The Nigerian Export-Import (NEXIM) Bank has disclosed plans to execute a $60 million Regional Sealink Project connecting West and Central Africa.

According Daily Times, NEXIM Bank Managing Director, Mr. Robert Orya, made the disclosure at a stakeholder forum in Lagos, adding that the Federation of West African Chambers of Commerce and Industry (FEWACCI) would partner on the project.

The project is expected to commence within the next three years of complete operation.

“The purpose of the Sealink project is to foster indigenous participation in the maritime sector through minimising of freight rate payment capital flight of the average of $5 billion annually.”

The project will cut across West and Central Africa, providing immediate impact to the amelioration of basic road infrastructure which has slowed African and ECOWAS trade levels by 20 percent.

“The total project cost is estimated at 60 million dollars with 36 million dollars to procure vessels, equipment, office space and other infrastructure. $24 million will be the working capital to cover the general and administrative expenses, summarised as equity of 36 million dollars and debt financing of 24 million dollars,” Orya added.

NEXIM’s MD also disclosed that the project would make Nigeria a maritime hub for West and Central Africa and enable NEXIM achieve its planned revenue growth by improving intra-regional trade levels to about 15 per cent annually.

Commenting on the development, the National President of Nigerian Association of Chambers of Commerce, Mines and Agriculture (NACCIMA), Ademola Ajayi said the Regional Sealink project would significantly reduce the premium freight charges witnessed due to the unavailability of direct shipping line plying the West African corridor.

Established in 1991, Nigerian Export-Import Bank  provides short and medium term loans to Nigerian exporters. It also provides short term guarantees for loans granted by Nigerian Banks to exporters as well as credit insurance against political and commercial risks in the event of non-payment by foreign buyers.

The Bank is also the government’s National Guarantor under the ECOWAS Inter-state Road Transit programme.

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