“ACCESS TO
FINANCE FROM
NEXIM”
MANUFACTURING
SOLID MINERALS
AGRICULTURE
SERVICES
A PRESENTATION BY THE NIGERIAN EXPORT IMPORT BANK
(NEXIM)
AT THE WORKSHOP FOR SMEs ON BUSINESS GROWTH
OPPORTUNITY AND ACCESS TO FINANCE.
AUGUST 27, 2015
OUTLINE
o MANDATE AND FUNCTIONS OF
NEXIM
o NEXIM’S PRODUCT AND SERVICES
o HOW TO ACCESS NEXIM FACILITIES
o CONCLUDING REMARKS
BACKGROUND AND MANDATE OF NEXIM
The Nigerian Export – Import Bank was established by Act 38 of 1991 as
Nigeria’s Export Credit Agency (ECA). The Bank is equally owned by the Central
Bank of Nigeria(CBN) and the Federal Ministry of Finance Incorporated (MOFI).
The Bank has the broad mandate of diversifying the Nigerian economy and
developing the external sector through the provision of the following services:
o Credit Facilities in both local and foreign currencies,
o Risk-bearing facilities - Export Credit Guarantee & Export Credit Insurance
o Business Development and Financial Advisory Services
o Trade & Market Information
The Bank also complements in attracting foreign investment capital towards
the development and growth of targeted industries and strategic sectors of the
economy through availment of concessional lines of credit, co-financing
arrangements and facilitation of buyers’ / suppliers’ credit for the purpose of
adoption and acquisition of new and clean technologies, assess to
patents/intellectual properties, etc
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NEXIM’S Product & Market Focus
NEXIM’s Funding Strategy and Market Focus
Complement the role of
the commercial banks
and other Development
Financial Institutions
By focusing on the
unserved markets
Market Focus
ECOWAS
Manufacturing
Rest of Africa
Agriculture
(i.e. Agro-processing)
Solid Minerals
Asia
Services
(Transport, Tourism &
Entertainment)
Developed Economies
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NEXIM’S PRODUCTS & SERVICES
Direct Lending Facility
 NEXIM grants short, medium and long term fixed
rate loans to exporters directly and/or under cofinancing / syndication arrangement with eligible
banks
 Loans are granted to Nigerian exporters in both
local and foreign currencies up to 80% of total
project cost.
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NEXIM’S PRODUCTS & SERVICES
 Foreign Input Facility
NEXIM grants short, medium and long term fixed
rate loans in foreign currency to participating
banks on behalf of their export clients for the
importation of raw materials, capital equipment
and spare parts needed for the production of goods
for export
Under this facility, the exporter must use at least
60% (by value) of local raw materials or
intermediate goods/services produced in Nigeria
for its products
Or local value addition must exceed 50%
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NEXIM’S PRODUCTS & SERVICES
 Local Input Facility
o NEXIM grants short, medium and long term fixed rate loans in local
currency to participating banks on behalf of their export clients
o Objective is to provide medium/long term finance in local currency to
exporters through commercial banks for
 Setting up new export projects
 Revitalising, acquisition of additional assets for modernisation and/
or expansion of existing production units for exports
 Acquisition, rehabilitation and or expansion of plantations and
processing of exportable products
 Acquisition of spare parts and packaging materials for manufacture of
exportable products
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NEXIM’S PRODUCTS & SERVICES
 Rediscounting and Refinancing Facility
Provides short term finance to DMB in support of
exports
The objective is to influence the cost of credit to
the export sector, enhance its competitiveness and
encourage banks to finance the procurement of nonoil export goods, raw materials and processing
It is made available in local currency to exporters
through their banks and is available for a maximum
tenor of one year at concessionary rate determined
by NEXIM
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NEXIM’S PRODUCTS & SERVICES
Stocking Facility
 The purpose is to assist manufacturing exporters to
have adequate working capital to stock needed raw
materials that are mainly seasonal in nature and
achieve optimal level of production all year round
 It is made available in local (or foreign currency) to
exporters through their banks and is available for a
maximum term of one year at a fixed rate
determined by NEXIM
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NEXIM’S PRODUCTS & SERVICES
Export Credit Guarantees
 This facility is designed to protect banks in Nigeria
against the risk of non-payment for loans or
advances granted to exporters to meet short term
export contracts
Export Credit Insurance
 This is designed to protect exporters in Nigeria
against the risk of non-payment for goods and
services exported on credit terms.
