The Nigerian Export-Import Bank (NEXIM) was established by Act 38 of 1991, as an Export Credit Agency.

The statutory functions of the Bank include providing finance, risk bearing services as well as trade and market information and export advisory services to the Nigerian export community.

The Bank is 100% Government owned and has an authorised share capital of N50,000,000,000 (Fifty Billion Naira), equally subscribed to by the Federal Ministry of Finance Incorporate (MOFI) and the Central Bank of Nigeria (CBN)

We operate as a development finance Institution (DFI) with the main objective of developing the high growth sectors of the economy. The Bank plays a complementary role to commercial banks and unlike commercial banks, NEXIM does not accept customer deposits.

NEXIM’s services are targeted at the export sector, with specific focus on the underserved market segments which the commercial banks initially find unattractive or too risky.

1. NEXIM Facilities:

a)STOCKING FACILITY (SF)
The SF is specifically designed to assist manufacturing exporters to have adequate working capital to stock local raw materials that are mainly seasonal in nature in order to achieve optimum level of production all year round. It is an interbank facility made available to exporters in local currency for a maximum term of 360 days.

b) LOCAL INPUT FACILITY (LIF)
The Local Input Facility is a medium/long-term facility disbursed in local currency for the purpose of asset acquisition/modernization, and/or expansion of existing production units for exports. The facility is also made available for the acquisition, rehabilitation and/or expansion of production and processing of exportable products. The facility has a maximum tenor of seven (7) years inclusive of a moratorium period of not more than two (2) years.

c) FOREIGN INPUT FACILITY (FIF)
This provides manufacturers of export products foreign currency loans to import capital equipment, packaging and raw materials to produce finished products for export. The facility has a maximum tenor of seven (7) years inclusive of a moratorium period of not more than two (2) years. It is repayable in foreign currency

EXPORT CREDIT GUARANTEE FACILITY (ECGF)
This facility is operated as a guarantee provided to banks in respect of credit given to exporters in support of the export of goods and services from Nigeria. It also enables Nigerian exporters to access credit internationally on terms that are more competitive than that offered within the local market.

EXPORT CREDIT INSURANCE FACILITY (ECIF)
This facility insures exporters against risk of non-payment by buyers where such default is ascribable to commercial/economic causes. Payment defaults due to political reasons are covered separately by NEXIM for the account of the Federal Government of Nigeria.

ECOWAS INTER-STATE ROAD TRANSIT SCHEME (ISRT)
In line with ECOWAS protocol on free movement of persons, goods and services, NEXIM was appointed the National Guarantor under the ECOWAS Inter-state Road Transit Scheme to guarantee goods transiting Nigeria to other ECOWAS countries. The scheme, which is designed to promote free flow of goods among member states, seeks to eliminate the time wasting escort system and diversion of goods consigned to specific destinations in the ECOWAS sub-region.

ECOWAS TRADE SUPPORT FACILITY (ETSF)
This Facility is designed to improve the flow of trade from Nigeria to the sub-region, enhance price competitiveness and deepen the regional payment system. It involves the granting of a Line of Credit or a Guarantee to facilitate the purchase by an ECOWAS importer of Nigerian Goods.

NIGERIAN CREATIVE AND ENTERTAINMENT INDUSTRY STIMULATION LOAN SCHEME (NCEILS)
The Loan is intended to address issues regarding the institution of credible structures, attract investment in the development of content and infrastructure in the media and entertainment sector as well as improvement in production standards, distribution, and marketing and exhibition standards of the sector. The categories eligible for funding support include the Production, Distribution, Exhibition of Film, Television, Radio and Fashion and the creation of Distribution Infrastructure/Platforms, etc.

2. Managed Funds:

REDISCOUNTING AND REFINANCING FACILITY (RRF)
The RRF is a short term interbank facility which NEXIM avails to the commercial banks, to enable them refinance their export bills/transactions. The facility is available for a maximum tenor of 360 days at a rate of 6%p.a., enabling the commercial bank to maintain their liquidity and provide cheaper credit to Nigerian exporters. The Bank currently has a N50billion RRF window availed to it by the CBN.

