The Association of African Development Finance Institutions (AADFI)rated the Nigerian Export-Import Bank (Nexim) as the “Best Performing African Development Finance Institution” AT THE 2013 Annual AADFI CEOs Forum of African Development Banks and Finance Institutions.
According to AADFI, the Peer Review Exercise with the AADFI PSGRS was not a competition but an approach to evaluate DFIs in the various areas of governance, finance, and operation in order to identify areas of weaknesses for self-improvement and strengths for consolidation. Nexim’s success can be owed to the leadership of Roberts Orya. Prior to coming onboard in mid-2009, the development bank suffered from a negative rating. By 2012, Nexim moved up to a B-rating and the following year achieved an A-rating.
In 2009, the Bank’s total loan portfolio of around $90 million with 72% as non-performing and 69% classified as lost. The net effect was a depletion of the Bank’s shareholders funds as a result of accumulated losses, significant decrease in income, and tolerance of excessive and escalating overheads. In 2010 a Corporate Transformation was implemented focusing on key areas in conjunction with KPMG Professional Services such as strategy, risk management and corporate governance, financial performance, operations, and organization. The outcome of the exercise was the Corporate Transformation Project (Project Spring) which led to the re-definition of the Bank’s Mission, Vision, and Strategic Objectives targeting four sectors:manufacturing, agro-processing, solid minerals & services.
Between August 2009 and December 2013, Nexim has supported Nigerian exporters, mainly SMEs, to the tune of $190 million and issued guarantees valued at $27.30 million.
Orya said: “The current rating of NEXIM as Best Performing African DFI from a negative rating in 2011 by AADFI is a clear testimony that the Corporate Transformation initiative we embarked upon since August 2009 has largely succeeded. The Bank is now better repositioned to deliver on its mandate through more capital injection and other institutional support from our two shareholders – CBN and Federal Ministry of Finance in terms of supervisory, regulatory oversight, and guidance functions. This has increased our capacity to support the growth of the non-oil exports and complement the export boosting activities of commercial banks. In all, we have consistently maintained a robust strategy, efficient operations through sustenance of highly skilled and motivated personnel.”
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