NEXIM Loan Registration 2022 for Business, Apply Now following the guideline below..
NEXIM Loan Registration Portal 2022 for Business – Act 38 of 1991 established NEXIM as an Export Credit Agency (ECA) with a N50, 000,000,000 (Fifty Billion Naira) share capital held equally by the Federal Ministry of Finance and the Central Bank of Nigeria.
Direct Facility Loan – NEXIM Loan for Business
NEXIM would grant short, medium, and long term fixed or floating rate loans to exporters directly and/or through co-financing/syndication arrangements with eligible banks under the Direct Lending Facility.
Direct loans are available to help exporters finish their export sales by providing working capital, as well as facilities and funds for equipment acquisition. Nigerian services include, but are not limited to, consultancy, tourism, and oil and gas services. Loans of up to 80% of the total project cost are given directly to a Nigerian exporter in both local and foreign currencies.
About the Facility – NEXIM Loan Registration Portal for Business
The following items are not eligible for financing:
- Armaments, ammunitions and other military equipment:
- Psychotropic drugs and narcotic
- All items prohibited by international conventions or environmental constraints
- Ponographic and obscene materials; and
- Items prohibited for importation/exportation by prevailing government policies/guidelines
Participating Bank – NEXIM Loan for Business
Borrower – NEXIM Loan for Business
A creditworthy limited liability company, cooperative society, existing/new production units with at least 50% export orientation, or an existing provider of export services must be the borrower. The borrower must demonstrate that the loan will help him grow or develop his export business.
Collateral Requirements – NEXIM Loan for Business
The security may be one or more of the following:
- Bank guarantee or insurance bond
- Landed property belonging to the borrower/directors of the company in a location acceptable to NEXIM;
- First lien or fixed charge on machinery and equipment of the borrower;
- Share certificates of quoted companies acceptable to NEXIM;
- Investment certificates or commercial bills acceptable to NEXIM; and
- Floating charge on moveable property of the borrower or directors of the company.
The following documents should accompany the application:
- A certified true copy of Certificate of Incorporation;
- Three years audited statement of accounts or a complete set of management report signed by two directors of the company for the accounting period for which their audited statement of account is not available;
- A feasibility study report/business plan;
- Certified true copies of forms CO2 and CO7;
- Certified true copies of proforma invoice(s) for new/used equipment from a reputable supplier(s);
- Evidence of licence/permit from relevant agencies where applicable;
- Evidence of export commitment or any other arrangement acceptable to NEXIM;
- Copy of Environmental Impact Assessment Report;
- Evidence of availability of counterpart funding (for new projects);
- Copies of title of documents that are available as security; and
- Any other document that may be required.
Interest Payment – NEXIM Loan for Business
Interest payments on project-related financing shall be made in the currency of disbursement and in arrears on outstanding balances beginning within six months of the first disbursement or as determined at the time of disbursement on a semi-annual basis. Subsequent payments must be made on the loan balances’ instalment dates.
Fee & Charges – NEXIM Loan for Business
- Commitment fee: A commitment fee of 0.5% p.a. shall be charged on the undisbursed balance of a direct loan. This fee begins to accrue 60 days after loan signature and shall be synchronized with interest payments;
- Administrative fee: A once only fee of 1.0% flat shall be charged calculated on the loan amount and payable on acceptance of loan offer. For short term facilities of less than 180 days, the fee shall be 0.5% flat.
- Legal fee: Where the service of external legal counsel is used in the preparation of loan documents, borrower will be required to pay the legal fees of 0.5% calculated on the loan amount;
- Others: The borrower would be obliged to pay the charges with respect to monitoring visits, stamp duty, other duties or taxes payable in relation to the loan.
NEXIM Loan for Business Disbursement
- NEXIM shall disburse approved funds upon fulfillment of all conditions precedent to draw down;
- For approvals that involve importation, NEXIM shall establish the Letter of Credit for the transaction;
- In the case of importation of equipment, NEXIM reserves the right to do witness testing or engage the services of a consultant to do so on its behalf, at the expense of the beneficiary project, before shipment; and
- For locally sourced items, disbursement shall be made directly to the supplier of the item.
Loan Repayment – NEXIM Loan for Business
For project-related financing, NEXIM may consider repayment terms of up to three (3) years from the date of initial disbursement. Repayment terms for short-term facilities are limited to 365 days, while repayment terms for letters of credit confirmation/refinancing are limited to 360 days.
Payments for project-related financing are typically made in a set number of equal and consecutive instalments within six months of the moratorium period’s expiration date. Following the moratorium period, loan principal instalments and interest repayments would be synchronised.
All principal repayments must be made in the same currency as the disbursement and in accordance with the repayment schedule established when the loan was granted.
In the event of a default on any facility or missed loan instalments, NEXIM will charge a penalty rate of 4% p.a. for short-term facilities and 1% p.a. for medium- and long-term facilities, in addition to the rate at which the initial loan was given and for the period of the default. Prior to applying payments to principal amounts owed, all payments received will be used to defray interest charges.
NEXIM Bank Loan Requirements
Other Aspect – NEXIM Loan for Business
- Exporters’ equipment may be subject to NEXIM’s request for an acceptable technical report or warranty.
- With the proceeds of this facility, no new equipment should be purchased from sources other than the manufacturers or major/accredited distributors;
- NEXIM will review the entire transaction and may recall the facility if discrepancies are discovered between information provided on the Proforma-Invoice and what is physically delivered.
- NEXIM will set borrowers’ limits on an annual basis.
- If necessary, an extension of the facility’s tenor or payment of past-due loan instalments may be granted;
- If the funds are used for purposes other than those for which they were granted, or if there are other forms of abuse such as false declarations, NEXIM will immediately recall the funds and submit a written report to the Central Bank of Nigeria. The use of funds disbursed will be monitored by NEXIM.
- NEXIM will conduct regular project visits to ensure that the loan’s terms are followed;
- Where applicable, NEXIM will require the exporter to domiciliate the export proceeds; and
- For loans with a term of five years or more, NEXIM will be represented on the Company’s Board of Directors for the duration of the loan.
How to Apply Interested Persons should vis NEXIM Loan Registration Portal by clicking here and apply