EXPORT STIMULATION FACILITY (ESF)
The N500bn Export Stimulation Facility is a long term facility with a tenor up to 10 years, available to all operators in the export value chain, including start-ups and existing projects wishing to expand. It is available as working capital/stocking facility or for acquisition of plant and machinery for processing and packaging of goods for export.
The ESF comes at a maximum cost of 7.5% for short tenored transactions up to 3 years, and 9% for longer term transactions up to 10 years
Under the scheme, exporters can apply for a maximum of N5billion. All applications under the scheme are expected to be submitted to NEXIM through Participating Financial Institutions (PFI), which could be a Commercial Bank or other Development Finance Institutions. The PFI will then forward such applications to NEXIM, after satisfactory review in line with the eligibility criteria provided in the guidelines. NEXIM will in turn further review the application and forward the applications to the Central Bank of Nigeria for approval and funding.

a) Processing Fees: Upon submission of an application the client pays a N50,000.00 non-refundable application fee.

b) Cost of Facility: The Bank’s Financing Schemes are availed either directly to beneficiary clients or as interbank facilities. Below are the banks indicative fee structure, based on risk based pricing in respect of the products and services:

• a) Rediscounting & Refinancing Facility [RRF]: 3% to Participating Banks [PBs] who are allowed a maximum spread of 3% per annum ; subject to an ‘’all-in’’ rate of a maximum of 6%
• b) Export Stimulation Fund [ESF]: 3% per annum to PBs with the Banks allowed a maximum all in interest rate of 7.5% for short term facility and a maximum all-in interest of 9% for medium to long term facility.
• c) Stocking Facility: This Facility is MPR linked and is currently available at between 14% per annum to the PBs allowed a maximum spread of 3% per annum

ii. Direct Lending Facility:
This Facility is MPR linked and is currently available at between 14% to 17% interest rate per annum and a maximum of 1% as up front Management Fee.

iii. Lines of Credit [LOC]
The LOC’s pricing is based on a 3 months/ 6 months LIBOR reference rate with the following as the current rate per annum to beneficiary clients.

a) AfDB LOC 5% – 6.5%
b) Exim India LOC 6.5% – 7.5%
c) Afreximbank LOC 6.5% – 7.5%

The Bank charges a flat rate of 2% Guarantee fees and 1% Management fees for its Guarantee Facility.

The currency of lending could be Naira, US Dollar or any other convertible currency and the interest payment and principal repayment shall be in the currency of disbursement.

The Bank does not finance imports of finished goods for resale. However, through its Foreign Input Facility the Bank finances the imports of machinery, raw materials and other components which shall be used to process goods for export purposes.

The Bank supports both onshore and offshore activities that result in the export of Nigerian goods and services. However, the fundamental criterion to all our financing is that the exporter must be a duly registered Nigerian company and also registered with the Nigerian Export Promotion Council (NEPC) as an exporter.

The Bank’s Facilities are available in two forms:

• Directly: Whereby the applicant applies for financing directly to NEXIM. In this respect, all documentation requirements are submitted directly to NEXIM Bank. If the application is successful, the Bank administers and monitors the facility directly.
• Through commercial Banks: This allows NEXIM to take advantage of the extensive coverage offered by the banking system to reach all eligible exporters. As such, exporters applying for facilities are required to submit relevant documents to their chosen banker. Upon a successful application and acceptance of the offer, the commercial bank administers and monitors the facility and updates NEXIM on the facility regularly.

No, there are no specific banks through which NEXIM disburses its loan facilities. All licensed banks are eligible to access NEXIM support. To participate in the schemes offered, the Bank undertakes an assessment of the banks based on their financials, categorizes them and sets exposure limits or credit lines under which they can draw to refinance their export portfolio. These categories are from A to E with category ‘A’ banks enjoying the highest limit.

