Requirements for applying for The Nigerian Export-Import (NEXIM) Bank Loan
1. Be a Nigerian-owned export-oriented enterprise.
2. Have a valid export contract.
3. Have a viable business plan.
4. Provide evidence of adequate collateral to secure the loan.
5. Have a good credit history.
6. Be registered with relevant regulatory agencies and have necessary licenses and permits to operate in your sector.
7. Provide financial statements for the past three years.
8. Provide evidence of tax payment for the past three years.
9. Provide a detailed project implementation plan, including milestones and timelines.
10. Provide evidence of project viability, including market demand and potential profitability.
11. Provide a comprehensive feasibility study for the project.
12. Provide evidence of compliance with environmental and social standards.
13. Provide any other documentation or information that NEXIM Bank may request during the loan application process.
How to Apply for The Nigerian Export-Import Bank (NEXIM) Loan
Determine Eligibility: Check if you meet the eligibility criteria for the type of loan you want to apply for. You can find the eligibility requirements on the NEXIM website or by contacting the bank directly.
Prepare Documents: Gather all the necessary documents required for your loan application. This includes a completed loan application form, a business plan or project proposal, financial statements, tax clearance certificate, and other relevant documents.
Complete Application Form: Fill out the loan application form provided by NEXIM. The form can be obtained from the bank's website or any of its offices.
Submit Application: Submit your completed loan application form and supporting documents to the nearest NEXIM office. You can also submit your application online through the bank's website.
Wait for Review: NEXIM will review your loan application and conduct due diligence to assess your creditworthiness and the viability of your project or business.
Receive Loan Offer: If your loan application is successful, NEXIM will send you a loan offer with the terms and conditions of the loan.
Accept Loan Offer: Carefully review the loan offer and accept it if you agree with the terms and conditions.
Provide Collateral: Provide the required collateral as specified in the loan offer.
Disbursement of Funds: Once all the necessary documentation and collateral have been provided, NEXIM will disburse the loan funds to your account.
The Various Funding Options Provided by The Nigerian Export-Import Bank (NEXIM)
The Stocking Facility (SF)
The Stocking Facility (SF) is an initiative of NEXIM Bank designed to provide short-term financing to Nigerian exporters engaged in the export of commodities and agricultural products. The facility is aimed at supporting exporters in Nigeria by providing them with access to financing to help them meet their working capital requirements.
The SF facility offers financing for a range of export-related activities, including purchase of raw materials, processing and packaging of commodities, warehousing and storage, and transportation and logistics. The facility also provides access to technical assistance services to help exporters build their export skills and knowledge.
The SF facility offers financing up to N1 billion with a maximum tenor of 360 days. The facility provides flexible repayment terms to suit the cash flow of the borrower, with monthly, quarterly, or semi-annual repayment options available.
Term Credit Facility
The Nigerian Export-Import Bank (NEXIM) offers term credit facilities to Nigerian exporters, aimed at providing financial support to exporters to expand their businesses and enhance their competitiveness in the international market. The term credit facility is a loan facility that has a defined period of repayment, typically between 1-5 years.
The Inter-State Road Transit Scheme (ISRT)
The Inter-State Road Transit Scheme (ISRT) is an initiative of the Economic Community of West African States (ECOWAS) aimed at promoting regional trade and integration by facilitating the movement of goods across West African borders. The scheme allows for the free movement of goods in transit across ECOWAS member states, without the requirement for the payment of duties and taxes at each border crossing.
In line with the ISRT, NEXIM Bank provides financing to Nigerian exporters who transport their goods across West African borders. The bank's ISRT financing provides exporters with a pre-shipment facility that covers the cost of goods in transit, including transportation, insurance, and other related expenses. This facility ensures that Nigerian exporters have the necessary funds to transport their goods across borders, without the need to pay duties and taxes at each crossing.
The NEXIM ISRT financing provides Nigerian exporters with a cost-effective and efficient way to transport their goods across West African borders. By providing this financing, NEXIM is helping to promote regional trade and integration and support the growth of non-oil and gas exports in Nigeria.
The NEXIM ECOWAS Inter-State Road Transit Scheme (ISRT) financing is a valuable financing option for Nigerian exporters looking to transport their goods across West African borders. The financing covers the cost of goods in transit for up to 180 days, providing exporters with the necessary funds to transport their goods without worrying about the cost of transportation and related expenses. With this financing, NEXIM is supporting regional trade and integration and contributing to the growth and diversification of the Nigerian economy.
