Senate proposes capital raise of Nigerian Export Import Bank to N1trn

By Henry Umoru

ABUJA- THE Senate has proposed a hike in the capital base of the Nigerian Export-Import Bank, NEXIM, to N1 trillion, the establishment of an Export Development Trust Fund, and the creation of a special tribunal to resolve insurance disputes.

According to the Senate, the moves are geared towards the  strengthening of Nigeria’s financial institutions, as they are both  designed to  help fortify Nigeria’s financial ecosystem and align it with global standards.

These were sequel to a public hearing organised by the Senate Committee on Banking, Insurance and Other Financial Institutions, led by Senator Adetokunbo Abiru, APC, Lagos East, on two critical bills.

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

If passed into law, the two bills, with their far-reaching proposals for recapitalisation, the creation of a trust fund, and the establishment of a specialised tribunal, could mark one of the most significant overhauls of Nigeria’s financial regulatory framework in decades.

The event drew many stakeholders from across the financial, insurance, manufacturing, and academic sectors.

in his opening remarks, Senator Abiru noted that  the bills represented “a crucial step in shaping the future of Nigeria’s financial system” by modernising outdated laws and fostering innovation-driven regulation.

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

Abiru said that would “ensure Nigeria’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.”

In his remarks, the President of the Senate,  Senator Godswill Akpabio  described the two bills as a covenant with Nigeria’s economic future.

Represented by the  Senate Chief Whip, Senator Tahir Monguno, APC, Borno North, Akpabio noted that  the proposed reforms were not mere legislative exercises but instruments of national renewal.

He 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.”

Akpabio urged lawmakers to legislate “for posterity, not convenience,” emphasising that history would remember the 10th Senate as one that “met the hour with clarity, courage and conviction.”

On his part, NEXIM Bank Managing Director, Abba Bello, who  justified the proposed amendments, said the 33-year-old law had become obsolete.

Bello, who noted that the bank’s current capital of N50 billion,  roughly $33 million, was “grossly inadequate” to support Nigeria’s expanding export ambitions, particularly under the African Continental Free Trade Area, AfCFTA, said:  “We fully support the proposal to raise the capital base to at least N500 billion and, ideally N1 trillion, to enable NEXIM deliver on its mandate.”

He also backed reforms that would separate the roles of the Central Bank of Nigeria, CBN, from NEXIM’s board leadership, promote continuity of governance, and create an Export Development Fund to support export-oriented businesses.

At the event, the Capital Market Academics of Nigeria urged lawmakers to peg NEXIM’s minimum capital at N1 trillion, instead of n500 billion, citing the stronger financial standing of peer institutions in India, China and South Africa.

The association in its position paper, said:  “NEXIM’s undercapitalisation has limited its impact and excluded it from global credit ratings.”

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

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

In its presentation,  the Nigeria Deposit Insurance Corporation, NDIC, called for its inclusion on the NEXIM board, citing its expertise in risk management, even as it also supported the higher capital base and demanded stricter accountability for the proposed trust fund.

The construction and manufacturing sectors also  commended the new Export Promotion Fund and urged lawmakers to ensure that building materials, construction technology, and housing components were explicitly listed as eligible export items.

Deliberations also focused on the Insurance Regulatory Commission Bill, which seeks to repeal and replace the 1997 National Insurance Commission Act as the  commissioner, Omosehin, said the new law was designed to “reflect modern realities” by empowering the regulator to supervise digital insurance platforms, issue compliance directives, and merge failing institutions when necessary.

One major  proposed legislation is the creation of an Insurance Dispute Resolution Tribunal, which stakeholders described as a transformative reform that would enhance investor and consumer confidence.

On his part, Omosehin said:  “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.”

According to the the bill, there will be  new regulatory powers, updated board composition, stricter compliance timelines for insurance levies, and a framework for regulating actuarial practice, areas stakeholders agreed were long overdue.

After the deliberations and presentations,  Senator Abiru, in his closing remarks,  hailed all stakeholders for their depth of engagement and reaffirmed the Senate’s resolve to enact laws that would strengthen Nigeria’s financial architecture.

Abiru  said:  “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.”

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