 Risk covered include commercial, economic or
political risk
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NEXIM’S PRODUCTS & SERVICES
ECOWAS Trade Support Facility (ETSF)
 NEXIM launched the ECOWAS Trade Support Facility (ETSF) through
which funding intervention is provided to exporters, especially
small scale traders exporting into the ECOWAS sub-region.
 Approximately N1billion is expected to be disbursed in 2014 under
this programme
 Benefits include:
 Increased volume of recorded trade
 Deepening regional trade and achieving market diversification
 Creating jobs and investment opportunities in line with
Government’s transformation agenda.
 Improved payment system.
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NEXIM’S PRODUCTS & SERVICES
 The Creative/ Entertainment Industry Scheme
 The industry is one of the largest employer of labour –currently
employing over 2million people.
 Nigeria’s Nollywood industry is the most prolific in the world and
3rd largest in revenue (grossing US$430m annually)
 NEXIM has been playing a leading role in developing this industry
in line with Mr President’s policy initiative
 The Bank extends loans to eligible companies in the value chain,
including
support
for
improvement
of
distribution
infrastructure/platforms and establishment of new digital
production studios.
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ACCESSING NEXIM’S FACILITIES
Eligibility Criteria
The Bank’s facilities are available to any registered,
creditworthy
export
Company/Cooperative
Society,
incorporated in Nigeria, registered with the Nigerian Export
Promotion Council (NEPC).
v.
i.
ii.
Documentation
Required
Application Form
Certified True Copy of
Certificate
of
Incorporation, Certified
True copies of CO2 &
CO7; and Memorandum &
Articles of Association;
iii. Current three year tax
clearance;
iv. Three (3) year Audited
Accounts and most recent
management
accounts,
where applicable
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Feasibility Study/Business
Plan including Projected
Cash flow, P&L and
vi. Board
Resolution
Authorizing Company to
borrow
and Letter of
Authorization for NEXIM to
seek
information
on
Company;
vii. Registration with NEPC;
viii. Proforma Invoice; Export
Contract or MOU and
Evidence of past export(s)
if any;
ix. Valuation Report of the
proposed security;
CONCLUDING REMARKS
 The Bank’s objective is to increase intervention in the underserved,
but key sectors of the economy in line with the Federal
Government’s Transformation Agenda.
 NEXIM is particularly interested in working with SMEs and since
inception has supported over 1,000 SMEs, many of which currently
rank among the top 100 exporters in Nigeria
 We, therefore, welcome applications from bankable projects and
exporters in our target sectors as identified above.
 Also, the Bank wishes to invite the informal / small traders as well
as large export merchants to avail themselves of the newly
introduced ECOWAS Trade Support Facilitate (ETSF), which is
designed to deepen and expand Nigeria’s trade in the ECOWAS subregion, in addition to helping small exporters to expand their
businesses and bring them into the formal sector.
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OUR CONTACT
Head Office
Plot 975, Cadastral Zone A0,
Central Business District,
Abuja
Website: www.neximbank.com.ng
E-mail:
neximabj@neximbank.com.ng
Branches:
Lagos Area Office,
Calabar Area Office
Kano Area Office
18A Gerard Road,
Calabar Free Trade Zone
Fatima House,
Ikoyi,
Cross River State
Murtala Ikoyi,
Lagos State
neximlag@neximbank.com.ng
Kano State
neximcepz@neximbank.com.ng
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neximkao@neximbank.com.ng
Q&A
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THANK YOU FOR YOUR ATTENTION