NEXIM Export Credit Guarantee Facility Nigeria

Overview

The Nigerian Export-Import Bank (NEXIM) was established by Act 38 of 1991 as an Export Credit Agency with a share capital of N50 billion. NEXIM's Export Credit Guarantee Facility is designed to protect banks in Nigeria against the risks of non-payment for loans or advances granted to exporters to meet short-term export contracts, protecting against late payment and default risks.

Export Credit Guarantee

Through the Export Credit Guarantee Facility (ECGF), banks are protected against the risks of late payment and default on export-related loans. This guarantee mechanism enables banks to provide more favorable financing terms to exporters, reducing the cost of capital for export-oriented businesses. The facility covers both short-term and medium-term export transactions.

Direct Lending and Export Development Facility

NEXIM offers direct lending with credit advanced for both short or long term (1-3 years), with interest rates that may be fixed or floating. Loans can be disbursed in both local and foreign currencies, and up to 80% of the total cost of a project or transaction can be funded. The Export Development Facility (EDF) provides ₦150 billion in financing, particularly targeting Small and Medium Enterprises (SMEs) to broaden Nigeria's export portfolios.

Eligibility Requirements

Eligible applicants are Nigerian exporters or businesses with export orientation across various sectors. The facility is designed to support both established exporters and SMEs looking to enter or expand their presence in international markets. Companies must demonstrate viable export contracts or export potential to qualify.

Application Process

Applications for the Export Credit Guarantee Facility and direct financing are submitted through commercial banks or directly to NEXIM Bank. Required documentation includes export contracts or letters of credit, business plan with export strategy, proof of business registration, and financial statements. NEXIM facilitates access to international Export Credit Agencies, coordinates syndication with Development Finance Institutions, and provides risk-mitigation instruments including guarantees and commercial risk insurance.

Contact Information

Visit www.neximbank.com.ng for detailed guidelines on the Export Credit Guarantee Facility and Export Development Facility. Contact NEXIM Bank offices or partner commercial banks for application procedures and eligibility assessment.