Reopening of the Nexim loan application portal for a new application
NEXIM Loan Application Portal Open for New Applications – NEXIM was established by Law 38 of 1991 as an Export Credit Agency (ECA) with a registered capital of N50,000,000,000,000 (Fifty Billion naira) held by the Federal Ministry of Finance and the Central Bank of Nigeria
Direct Facility Loan
Under the direct credit facility, NEXIM will provide short, medium and long-term fixed or floating loans to exporters under direct agreements and/or joint financing/consolidations with eligible banks.
Direct loans are available to help exporters sell their exports by providing working capital and/or financing for the purchase of plant and equipment.
Services including but not limited to travel advice Oil and gas services provided by Nigerians
Up to 80% of the total project cost is lent directly to Nigerian exporters in local and foreign currencies.
Items not eligible for loan
Are not eligible for the loan:
- Armaments, ammunition and other military equipment:
- Psychotropic and narcotic drugs
- All items prohibited by international conventions or environmental constraints
- Ponographic and obscene documents; and
- Items the import/export of which is prohibited by applicable government policies/guidelines
Banks wishing to participate in the NEXIM joint venture program must be in good financial standing for 3 years, as certified by their audited account and meet additional criteria set by NEXIM from time to time. NEXIM is invited to conclude an integration agreement. , The member bank must be prepared to provide working capital in accordance with borrower requirements and subsequent unpaid costs.
Borrower – NEXIM Business Loan:
The borrower must be a trustworthy limited company, a cooperative, an existing/new production unit. or existing export service providers with at least 50% export status. The borrower must demonstrate that the loan will help develop or expand their export business.
Security can be one or more of the following:
- Bank guarantee or insurance deposit
- Land owned by the Borrower/Company Principals in a location acceptable to NEXIM;
- Lien or fixed charge on Borrower’s machinery and equipment;
- Share certificates of listed companies acceptable to NEXIM;
- Investment certificates or commercial paper acceptable to NEXIM; and
- Floating charge on the movable property of the borrower or directors of the company.
The following documents must accompany the application:
- A certified copy of the certificate of incorporation;
- A three-year audited account statement or a complete set of management reports signed by two directors of the company for the accounting period for which their audited account statement is not available;
- A feasibility study/business plan report;
- Certified copies of forms CO2 and CO7;
- Certified copies of proforma invoices for new/used equipment from one or more reputable vendors;
- Proof of license/permit from relevant agencies, if applicable;
- Proof of export commitment or other arrangement acceptable to NEXIM;
- Copy of the environmental impact assessment report;
- Evidence of availability of counterpart funding (for new projects);
- Copies of title documents available as collateral; and
- Any other document that may be required.
IMPORTANT register – SMEDAN: SMEDAN registration for loan request
Interest payment – NEXIM loan for businesses
Re-open the Nexim loan application portal for a new application – for project related financing. Interest will be payable on the unpaid balance, commencing six months from the first published date and on a semi-annual basis. The distribution time will be fixed. The next repayment will be made when the outstanding loan is due.
Fees and Charges – NEXIM Loan for Business
Commitment fee: 0.5% per annum, the commitment fee will be charged on the outstanding balance of the direct loan. These fees start accumulating 60 days after signing the loan and are synchronized with the interest payments.
• Management fees: 1.0% one-time fee. Flat loans are granted on an amount and are repaid upon acceptance of the loan offer. For installations less than 180 days old, the fee is set at 0.5%.
Legal fees: If an outside legal advisor is used to prepare the credit documents, the borrower must pay legal fees of 0.5% calculated on the amount of the loan.
• Other: Borrower must pay travel expenses. Stamp duty plus other debt-related taxes or levies.
Disbursement – NEXIM Loan for Business
· NEXIM will disburse approved funds as soon as all conditions precedent to the draw have been met;
· For approvals that involve importation, NEXIM will issue the letter of credit for the transaction;
· In the event of material importation, NEXIM reserves the right to carry out control tests or to enlist 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, payment must be made directly to the supplier of the item.
Loan repayment – NEXIM loan for businesses
NEXIM may consider repayment terms of up to three (3) years from the date of first award for project-related funding. for short-term facilities repayment terms are up to 365 days, while for credit confirmation/letter refinance. The refund will be up to 360 days.
for Project Related Funding Payments are generally made in a fixed amount of equal, consecutive installments within six months of the expiration date of the corpse. after the mortgage period The repayment of the principal and the interest of the loan are synchronized.
Re-open the Naxim loan application portal for new applications – all large repayments will be in the form of a distribution and will meet the repayment deadline set at the time of loan disbursement. In the event of a default on a credit facility or an outstanding balance, NEXIM will charge 4% per annum. The malus rate for short-term facilities and 1% PA for medium- and long-term facilities is higher than the rate. which provides an initial loan and for a period of default All payments received will be used to pay interest before any outstanding principal is deposited.
Other Aspect – NEXIM Loan for Business
- NEXIM may request an acceptable technical report or warranty on equipment acquired by exporters;
- No new equipment should be purchased with the product of this installation from sources other than manufacturers or major/accredited distributors;
- In the event of discrepancies between the information provided on the proforma invoice and what is physically delivered, NEXIM will review the entire transaction and may recall the facility immediately;
- NEXIM will annually set limits for borrowers;
- If necessary, an extension of the duration of the facility or the maturities of the loan may be granted;
- When funds are used for purposes other than those for which they were granted, or other forms of abuse such as misrepresentation, etc., NEXIM must immediately call back, and a written report will be made to the Bank. central Nigeria accordingly; NEXIM monitors the use of disbursed funds;
- NEXIM will make regular visits to the project to ensure compliance with loan conditions;
- If necessary, NEXIM will require the domiciliation of the export proceeds by the exporter; and
- For loans with a duration of five years or more, NEXIM will be represented on the Company’s Board of Directors throughout the duration of the loan.
How to register
Interested persons should click on the link and apply