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Requirements for Nexim Bank Loans

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  • Post last modified:09.03.2023

Nexim Bank loans were created to aid businesses that are in the export-import sector for the growth and expansion of their businesses.

The Nigerian Export-Import Bank provides short and medium-termed loans as well as short-term guarantees for loans that are granted by banks in Nigeria to promote the export-import business and help guarantee the safety of their business against commercial risks and losses.

These NEXIM Bank loans benefit their customers by providing means of insurance, credit facilities, management funds, and trade information to support the business.

There are various export loan facilities accommodated by Nexim Bank. This article will take you through each type and guide you on what loan type will be most suitable for your export business.

 

Nexim Bank Loans

Below are the available Nexim Bank loans with their requirements:

 


Direct Lending Facility

Limit

Interest

1-4% p.a

Tenor

1-3 years

This NEXIM Bank loan holds short-, medium- and long-term loans, either fixed or floating rate loans. In this loan, exporters are provided with working capital/facilities and funds for the procurement of equipment.

It is available to exporters who are directly and/or under co-financing or syndication arrangements with eligible banks. Services under this facility include tourism, oil, and gas services and must be provided by Nigerians.

This NEXIM Bank loan is granted to Nigerian exporters in both local currencies up to 80% of the project’s total cost.

A duration of 3 years is considered on repayment terms. For short-term facilities, there is a maximum of 365 days (1 year). Project-related financing payments are made equally with consecutive installments within 6 months from the expiration date of the moratorium period (a delay period of loan payment).

 

Requirements for NEXIM Bank Direct Lending Facility

  • Must be a credit-worthy limited liability company, a cooperative society, an existing/new production unit with a minimum of 50% export orientation, or an existing provider of export services.
  • The borrower must establish that the loan will develop or expand his export business.
  • A certified copy of the certificate of incorporation.
  • Three years audited statement of accounts.
  • A feasibility study/report of the business plan.
  • Certified copies of forms CO2 and CO7.
  • Certified copies of proforma invoice(s) for new/used equipment from reputable suppliers.
  • Evidence of license/permit from relevant agencies where applicable.
  • Evidence of export commitment or any other arrangement.
  • Copy of environmental impact assessment report.
  • Evidence of availability of counterpart funding.
  • Copies of title of documents available as security.
  • Any other document that may be required.

 

Collateral Requirements for NEXIM Bank Direct Lending Facility

  • A bank guarantee or an insurance bond 
  • Landed property owned by borrower or any director of the company in a location acceptable by NEXIM
  • Fixed charge on machinery/equipment of the borrower
  • Share certificates acceptable to NEXIM
  • Investment certificates acceptable to NEXIM

 

NEXIM Bank Direct Lending Facility Application Channels

You can apply for this Nexim Bank loan through the following:

  • You can apply by submitting directly to NEXIM bank
  • Through commercial banks


Foreign Input Facility

Limit

Interest

1-4% p.a

Tenor

1-3 years

This NEXIM Bank loan is a short-term, medium-term, or long-term fixed-rate loan in foreign currencies that NEXIM grants to banks for their export clients for the importation of raw materials, equipment, and spare parts needed for the production of goods for export.

A tenure of 7 years is considered for this NEXIM Bank loan with a moratorium period of up to 2 years, depending on the loan amount and the project being financed.

For spare parts and raw materials, repayment is within 2 years. While for packaging materials, a duration of 1 year is given.

NEXIM determines interest rates at different periods. A default interest rate is charged where risk arises and is set on the facility or due installments for the default period (risk).

  • A commitment fee of 1% p.a. is charged.
  • A once-only administrative fee of 0.75% shall be charged and calculated on the loan amount.
  • Legal fees are not charged if the loan documents are prepared by NEXIM. But if the legal services are external, the participating bank will pay the incurred legal fees.
  • The participating bank pays other charges including stamp charges and taxes.