To ensure that commercial banks adhere to its uniform pricing policy, NEXIM has put in place checks and balances that limit the abuse of the system by ensuring that the exporter is advised independent of the intermediating bank of both the rejection/approval and terms of the credit. Exporters are further advised to report cases of abuse for investigation and appropriate sanctioning.

Following the submission of the application, Processing & Approval takes between 4 – 12 Weeks. This however, depends largely on the client’s submission of complete documentation by the client.

The Bank evaluates each application on its merits, by conducting due diligence on the project, the relevant corporate entities such as sponsor, borrower, supplier/contractor, guarantors. The review also covers assessment of the market, the financial projections and the destination of export in addition to the agreements and contracts pertaining to the transaction.
The schedule officer shall ensure that search reports from Corporate Affairs Commission (CAC), CBN Credit Bureau or in the case of title document, from the relevant Land Registry, verifying the authenticity of the documents submitted are also obtained.

The security requirements shall be determined on NEXIM on the merits of each transaction. Generally, one or more of the following may be accepted as security from borrowers with whom NEXIM intends to extend direct loans to:

• a) Promissory note (s) for the amount of facilities granted from a reputable organization/institution acceptable to the Bank;
• b) An unconditional Bank guarantee from an acceptable bank to NEXIM;
• c) Personal guarantee of the directors of the borrower;
• d) Assignment of underlying export receivables;
• e) Lien on deposits. NEXIM shall have right of set-off;
• f) Lien on the exportable commodity and/or stock in warehouse;
• g) First legal charge on stock of inventory (raw materials and finished goods), fixed assets including landed properties, spares and equipment on which the borrower has clean title. Landed Properties belonging to the borrower or its directors shall be located in a place acceptable to NEXIM and whose value, is determined by a competent professional;
• h) Marketable financial instruments;
• i) Share certificates of quoted companies, investment certificates and commercial bills acceptable to NEXIM;
• j) Warehousing agreement issued by a reputable warehousing agent;
• k) Letter of hypothecation;
• l) Insurance cover from an acceptable/reputable insurance company, where necessary;
• m) Lease Agreement; where applicable;
• n) Negative pledge from companies acceptable to NEXIM;
• o) Any other security that may be acceptable to NEXIM.

In case of default on repayment of principal or interest, NEXIM shall charge 4% for short term facilities and 1% for medium and long term facilities, above the rate at which the initial loan was given and for the period of the default.

No. As part of its strategic repositioning exercise, the Bank has decided to focus its intervention in the Manufacturing, Agricultural, Solid Minerals and Services sectors (MASS), which are considered to be the critical sectors of the economy.

Yes. Some of the Bank’s most successful clients were financed as start-ups. However, the credit limit of start-ups is lower than that of already established companies.

Ideally, the Bank will finance customers who export more than ½ of their production. However, if the product has an emerging market focus and, in the future, the exporter could increase the volume of exports in line with the Bank’s requirements, the project could be financed.

Depending on the type of facility, the proportion to be financed by the Bank shall be:

• Pre-shipment – up to 75% of the value of the underlying export;
• Post-shipment – up to 85% of the value of the underlying exports;
• Letter of Credit
• Confirmation & Refinancing – up to 100% of the invoice value
• Project related financing – up to 100% of the invoice value of the equipment provided it shall not be more than 80% of the total project cost.

The Bank finances the acquisition of plant and machinery as well as working capital for production and trading.
Eligible transactions that qualify for the support of NEXIM include the following:

• All transactions connected with export of goods wholly or partly manufactured in Nigeria;
• All transactions connected with export of commodities, which are exportable under the laws of Nigeria;
• All transactions connected with projects established for the production of export goods or for the production of inputs into the production of manufactured goods meant for export;
• All export-generating imports, principally raw materials, equipment and spare parts required by a manufacturing exporter;
• All export of services (consultancy, tourism, oil and gas services etc);
• Preference shall be given to non-traditional exports especially manufactures and solid minerals.

