“ACCESS TO FINANCE FROM NEXIM” A PRESENTATION BY THE NIGERIAN EXPORT IMPORT BANK (NEXIM) AT THE WORKSHOP FOR SMEs ON BUSINESS GROWTH OPPORTUNITY AND ACCESS TO FINANCE. AUGUST 27, 2015 MANUFACTURINGAGRICULTURE SOLID MINERALS SERVICES

OUTLINE o MANDATE AND FUNCTIONS OF NEXIM o NEXIM’S PRODUCT AND SERVICES o HOW TO ACCESS NEXIM FACILITIES o CONCLUDING REMARKS

BACKGROUND AND MANDATE OF NEXIM  The Nigerian Export – Import Bank was established by Act 38 of 1991 as Nigeria’s Export Credit Agency (ECA). The Bank is equally owned by the Central Bank of Nigeria(CBN) and the Federal Ministry of Finance Incorporated (MOFI).  The Bank has the broad mandate of diversifying the Nigerian economy and developing the external sector through the provision of the following services: o Credit Facilities in both local and foreign currencies, o Risk-bearing facilities - Export Credit Guarantee & Export Credit Insurance o Business Development and Financial Advisory Services o Trade & Market Information  The Bank also complements in attracting foreign investment capital towards the development and growth of targeted industries and strategic sectors of the economy through availment of concessional lines of credit, co-financing arrangements and facilitation of buyers’ / suppliers’ credit for the purpose of adoption and acquisition of new and clean technologies, assess to patents/intellectual properties, etc 3

NEXIM’s Funding Strategy and Market Focus Market Focus ECOWAS Manufacturing Agriculture (i.e. Agro-processing) Solid Minerals Services (Transport, Tourism & Entertainment) Complement the role of the commercial banks and other Development Financial Institutions By focusing on the unserved markets Rest of Africa Asia Developed Economies NEXIM’S Product & Market Focus 4

NEXIM’S PRODUCTS & SERVICES  Direct Lending Facility  NEXIM grants short, medium and long term fixed rate loans to exporters directly and/or under co- financing / syndication arrangement with eligible banks  Loans are granted to Nigerian exporters in both local and foreign currencies up to 80% of total project cost. 5

 Foreign Input Facility  NEXIM grants short, medium and long term fixed rate loans in foreign currency to participating banks on behalf of their export clients for the importation of raw materials, capital equipment and spare parts needed for the production of goods for export  Under this facility, the exporter must use at least 60% (by value) of local raw materials or intermediate goods/services produced in Nigeria for its products  Or local value addition must exceed 50% 6 NEXIM’S PRODUCTS & SERVICES

 Local Input Facility o NEXIM grants short, medium and long term fixed rate loans in local currency to participating banks on behalf of their export clients o Objective is to provide medium/long term finance in local currency to exporters through commercial banks for  Setting up new export projects  Revitalising, acquisition of additional assets for modernisation and/ or expansion of existing production units for exports  Acquisition, rehabilitation and or expansion of plantations and processing of exportable products  Acquisition of spare parts and packaging materials for manufacture of exportable products 7

NEXIM’S PRODUCTS & SERVICES  Rediscounting and Refinancing Facility  Provides short term finance to DMB in support of exports  The objective is to influence the cost of credit to the export sector, enhance its competitiveness and encourage banks to finance the procurement of non- oil export goods, raw materials and processing  It is made available in local currency to exporters through their banks and is available for a maximum tenor of one year at concessionary rate determined by NEXIM 8

NEXIM’S PRODUCTS & SERVICES  Stocking Facility  The purpose is to assist manufacturing exporters to have adequate working capital to stock needed raw materials that are mainly seasonal in nature and achieve optimal level of production all year round  It is made available in local (or foreign currency) to exporters through their banks and is available for a maximum term of one year at a fixed rate determined by NEXIM 9

NEXIM’S PRODUCTS & SERVICES  Export Credit Guarantees  This facility is designed to protect banks in Nigeria against the risk of non-payment for loans or advances granted to exporters to meet short term export contracts  Export Credit Insurance  This is designed to protect exporters in Nigeria against the risk of non-payment for goods and services exported on credit terms.  Risk covered include commercial, economic or political risk 10

NEXIM’S PRODUCTS & SERVICES  ECOWAS Trade Support Facility (ETSF)  NEXIM launched the ECOWAS Trade Support Facility (ETSF) through which funding intervention is provided to exporters, especially small scale traders exporting into the ECOWAS sub-region.  Approximately N1billion is expected to be disbursed in 2014 under this programme  Benefits include:  Increased volume of recorded trade  Deepening regional trade and achieving market diversification  Creating jobs and investment opportunities in line with Government’s transformation agenda.  Improved payment system. 11

NEXIM’S PRODUCTS & SERVICES  The Creative/ Entertainment Industry Scheme  The industry is one of the largest employer of labour –currently employing over 2million people.  Nigeria’s Nollywood industry is the most prolific in the world and 3rd largest in revenue (grossing US$430m annually)  NEXIM has been playing a leading role in developing this industry in line with Mr President’s policy initiative  The Bank extends loans to eligible companies in the value chain, including support for improvement of distribution infrastructure/platforms and establishment of new digital production studios. 12

ACCESSING NEXIM’S FACILITIES 13 Eligibility Criteria The Bank’s facilities are available to any registered, creditworthy export Company/Cooperative Society, incorporated in Nigeria, registered with the Nigerian Export Promotion Council (NEPC). Documentation Required i.Application Form ii.Certified True Copy of Certificate of Incorporation, Certified True copies of CO2 & CO7; and Memorandum & Articles of Association; iii.Current three year tax clearance; iv.Three (3) year Audited Accounts and most recent management accounts, where applicable v.Feasibility Study/Business Plan including Projected Cash flow, P&L and vi.Board Resolution Authorizing Company to borrow and Letter of Authorization for NEXIM to seek information on Company; vii.Registration with NEPC; viii.Proforma Invoice; Export Contract or MOU and Evidence of past export(s) if any; ix.Valuation Report of the proposed security;

CONCLUDING REMARKS  The Bank’s objective is to increase intervention in the underserved, but key sectors of the economy in line with the Federal Government’s Transformation Agenda.  NEXIM is particularly interested in working with SMEs and since inception has supported over 1,000 SMEs, many of which currently rank among the top 100 exporters in Nigeria  We, therefore, welcome applications from bankable projects and exporters in our target sectors as identified above.  Also, the Bank wishes to invite the informal / small traders as well as large export merchants to avail themselves of the newly introduced ECOWAS Trade Support Facilitate (ETSF), which is designed to deepen and expand Nigeria’s trade in the ECOWAS sub- region, in addition to helping small exporters to expand their businesses and bring them into the formal sector. 14

OUR CONTACT Head Office Plot 975, Cadastral Zone A0, Central Business District, Abuja Website: Branches: Lagos Area Office, Calabar Area Office Kano Area Office 18A Gerard Road, Calabar Free Trade Zone Fatima House, Ikoyi, Cross River State Murtala Ikoyi, Lagos State Kano State 15

Q & A 16

THANK YOU FOR YOUR ATTENTION