The exporter in this facility must apply to his bank the participating bank will now appraise the application in line with their lending rules. Once the participating bank approves, a formal loan request is then forwarded to the Managing Director or the Chief Executive of NEXIM Bank duly signed by two authorized persons. Other documents required by NEXIM should accompany the formal loan request.

Requirements for NEXIM Bank Foreign Input Facility

  • Exporters must be registered in Nigeria as limited liability companies or cooperative societies.
  • Must produce goods and services for direct export.
  • Use of at least 60% of local raw materials or intermediate goods/services produced in Nigeria for its products.

 

Collateral Requirements for NEXIM Bank Foreign Input Facility

For banks willing to participate and benefit from this facility, the following collateral requirements must be met:

  • Irrevocable standing orders for the  amount of the facility 
  • Fixed and/or floating charge over all assets of the project and/or landed properties of the promoter with NEXIM’s interest noted.
  • A lien over the proceeds of the export transactions financed with NEXIM’s interest noted
  • Marketable financial instruments

 

NEXIM Bank Foreign Input Facility Application Channels

You can apply for this Nexim Bank loan through the following:

  • You can apply by submitting directly to NEXIM bank
  • Through commercial banks


Export Development Facility (EDF)

Limit

Interest

9% p.a

Tenor

9 years

This export facility was created to drive funding more towards sectors especially those in Small and Medium Enterprises (SMEs). It has the aim of broadening the export market destinations for Nigeria. This NEXIM Bank loan was created to support export enterprises in the non-oil export value chain.

The qualifications for funding eligible transactions under the EDF are:

  • Transactions connected with the export of goods manufactured in Nigeria.
  • Transactions relating to goods/services exportable under Nigerian laws.
  • Transaction of specific projects. Production, supply for manufacturing, and packaging for exports.
  • Transactions of value-added production supported by states/regions and promoted by private sector companies.

Collateral is also required for participating banks to secure their lending. Approved applications will be required to provide adequate collateral to cover exposure of not less than 150% of the loan value.

 

Requirements for NEXIM Bank Export Development Facility

  • Application form
  • Request from the project promoter seeking funding under the EDF
  • Certificate of Business incorporation
  • An audited statement of accounts for the last 3 years
  • Management Account for existing companies and statement of Affairs for start-ups
  • Business plan of the project
  • Relevant permits/licenses
  • Verifiable export orders/contracts
  • Companies of executed warehouse arrangements with acceptable collateral managers
  • Any other document required

 

NEXIM Bank Export Development Facility Application Channels

You can apply for this Nexim Bank loan through the following:

  • You can apply by submitting directly to NEXIM bank
  • Through commercial banks


Women And Youth Export Facility (WAYEF)

Limit

Interest

9% p.a

Tenor

5 years

This facility is targeted towards supporting women and youth (between ages 18 & 35 years) in the non-oil exports value chain. Its aim is to increase funding to women and youth so as to broaden Nigeria’s export basket and facilitate regional industrialization for value-added exports.

Other objectives include supporting women and youths in upscaling, expanding operational capacities, and stimulating and increasing deliberate funding to indigenous Women and Youth.

This NEXIM Bank loan broadens Nigeria’s export basket and facilitate regional industrialization for value-added exports. It also helps support Women and Youth towards upscaling and expanding export operational capacities.

This NEXIM Bank loan has a tenor of 2 years for working capital and 5 years for project financing. WAYEF grants a maximum of 9% p.a. with all interest rates being inclusive. An application fee of N20,000 is required and is non-refundable.

