Senate, Stakeholders Mull N1trn Capital Base For NEXIM

The Senate is working towards raising the capital base of the Nigerian Export-Import Bank (NEXIM) to one trillion naira in a bid to strengthen the nation’s financial institutions through reforms.

The legislative arm is also considering establishing an Export Development Trust Fund (EDTF) alongside the creation of a special tribunal to resolve insurance disputes.

These and other issues were extensively discussed at a public hearing on Wednesday, organised by the Senate Committee on Banking, Insurance and Other Financial Institutions.

Two bills under consideration are the Nigerian Export-Import Bank (Amendment) Bill, 2025, and the National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025.

The two bills, according to the sponsors, are being proposed to fortify Nigeria’s financial ecosystem and align it with global standards.

In his opening address at the hearing, the chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Tokunbo Abiru,
said the bills represented a crucial step in shaping the future of Nigeria’s financial system.

According to him, they seek to modernise outdated laws and foster innovation-driven regulation in the industry.

Abiru added that the NEXIM Amendment Bill seeks to review the 1991 Act that established the bank, while the new Insurance Regulatory Commission Bill would replace what he called the obsolete 1997 NAICOM Act.

The lawmaker further stated that the two bills combined would ensure the nation’s financial system becomes more transparent, competitive, and globally aligned.

“Effective lawmaking is never a solitary process. We are here to critically examine both bills and ensure they align with our national goals of economic transformation and financial stability,” Senator Abiru said.

On his part, President of the Senate Godswill Akpabio described the two bills as the National Assembly’s “covenant” with the economic future of Nigeria.

Akpabio, who was represented by the Senate Whip, Tahir Monguno, said the proposed reforms were instruments of national renewal.

Akpabio said, “The NEXIM Bank is not just a bank; it is a bridge between our factories and the world. It must be empowered to lead, not just to lend.

“Similarly, the insurance sector must rise beyond routine paperwork to become a bulwark of trust and fairness in our economy.”

The Senate President charged his fellow lawmakers to legislate for posterity and not convenience.

He emphasised that history would remember the 10th Senate for “clarity, courage, and conviction.”

The Managing Director of NEXIM Bank, Abba Bello, said he wholly agreed with the proposed amendments, adding that the extant law had become obsolete, having been in use for 33 years.

Bello said the bank’s current capital of ₦50bn, roughly $33m, was grossly inadequate to support Nigeria’s expanding export ambitions. He cited the African Continental Free Trade Area (AfCFTA) as an area where emerging challenges must be met.

“We fully support the proposal to raise the capital base to at least ₦500bn, and ideally ₦1tn, to enable NEXIM to deliver on its mandate,” Bello said.

The Managing Director also aligned with proposed reforms that would separate the roles of the Central Bank of Nigeria (CBN) from NEXIM’s board.

This, he said, would promote continuity of governance and create an Export Development Fund to support export-oriented businesses.

Also concurring was the Capital Market Academics of Nigeria, which urged senators to peg NEXIM’s minimum capital at ₦1tn instead and not ₦500bn.

It cited the stronger financial standing of peer institutions in India, China, and South Africa to back its position.

The association stated in a memorandum that NEXIM’s undercapitalisation has limited its impact and excluded it from global credit ratings.

It called for a more inclusive board structure featuring the Chartered Institute of Bankers and the National Association of Chambers of Commerce and allied bodies.

Similarly, the Ministry of Finance Incorporated (MOFI) also supported the ₦1tn benchmark and clarified that the government’s shares in NEXIM should be held through MOFI, which it said was in line with its statutory mandate as the Federal Government’s asset-holding entity.

The Commissioner for Insurance, Olusegun Omosehin, described the establishment of an Export Promotion Trust Fund as “a masterstroke” that could transform Nigeria’s non-oil export sector.

“This is a long-overdue innovation that will allow exporters to access funding for raw materials, logistics, and capital goods,” Omosehin said.

The insurance chief further backed NEXIM’s inclusion of the insurance regulator on its board to strengthen underwriting standards and risk management.

In its own position paper, the Nigeria Deposit Insurance Corporation (NDIC) called for its inclusion on the NEXIM board, citing its expertise in risk management.

The NDIC also supported the higher capital base and demanded stricter accountability for the proposed trust fund.

The position of the construction and manufacturing sectors was not different; they commended the new Export Promotion Fund.

They, however, urged lawmakers to ensure that building materials, construction technology, and housing components were explicitly listed as eligible export items.

On the Insurance Regulatory Commission Bill, which seeks to repeal and replace the 1997 National Insurance Commission Act, insurance boss Omosehin said the new law was designed to reflect modern realities.

He added that if eventually passed, it would empower the regulator to supervise digital insurance platforms, issue compliance directives, and merge failing institutions when necessary.

Stakeholders also commended the proposal on the creation of an Insurance Dispute Resolution Tribunal, which they described as a transformative reform that would enhance investor and consumer confidence.

“The tribunal will provide quick, affordable, and professional redress to policyholders. It will restore trust in the system and encourage more Nigerians to embrace insurance,” Omosehin said.

The bill, among others, also proposed new regulatory powers, updated board composition, stricter compliance timelines for insurance levies, and a framework for regulating actuarial practice.