The Nigerian Export-Import Bank (NEXIM) and Katsina state government are partnering to begin establishment of sesame and hibiscus flower processing hubs for processing and export to foreign countries.
Managing director of NEXIM, Abba Bello said it is in line with the federal government’s one state, one product programme to support production of exportable crops to value addition before export.
The partnership is targeting to create nothing less than 1000 jobs directly and another 5000 indirect jobs – along the full value chain. The process is designed to involve all players in the sesame and hibiscus production value chain.
“We believe in partnership with the Katsina state government and identified entrepreneurs in Katsina state we can actually drive it,” executive director, business development at NEXIM, Stella Okotete said while addressing a delegation from Katsina state led by Governor Aminu Masari in the headquarters of the Bank in Abuja on Wednesday.
The director said 1200 farmers have been identified to be sponsored to grow sesame up to international standard in Katsina state for export. “We believe that if we can have more business owners, entrepreneurs come up to sign up for our project drive, we can actually create more than the 1200 jobs currently secured with the 1200 farmers,” Okotete said.
Apart from the N1bn seed fund per state, Hon Okotete disclosed that NEXIM is currently designing an aggregator export programme with NIRSAL with the aim of identifying aggregators or anchors who will feed the farmers in the field with the needed support, including seedlings, insecticides to grow exportable commodities and aggregate them for export.
The delegation was in NEXIM to fast-track the release of the remaining 40 per cent of its N2 billion loan facility after completing the 60 per cent of the requirement to access the N2 billion export development fund. According to Masari, the money is meant for development of the rural areas that make the commodity available.
On his part, Governor Masari said Katsina state government is developing 800 hectares of Economic Green Zone purposely for export. He said the intention is to partner NEXIM Bank to put the final infrastructure in place to attract more investors.
Masari who said his government was developing the Economic Green Zone because Katsina is a gateway to some neighbouring countries to Nigeria on the West African axis, added, “Our intension is to have medium and small processing of Sesame and Hibiscus. He disclosed that there are some Indian companies that are ready to come into the state after the construction of some link roads to invest in processing of the products.”
The NEXIM Boss responded that the Bank will be very interested in knowing more about the development of the 800 hectares Green Zone and how it can key into it and support it together with its partner (Afrexim Bank) with provision of infrastructure.
“It becomes more important that Katsina is an export route, especially with the coming of the African Continental Free Trade Area. We must prepare ourselves and our economic/industrial zone for such purposes,” he added.
The Bank expressed hope that both parties would be able to find ways to deepen investments in Hibiscus in Katsina State so that we can have it in commercial volumes; add value and export. The plan is to be able to process it to red Tea, syrup and juice for export.
“All of these are doable and NEXIM Bank is positioned to support states that are willing to develop their export basket. We will do whatever is needed to ensure we grow the export basket from Katsina State,” Okotete added.