Senate proposes ₦1trn capital base for NEXIM Bank

..Export Fund, and Insurance Tribunal

By Henry Umoru, Abuja

The Senate has proposed a significant increase in the capital base of the Nigerian Export-Import Bank (NEXIM) to ₦1 trillion, alongside the establishment of an Export Development Trust Fund and the creation of a special Insurance Dispute Resolution Tribunal.

According to lawmakers, the reforms are aimed at strengthening Nigeria’s financial institutions, aligning them with global best practices, and positioning the economy for sustainable growth.

The proposals were discussed during a public hearing organized by the Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Adetokunbo Abiru (APC, Lagos East). The session focused on two key bills — the Nigerian Export-Import Bank (Amendment) Bill, 2025, and the National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025.

If passed, the two bills are expected to trigger one of the most comprehensive overhauls of Nigeria’s financial regulatory framework in decades.

In his opening remarks, Senator Abiru said the proposed laws mark “a crucial step in shaping the future of Nigeria’s financial system,” modernizing outdated statutes and promoting innovation-driven regulation.

He explained that the NEXIM Amendment Bill would update the 1991 Act that established the bank, while the new Insurance Regulatory Commission Bill would replace the obsolete 1997 NAICOM Act.

“These reforms will ensure Nigeria’s financial system becomes more transparent, competitive, and globally aligned,” Abiru said.

In his goodwill message, the President of the Senate, Senator Godswill Akpabio, represented by the Chief Whip, Senator Tahir Monguno (APC, Borno North), described the bills as “a covenant with Nigeria’s economic future.”

“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,” Akpabio stated.

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

The Managing Director of NEXIM Bank, Abba Bello, supported the proposed recapitalization, describing the existing ₦50 billion capital base — roughly $33 million — as “grossly inadequate” to support Nigeria’s growing export ambitions under the African Continental Free Trade Area (AfCFTA).

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

He also advocated reforms separating the Central Bank of Nigeria (CBN) from NEXIM’s board leadership and establishing an Export Development Fund to support export-oriented businesses.

The Capital Market Academics of Nigeria echoed these sentiments, urging lawmakers to peg NEXIM’s minimum capital at ₦1 trillion, citing stronger benchmarks from peer institutions in India, China, and South Africa.

The Ministry of Finance Incorporated (MOFI) also backed the ₦1 trillion benchmark, emphasizing that the government’s shares in NEXIM should be held through MOFI in line with its statutory asset-management mandate.

In his contribution, Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, described the proposed Export Development Trust Fund as “a masterstroke” capable of transforming 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,” he said, endorsing the inclusion of insurance regulators on NEXIM’s board to improve underwriting and risk management.

The Nigeria Deposit Insurance Corporation (NDIC) also sought representation on NEXIM’s board, citing its expertise in risk management, while backing the recapitalization and calling for stricter oversight of the trust fund.

Stakeholders from the construction and manufacturing sectors commended the Export Promotion Fund proposal and urged lawmakers to list building materials and construction components as eligible export items.

Deliberations also focused on the Insurance Regulatory Commission Bill, which seeks to empower the regulator to oversee digital insurance platforms, issue compliance directives, and merge failing institutions when necessary.

A key innovation in the bill is the proposed Insurance Dispute Resolution Tribunal, which stakeholders described as a transformative reform that would enhance investor and consumer confidence.

“The tribunal will provide quick, affordable, and professional redress to policyholders, restoring trust and encouraging more Nigerians to embrace insurance,” Omosehin noted.

The bill also proposes new regulatory powers, updated board structures, stricter compliance timelines, and a framework for actuarial regulation — reforms long considered overdue.

In his closing remarks, Senator Abiru hailed stakeholders for their robust input and reaffirmed the Senate’s commitment to strengthening Nigeria’s financial architecture.

“Our goal is to produce legislation that strengthens institutions, inspires confidence, and positions Nigeria’s financial system for global relevance. With your cooperation, we shall deliver reforms that make our financial system not only efficient but transformative,” he said.

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