Its Managing Director Orya Roberts told newsmen in Abuja that the bank will partner with ECOWAS Bank for Investment and Development (EBID) and African Export Import Bank (AFREXIM) to reduce Nigeria’s carbon footprint.

He said NEXIM would also engage with African Biofuels and Renewable Energy Fund (ABREF) and Global Biofuels Limited to create Nigeria’s first clean and renewable energy project tagged “grow your energy.”

Roberts said the need for the development of renewable energy is to reduce the effects of climate change induced by global warming. He said, “the devastating effects of climate change in Nigeria are at present unquantifiable.”

He said desert encroachment in the northern part of the country has displaced over 15 million people. He also said that about

500 communities in the South Eastern Nigeria may be displaced by gully erosion if urgent action is not taken.

He said that NEXIM and its partners would support hydro power energy generation, solar energy generation, thermal energy generation, biofuels and biomass energy production, wind power energy, energy efficiency and geothermal energy production. The intervention by NEXIM and its partners, Roberts said will bring about diversification of the economy, savings on fuel subsidy and commercialization of agriculture, among others.

THE Economic Community of West African State (ECOWAS) Bank for Investment Bank (EBID) has extended a credit line of $20 million (about N2.9 billion) to the Nigerian Export - Import Bank (NEXIM) as part of assistance to deepen export and import trade financing within the Africa region.

The loan facility as EBID President, Mr. Christian Adovlandi explained, would enable NEXIM overcome challenges of opening up boarder constrains in the face of current global economic situation within the continent.

It will also, according to him enable NEXIM respond to the provision of both medium and short-term funds to facilitate export and import trade within the ECOWAS sub-region.

Also initiated to boost export and import trade, is the launch of ECOWAS Trade Support Facility (ETSF) designed to provide short term financial accommodation to exporters in support of their trading activities in the West African sub-region.

Items eligible for support under this facility include, unprocessed goods, agriculture produce, raw materials, packaging materials, industrial products (processed or semi processed), as well as, finished goods wholly produced in members state with a minimum of 60 per cent local raw materials content and/ or value-added of at least 30 per cent of the ex-factory price of the finished goods with exception of armaments, ammunition and other military equipment, psychotropic drugs or narcotic.

In his opening remarks, NEXIM Managing Director, Robert U. Orya identified decline in the formal trade flows between countries in the region, especially, formal trade flows from Nigeria to other West Africa countries, which he noted had brought about dearth of trade statistical data for policy planning and formulation.

"Although some key stakeholders have also identified ignorance of the prospects of formal trade in the region and many other transactional bottlenecks as the basis for weakened trade in the region, permit me to say that the major problem is largely that of inadequate investment funds to finance and facilitate formal trade for prospective exporters and importers."

He said given the recent world economic crisis that brought about declining trade volumes and credit squeeze. "It is essential that developmental institutions pursue avenues of attracting long term investment funds for exporters to expand market destinations," adding that in order to achieve this singular objective of foreign capital inflow and intra-regional trade integration, the board of NEXIM has approved an initial take-off seed fund of N500 million while NEXIM strategic partners have agreed to open funding windows that would facilitate funding intervention under the ECOWAS TSF.

Minister of state for Finance, Remi Babalola represented by Mr. Winne Barry pledged the ministry's support to NEXIM in ensuring it realises its mandate and vision as the nation's export credit guaranty agency.

The Nigerian Export and Import Bank (NEXIM), yesterday kick started Nigeria’s first clean and renewable energy project tagged, “Grow Your Energy” aimed at curbing the devastating effects of climate change in the country.