NEXIM does not support the financing of the export of:

• Armaments, ammunition and other military equipment;
• Psychotropic drugs or narcotics;
• All items for which international trade is prohibited by environmental reasons or by international conventions;
• Pornographic and obscene materials, and
• Items, which are from time to time, be placed under the export/import prohibition list of the Federal Government.

One of the aspirations of NEXIM is to become a repository of trade and financial information as well as a reliable source of market and product intelligence. To this end, the Bank has established technical working relationships with other Export Credit Agencies around the world; created linkages with major financial, commodity and product markets, and subscribed to current and reputable markets and economic developments journals to provide its customers with accurate and reliable business information. This information is made available either through the telephone, in writing or through direct discussion.

Furthermore, the Bank organizes quarterly exporter enlightenment seminars, which are held in the various geo-political zones of the country to ensure that all stakeholders are adequately informed of the rules and procedure for accessing the Bank’s facilities. These fora also serve as an additional avenue to receive feedback on the effectiveness of the Bank’s delivery channels and consequently enhance customer satisfaction.

NEXIM’s policy initiatives to ensure clean environment include supporting/encouraging investment in the Clean Development Mechanism (CDM) geared towards mitigating the adverse effects of global warming and encouraging earnings from trade in Carbon Credits/Certified Emission Reductions (CERs). Although, the Bank does not provide direct funds for these investments, it is able to support the projects by arranging financial syndications, through its financial advisory services.

Applications for the Bank’s facilities must be accompanied by the following documents:

1. Certified True Copy of Certificate of Incorporation including the form CO2 and CO7;
2. Current 3-year tax clearance certificates;
3. Audited Statement of Accounts for the last three years or the company’s most recent Management Accounts (where applicable);
4. Certified Memorandum and Articles of Association;
5. The Feasibility Study Report/Business Plan, which should provide a detail brief on the project, market analysis(including demand and supply situation), SWOT analysis, risk and mitigants as well as brief profile on the Members of the Board and Management of the company, in addition to information on their educational qualifications and experience; it should also include the Projected cash flow, profit and loss and balance sheet statements as well;
6. A Board resolution authorizing the company to borrow from NEXIM;
7. A letter from the company authorizing NEXIM to obtain information about the company from any source;
8. Duly executed authorized signature cards;
9. Copy of company’s registration with Nigerian Export Promotion Council (NEPC);
10. Certificate of performance, where applicable;
11. Copy of Proforma Invoice(s) from a reputable supplier(s);
12. Evidence of Licenses/Permits from relevant agencies, where applicable;
13. Evidence of export commitment or any other arrangement acceptable to NEXIM;
14. Evidence(s) of previous export performance;
15. Copy of Environmental Impact Assessment (EIA) Report, where applicable;
16. Details of any financial difficulties the borrower has encountered at any time during the last 3 years and how these have been resolved;
17. Full details and status of all other facilities obtained elsewhere, including collateral, conditions attached to the facilities, liens, etc;
18. Provision of adequate collateral security;
19. Valuation Report where applicable
20. Provision of a Letter of Comfort;
21. A non-refundable application fee N50,000.00 in bank draft.
22. Any other document that may be required by NEXIM.

The Bank ensures that all its manufacturing/agro processing clients obtain an environmental Impact Assessment (EIA) certificate from the Ministry of Environment, to certify that their business processes/operations do not damage the environment and in the event that they do, it issues a proof that the company cleans up any pollution to the environment.
In addition, NEXIM’s new policy initiatives include supporting/encouraging investment in the Clean Development Mechanism (CDM) geared towards mitigating the adverse effects of global warming and encouraging earnings from trade in Carbon Credits/Certified Emission Reductions (CERs). Although the Bank does not provide direct funds for these investments, it is able to support the projects by arranging financial syndications, through its financial advisory services.