The Women and Youth Export Facility (WAYEF)
The Women and Youth Export Facility (WAYEF) is an initiative of NEXIM Bank aimed at providing financial support to Nigerian women and youth entrepreneurs engaged in non-oil export businesses. The facility is designed to promote the economic empowerment of women and youth in Nigeria by providing them with access to financing and other support services to help them grow their export businesses.
The WAYEF facility provides financing for a range of export-related activities, including product development, market research, export promotion, and trade fairs and exhibitions. The facility also provides access to capacity building and technical assistance services to help women and youth entrepreneurs build their export skills and knowledge.
To be eligible for the WAYEF facility, the entrepreneur must be a Nigerian woman or youth aged between 18 and 35 years, engaged in a non-oil export business, and have a valid export contract. The entrepreneur must also have a viable business plan and meet NEXIM Bank's credit criteria.
The WAYEF facility offers financing up to N50 million with a maximum tenor of five years and a grace period of up to 12 months. The facility provides flexible repayment terms to suit the cash flow of the borrower, with monthly, quarterly, or semi-annual repayment options available.
Small and Medium Enterprise Export Facility (SMEEF)
The SMEEF facility offers financing for a range of export-related activities, including product development, market research, export promotion, and trade fairs and exhibitions. The facility also provides access to capacity building and technical assistance services to help SMEs build their export skills and knowledge.
The SMEEF facility offers financing up to N1 billion with a maximum tenor of five years and a grace period of up to 12 months. The facility provides flexible repayment terms to suit the cash flow of the borrower, with monthly, quarterly, or semi-annual repayment options available.
The NEXIM Bank Small and Medium Enterprise Export Facility (SMEEF) is a critical financing option for SMEs in Nigeria engaged in non-oil export businesses. The facility provides them with access to financing and other support services to help them overcome the challenges of exporting and grow their businesses. By promoting the growth and development of SMEs in Nigeria, the SMEEF facility is contributing to the country's economic growth and diversification.
Local Input Facility
The Nigerian Export-Import Bank (NEXIM) also provides a local input facility to support Nigerian manufacturers in sourcing local raw materials for their production processes. The local input facility is a loan facility provided to Nigerian manufacturers to finance the purchase of locally sourced raw materials, components, and other inputs.
Foreign Input Facility (FIF)
The Nexim Foreign Input Facility (FIF) is a financing facility given by the Nigerian Export-Import Bank (NEXIM) to finance the importation of raw materials, packaging materials, and other inputs required for export goods production.
The FIF is offered to Nigerian exporters that have a viable export-oriented project and need foreign inputs to improve the quality and competitiveness of their products in the global market. Non-exporters who create goods and services with the potential to generate foreign exchange for the Nigerian economy can also use the facility.
The FIF loan amount is often dependent on the borrower's foreign exchange needs and is subject to bank clearance. The facility's interest rate is competitive and varies depending on the financial market and the borrower's credit risk.
The FIF payback time is flexible, ranging from six months to three years, based on the nature of the project and the borrower's cash flow predictions. The facility is also collateralized by appropriate security, which could be a lien on the export revenue or a mortgage on the applicant's property
Export Development Fund (EDF)
This facility is designed to provide short-term financing to Nigerian exporters to support the production, processing, and export of non-oil goods.
Export Credit Guarantee Facility (ECGF)
This facility is designed to provide export credit insurance to Nigerian exporters to protect them against the risk of non-payment by overseas buyers.
Rediscounting and Refinancing Facility (RRF)
This facility is designed to provide short-term financing to Nigerian banks to support their lending to export-oriented businesses.
Investment Guarantee Facility (IGF)
This facility is designed to provide investment guarantees to Nigerian investors in export-oriented businesses to protect them against the risk of loss.
In conclusion, requesting for a loan from the Nigerian Export-Import Bank (NEXIM) involves an in-depth knowledge of the application procedure as well as the requirements for eligibility. Potential loan applicants ought to be ready to provide precise information about their business's financial records, along with a detailed business strategy. NEXIM provides a variety of loan solutions to assist Nigerian export-driven enterprises, and borrowers ought to carefully evaluate the terms and conditions of each product prior to making a final decision. However, with careful planning and close attention to details, a NEXIM loan can be a valuable tool for Nigerian businesses seeking expansion and growth.
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