 

Requirements for NEXIM Bank WAYEF

  • Application letter, completed NEXIM application form, know-your-customer form, and mandate cards
  • Board resolution to borrow
  • Registration documents
  • Valid export contracts/local purchase orders
  • Proforma invoice from a reputable supplier
  • Audited accounts statements and most recent account management statement
  • Valid tax clearance certificate
  • Valid means of identification of the company directors
  • Profile of the company directors and management staff
  • Certificate of registration with Nigerian Export Promotion Council (NEPC) and licenses from relevant agencies
  • Collateral is required

 

NEXIM Bank WAYEF Application Channels

You can apply for this Nexim Bank loan through the following:

  • You can apply by submitting directly to NEXIM bank
  • Through commercial banks

Small And Medium Enterprise Export Facility (SMEEF)

Limit

Interest

9% p.a

Tenor

7 years

SMEEF is made to provide adequate funding to support small and medium enterprises involved in the non-oil export trade. The aim of this facility is to boost funding for SMEs in a bid to expand Nigeria’s export pool.

This NEXIM Bank loan has an obligor limit of N100 million, not exceeding and will not be anything more than 70% of the total project/transaction cost.

Objectives of this facility include;

  • To improve export-oriented Small and Medium Enterprises and associations’ access to concessionary finance to expand and diversify the non-oil sectors.
  • To encourage reinvestments while attracting new investments
  • To create and sustain more jobs in the non-oil export sector
  • Broaden the scope of export financing instruments and complement other non-oil export financing schemes.
  • To increase foreign exchange generation in Nigeria

 

Borrowers/Beneficiaries Eligibiltiy Criteria 

  • Small and Medium Enterprises must be duly registered in Nigeria with credit reports obtained from at least two credit bureaus.
  • Businesses should be engaged in producing and/or marketing goods and services.
  • SMEs and Associations should be registered with the Nigerian Export Promotion Council (NEPC).
  • SMEs and Associations should belong to a relevant commodity and export association.

 

Project/Transaction Eligibility Criteria

  • Export-generating imports, such as raw materials, equipment and spare parts required by a manufacturing exporter
  • Anchor Borrower – Type arrangement for exports in collaboration with Cooperative societies and other community-based support arrangements
  • Export of viable services (consultancy, tourism, transport, event planning, hospitality etc.)

SMEEF has a tenure of 1 year for working capital, with an option of roll-over, and a tenure of 2-7 years for project finance.

The facility also allows a maximum moratorium of 2 years on principal repayment. There is an interest rate of 9% p.a. inclusive of all charges. Legal charges are to the account of beneficiary projects.

 

Requirements for NEXIM Bank SMEEF

  • Application form
  • Request from the project promoter seeking funding under the EDF
  • Certificate of Business incorporation
  • An audited statement of accounts for the last 3 years
  • Management Account for existing companies and statement of Affairs for start-ups
  • Business plan of the project
  • Relevant permits/licenses
  • Verifiable export orders/contracts
  • Companies of executed warehouse arrangements with acceptable collateral managers
  • Any other document required

 

NEXIM Bank SMEEF Application Channels

You can apply for this Nexim Bank loan through the following:

  • You can apply by submitting directly to NEXIM bank
  • Through commercial banks

Local Input Facility

Limit

Interest

5-15%

Tenor

3 years

NEXIM Bank grants short-, medium- and long-term fixed-rate loans to participating banks in local currencies on behalf of their export clients. This NEXIM Bank loan type is called Local Input Facility. It was set up with the purpose of:

  • Acquisition of additional assets for modernization and/or expansion of existing production units for exportation.
  • Setting up brand-new export projects.
  • Acquisition of spare parts and packing materials.

