This month brings promising news for Nigerian entrepreneurs and enterprises as the Nigerian Export-Import Bank (NEXIM) opens its doors to a new wave of opportunities through various available loans.
NEXIM, with its mandate to facilitate the growth of the Nigerian economy through export and import financing, has become a pivotal player in empowering businesses to reach global markets.
The Nigerian Export-Import Bank (NEXIM) is a government-owned bank that provides financial assistance to businesses in the export and import sectors of the Nigerian economy.
The bank’s mission is to promote and support the development of non-oil exports and enhance the competitiveness of Nigerian exporters and importers in the global market.
The NEXIM offers a range of loan products and services to suit the needs and preferences of different types of businesses.
NEXIM Loan Products and Services
The NEXIM has several loan products and services that cater to the needs of various businesses in Nigeria.
Some of these include:
1. NEXIM Export Stimulation Facility (ESF)
The NEXIM Export Stimulation Facility (ESF) is a loan product that targets exporters in Nigeria who need funds to expand their export operations and increase their foreign exchange earnings.
The ESF aims to stimulate and increase the volume and value of non-oil exports from Nigeria and create more jobs and wealth.
Some of the features of the NEXIM ESF are:
- The loan amount ranges from N50 million to N5 billion, depending on the size and type of the business.
- The interest rate is 9% per annum, with a moratorium of up to 2 years and a tenor of up to 7 years.
- The loan can be used for various purposes, such as equipment purchase, working capital, expansion, and modernization.
To be eligible for the NEXIM ESF, you must:
- Be a Nigerian citizen or a registered business entity in Nigeria.
- Have a viable export business or an existing export contract in any sector of the economy except oil and gas.
- Have a bankable business plan and a positive cash flow projection.
- Have a good credit history and collateral.
To apply for the NEXIM ESF, visit the NEXIM website and complete the online application form.
Also, you will provide documents such as your export contract, proforma invoice, feasibility study, and audited financial statements.
Also read: 10 Government Loans Available This Month
2. NEXIM Rediscounting and Refinancing Facility (RRF)
The NEXIM Rediscounting and Refinancing Facility (RRF) is a loan product that targets commercial banks and other financial institutions that lend to exporters.
The RRF provides short-term funding to these lenders to enable them to offer competitive interest rates and longer repayment periods to their export customers.
The RRF aims to improve the liquidity and profitability of the lenders and enhance the access and affordability of export finance for the exporters.
Some of the features of the NEXIM RRF are:
- The loan amount ranges from N100 million to N50 billion, depending on the size and type of the lender.
- The interest rate is 7% annually, with a tenor of up to 360 days.
- The loan can be used for various purposes, such as on-lending, refinancing, and rediscounting.
To be eligible for the NEXIM RRF, you must:
- Be a commercial or financial institution licensed and regulated by the Central Bank of Nigeria (CBN).
- Have a portfolio of export loans or receivables performed and secured by export contracts or invoices.
- Have a good credit rating and satisfactory collateral.
To apply for the NEXIM RRF, you must visit the NEXIM website and complete the online application form.
You must also provide documents such as your export loan portfolio, export contracts or invoices, and financial statements.
3. NEXIM Export Development Fund (EDF)
The NEXIM Export Development Fund (EDF) is a grant product that targets exporters in Nigeria who need funds to develop their export capacity and participate in trade fairs and exhibitions.
The EDF aims to support and encourage the development of new export products and services from Nigeria and create more awareness and visibility for Nigerian exporters in the global market.
Some of the features of the NEXIM EDF are:
- The grant amount ranges from N1 million to N5 million, depending on the size and type of the business.
- The grant is interest-free and non-repayable, with no collateral required.
- The grant can be used for various purposes, such as market research, product development, quality certification, and trade promotion.
To be eligible for the NEXIM EDF, you must:
- Be a Nigerian citizen or a registered business entity in Nigeria.
- Have a viable export business or an existing export contract in any sector of the economy except oil and gas.
- Have a bankable business plan and a positive cash flow projection.
- Have a good credit history and a satisfactory guarantor.
To apply for the NEXIM EDF, you must visit the NEXIM website and complete the online application form.
You will also need to provide some documents, such as your export contract, proforma invoice, feasibility study, and budget breakdown.
3 Benefits of NEXIM Loans
The NEXIM loans offer several benefits to businesses in Nigeria, such as:
1. Access to finance
The NEXIM loans provide businesses the funds to start, grow, or improve their export or import businesses.
The NEXIM loans have flexible terms and conditions, such as low-interest rates, long repayment periods, and minimal collateral requirements, that make them affordable to businesses.
2. Capacity building
The NEXIM loans also allow businesses to enhance their skills and knowledge through various training and mentoring programs.
The NEXIM organizes workshops, seminars, webinars, and online courses on export management, trade finance, and export documentation that help businesses improve their competitiveness.
3. Networking
The NEXIM loans also allow businesses to connect with other stakeholders in the export and import ecosystem, such as buyers, sellers, agents, regulators, and peers.
The NEXIM facilitates networking events, such as trade fairs, exhibitions, conferences, and forums, that enable businesses to showcase their products and services and form partnerships.
Conclusion
NEXIM loans are designed to help you start, grow, or sustain your export or import business.
It plays a pivotal role in fostering economic growth by providing financial support to businesses engaged in international trade, as the availability of these loans opens you up to opportunities for expanding your business.
Take the initiative today, explore your options, and watch your business grow.