Speaking at a press conference in Abuja to announce the creation of the Grow Your Energy project (GYE), the managing director of NEXIM, Dr Roberts Orya revealed that climate change had resulted in desert encroachment which moves at the rate of 660 metres per annum, and has displaced well over 15 million people in11 states in the northern part of Nigeria over the last ten years

According to Orya who said GYE was being carried out in partnership between NEXIM,AFREXIM Bank,ECOWAS Bank(EBID),AricanBiofuels and Renewable Fund(ABREF) and Global Biofuels Limited, about 25% of arable farmland in the northern part of Nigeria has been affected and 380,000 hectares of farmland is lost to desertification annually He said Lake Chad, which used to contain approximately 24,000 square kilometres of water, is almost completely depleted today as a result of climate change." The lake presently contains less than 15% of its original water content. Fishing activities on the Lake has thus been reduced by approximately 85% as we speak".

On erosion, Orya disclosed that in the South Eastern part of Nigeria , close to 500 communities are under constant threat and may disappear altogether as a result of gully erosion.

He explained that though the world is showing great concern to the effects of global warming and creating mitigation and adaptation measures, Nigeria is however yet to fully appreciate this phenomenon and pay adequate attention to it.

"It is in the light of the foregoing that we have chosen to pioneer a partnership that starts the creation of Nigeria's clean economy. It will also help in the realisation of the seven-point agenda of the president.”

Orya said Nigeria had ratified the Kyoto protocol and appointed a Designated National Authority (DNA) in the Special Climate Change Unit of the Federal Ministry of Environment to approve all clean development mechanism projects. He stressed that according to the World Bank study; more than 563 projects could be developed under the Clean Development Mechanism (CDM) regime for estimated revenue of $1.5billion per annum.

"NEXIM, Nigeria's first green bank, along with its partners, are therefore poised to lead in this national effort to position Nigeria as a leader on climate change issues. In this regard, NEXIM and its partners are already building internal capacity to tackle the paucity of knowledge,” he said.

Nigerian Export-Import Bank (NEXIM) is collaborating with four partners to champion effort to position Nigeria as leader on climate change issues towards attaining Clean Development Mechanism (CDM).

Other partners in the project are Africa Export-Import Bank (AFREXIM), ECOWAS BANK (EBID), African Biofuels and Renewable Energy Fund (ABREF) and Global Biofuels Limited.

They met in Abuja last weekend at the instance of NEXIM Bank with a view to creating Nigeria’s first clean and renewable energy project tagged ‘grow your energy’. Speaking at the occasion, the NEXIM Managing Director, Mr. Robert U. Orya drew members’ attention to global climate change noting that “we are in world today that is threatened by climate change and global warning. As a result many western countries and the developed world have braced up to the challenge by focusing on mitigation and adaptation criteria as a means of creating a green and clean economy”.

Orya listed unquantifiable devastating effects of climate change in Nigeria in the form of desertification, and flooding, stressing that “we have chosen to pioneer a partnership that starts the creation of Nigeria’s first mitigation and adaptation activity which according to him will not only create Nigeria’s clean economy, it will also help in the realization of the seven-point agenda of President”, he said.

According to NEXIM boss, areas that deserve immediate support of NEXIM and its partners include hydro power generation, solar energy generation, thermal energy generation and biofuels and biomass energy production. Other areas of concern that deserve immediate support are, wind power energy, energy efficiency and geothermal energy production.

Benefits derivable from Nigeria’s participation as Orya outlined are legion. Aside drastic reduction in Nigeria’s carbon footprint, he said it will create a huge employment opportunities and a cut down in poverty level. Other derivable benefits include, commercialization of agriculture, diversification of the national economy and a potential for huge foreign exchange earnings from the CDM as well as substantial savings on fuel subsidy.

Earlier, EBID President, Christian Adovlnadi said ECOWAS Bank for Investment and Development has financed a total of 93 projects covering equity participation which he put at $33 million, guarantee operation about $158 million bringing the total commitment by the 16 member states of ECOWAS as at December 31st 2009 to $191 million. The intervention according to him covers telecommunication industry, infrastructure, transport, service industry and tourism.

On EBID activities in Nigeria, he said: “EBID has specifically financed about seven operations till date to the tune of $50 million including what was signed yesterday and these projects cut across industry, telecommunications and service industry”.