The Nigerian Export-Import Bank (NEXIM) has expressed strong support for a proposed bill that aims to increase its share capital from 50 billion to 1 trillion. The bank’s Managing Director, Abba Bello, made this known during a public hearing organized by the Senate Committee on Banking, Insurance and Other Financial Institutions. According to Bello, the current share capital is grossly inadequate to support the bank’s mandate and align it with modern banking realities.
The proposed increase in share capital is expected to strengthen NEXIM’s ability to finance exports and support Nigeria’s participation in global trade. Bello noted that the current capitalization limits the bank’s operational capacity and competitiveness, and that raising it to 1 trillion would enable the bank to play a more significant role in promoting Nigeria’s exports.
In addition to the proposed increase in share capital, the bill also seeks to reconstitute the bank’s board, with a proposal to exclude the Central Bank of Nigeria (CBN) from the board. Bello supported this proposal, stating that the CBN already performs regulatory functions and should not serve as both a regulator and board member of a financial institution.
Other stakeholders in the financial sector, including the National Insurance Commission (NAICOM), the Bank Directors Association of Nigeria (BDAN), and the President of the Capital Market Academics of Nigeria, also supported the proposed increase in share capital. The Nigeria Deposit Insurance Corporation (NDIC) proposed that it should be represented on NEXIM’s board to ensure adequate oversight and protection of stakeholders’ interests.
The public hearing also discussed a separate bill seeking to repeal the National Insurance Commission Act and replace it with the proposed Insurance Regulatory Commission Bill, 2025. The new bill aims to strengthen the regulatory framework for the insurance industry.
In his closing remarks, the Chairman of the Senate Committee, Senator Adetokunbo Abiru, assured stakeholders that all submissions would be thoroughly reviewed to produce a robust piece of legislation that would enhance the powers and effectiveness of Nigeria’s financial and insurance regulators. The proposed bills are expected to have a significant impact on Nigeria’s financial sector, and stakeholders are eagerly awaiting the outcome of the legislative process.