 

Requirements for NEXIM Bank Loan Input Facility

  • Certified True Copy of Certificate of Incorporation
  • Exporter’s Audited Statement of Accounts for the past three years (where applicable).
  • Feasibility Study Report for a new project or a Project Brief for an ongoing concern.
  • Certified True Copies of Forms CO2 and CO7.
  • True Copy of Proforma Invoice(s) for new/used equipment from a reputable supplier(s).
  • Evidence of Licences/Permits from relevant Agencies, where applicable.
  • Evidence of export commitment or any other arrangement acceptable to NEXIM.
  • A copy of the Environmental Impact Assessment Report, where applicable.
  • Any other document that NEXIM may require

 

NEXIM Bank Local Input Facility Application Channels

You can apply for this Nexim Bank loan through the following:

  • You can apply by submitting directly to NEXIM bank
  • Through commercial banks

Nigerian Creative Arts and Entertainment Industry Loans

Limit

Interest

5-15%

Tenor

7 years

This facility was developed by the Nigerian Export-Import Bank to facilitate the export of services and support the growth and development of the entertainment industry in Nigeria. The Bank has provided the necessary funding to aid this development, namely the Nigerian Creative Arts and Entertainment Industry Loans.

This NEXIM Bank loan has a penal rate of 4% p.a. and 1% p.a. is charged for both short-term facilities and medium/long-term facilities respectively. A commitment fee of 0.5% is charged. An administrative fee of 1.0% flat shall be calculated on the loan amount. A legal fee of 0.5% is charged when an external legal counsel is used.

  • Companies involved must operate in the entertainment and creative art industry, must not be an oligarch business, and must not be government-owned.
  • Must be under the creative arts and entertainment value chain. The following are segments under the facility:
  • Music
  • Film
  • Television
  • Radio
  • Fashion
  • Distribution/Exhibition Infrastructure and Platforms
  • Development of production platforms and facilities
  • Acquisition of hi-tech production equipment and ancillary facilities.

 

Requirements for NEXIM Bank Loan Input Facility

  • Application letter
  • Company incorporation documents
  • Business plan
  • Valuation report on collateral
  • Land and building
  • Equipment
  • Intellectual property
  • Past audited accounts and most recent management account
  • Evidence of marketing/distribution
  • Proforma invoices
  • Bills of quantity/production budge

 

NEXIM Bank Local Input Facility Application Channels

You can apply for this Nexim Bank loan through the following:

  • You can apply by submitting directly to NEXIM bank
  • Through commercial banks

NEXIM Bank Loan Calculator

If you are feeling lucky, take some minutes to calculate how much you will pay back before applying for any using the below NEXIM Bank loan calculator:

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NEXIM Bank Loan FAQs

How do I apply for a loan from NEXIM Bank?

Firstly, you can apply directly to NEXIM by submitting all required documents directly to the bank. Upon approval of your application, the bank will administer your loan.

Secondly, you can apply through your commercial bank. Here, you can submit the relevant documents to the bank of your choice. Once your application is approved, the bank will disburse and monitor the loan facility.

Can a new/start-up company apply for a loan?

Yes, they can. Application for loans as a new company is also acceptable, however, the credit limit will be lower than that of already companies already established.

Are there any other fees attached to the NEXIM Bank loans?

There are fees that come with the loans and sometimes even the process of acquiring said loan. Those fees include, commitment fees, administrative fees, legal charges, and other charges included if required.

How long will it take for a loan to be disbursed?

Once all the requirements have been fulfilled and submitted, it can take between 4-12 weeks for the processing, approval and disbursement of a loan. 

Are there other documents required for a loan asides the application form?

A number of documents are required to being processing your application. Depending on the credit facility you wish to apply for, these supporting documents differ.

To find out what a facility requires, read through this article.

How can I get more information on NEXIM Bank loans?

To find out more details on any NEXIM Bank credit facility, check its credit listing page

NEXIM Bank is a credit solution for Nigerian businesses in the import-export sector. It not only provides loans for such businesses but aims to support non-oil sectors and improve the diversification of the nation’s wealth. 

The bank also considers women, youth, the creative industry, and start-ups to aid their development through its facilities. 

The available NEXIM Bank facilities are listed in this loan. If you wish to find other credit options, you can see loans from other providers.

Lois Samari
You are the first in our research hence, we rallies around doing rigorous checks, testing and analysis to help you make a good decision on products and services. Meanwhile, items providers' final views are superior to ours.
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