The Small and Medium Enterprise Export Facility (SMEEF) is designed to support Export-Oriented Small and Medium Enterprises in the non-oil exports value-chain.
The intention of the SMEEF is to stimulate and increase deliberate funding to Small and Medium Enterprises (SMEs) towards broadening Nigeria’s export basket and facilitating industrialization for value added exports.
Definition of Small and Medium Enterprises (SME)
For the purpose of this Facility, Small and Medium Enterprises are defined as:
| Column 1 heading | EMPLOYMENT | ASSETS (‘N’ Million) |
|---|---|---|
| Small Enterprises | 10-49 Staff | 5- 50 |
| Medium Enterprises | 50-199 Staff | 50- 500 |
Other yardsticks include;
- Businesses with turnover of less than N100.0 Million per annum;
- Businesses with Share Capital of less than N5,000,000.
Objectives of the Facility
The objectives of Small and Medium Enterprise Export Facility (SMEEF) are to:
- Improve access of Export-Oriented Small and Medium Enterprises (SMEs), Clusters, and Associations to concessionary finance in a bid to expand and diversify the non-oil export baskets.
- Attract new investments and encourage re-investments in value-added non-oil exports.
- Revamp/ resuscitate Export-Oriented Small and Medium Enterprises (SMEs), Clusters and Associations to create and sustain more jobs within the non-oil export sector in Nigeria.
- Support Small and Medium Enterprises (SMEs), Clusters and Associations to stock seasonal commodities such as Cocoa Beans, Cashew Nuts, Sesame Seeds, Ginger, Hibiscus Flower etc. for year round export trade and improved profit margins.
- Support Small and Medium Enterprises (SMEs), Clusters and Associations to upscale and expand export operational capacities and upgrade production systems.
- Diversify and increase the contribution of non-oil export revenue and value-added exports for sustainable economic development.
- Broaden the scope of export financing instruments and complement other non-oil export financing schemes.
- Increase foreign exchange generation in the Nigerian economy.
Eligibility Criteria
Eligible Borrowers/Beneficiaries
- Duly registered Small and Medium Enterprises (SMEs), Clusters and Associations in Nigeria with satisfactory credit reports obtained from at least two (2) Credit Bureau (in line with the provisions of the CBN Circular BSD/DIR/GEN/CIR/04/014 dated April 30, 2010);
- Small and Medium Enterprises (SMEs), Clusters and Associations engaged in the production and/or marketing of export goods and services;
- Small and Medium Enterprises (SMEs), Clusters and Associations that are registered with the Nigerian Export Promotion Council (NEPC);
- Small and Medium Enterprises (SMEs), Clusters and Associations that belong to a relevant Commodity Export Association
Eligible projects/Transactions
Eligible Transactions that shall qualify for the support of NEXIM under this Facility include:
- Viable Transactions connected with export of goods wholly or partly manufactured in Nigeria, which are exportable under the laws of Nigeria;
- Export-generating imports, principally raw materials, equipment and spare parts required by a manufacturing exporter;
- Export of viable services (consultancy, tourism, transport, event planning, hospitality etc.);
- Transactions of value added production supported by States/Regions and promoted by Private Sector Companies.
- Anchor Borrower - Type arrangement for exports in collaboration with Co-operative societies and other community-based support arrangements.
- Projects with regional export promotion/ export development objectives and / or promoted by States as a private sector export enterprise.
The Facility shall not support the financing 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, placed under the export/import prohibition list of the Federal Government.
Features of SMEEF
a. The Facility shall not be more than 70 percent of the total Project/Transaction cost.
b. The Facility shall have a single obligor limit of not more than N100.0 Million.
The Small and Medium Enterprise Export Facility (SMEEF) shall have a maximum tenor of;
- 1 year with the option of roll- over once for Working Capital
- 2-7 years for Project Finance
The under-listed are acceptable Repayment Terms for the Small and Medium Export Enterprise Facility (SMEEF):
- Transaction-Based-Repayment
- Clean-Up Cycle of 30 Days for Principal and Interest
- Clean-Up Cycle of 60 Days for Principal and Interest
- Clean-Up Cycle of 90 Days for Principal and Interest
- Clean-Up Cycle of 120 Days for Principal and Interest
- Clean-Up Cycle of 180 Days for Principal and Interest
- Quarterly payment of Interest and repayment of Principal
- Quarterly payment of Interest and Bullet repayment of Principal