Nexim Loan Application Portal Reopen for New Application
NEXIM Loan Application Portal Open to New Applications – NEXIM was established by Act 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 central Bank of Nigeria
Direct Facility Loan
Under direct credit facility, NEXIM will provide short, medium and long term fixed or floating loans to exporters under direct agreements and/or joint financing/bundling with eligible banks.
Direct loans are available to help exporters sell their exports by providing working capital and/or funding for the purchase of facilities and equipment.
Services, including but not limited to advice travel 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
The following are not eligible for loan:
- 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
Banks wishing to participate in the NEXIM Joint Venture Program must be in good financial condition for 3 years as certified by their audited account and meet the additional criteria set by NEXIM from time to time. NEXIM is invited to enter into an integration agreement. , The member bank should be prepared to provide working capital as per the requirements of the borrower and subsequent outstanding costs.
Borrower – NEXIM Loan for Businesses:
The borrower must be a trustworthy limited company, cooperative, existing/new production unit. or existing export service providers with at least 50% export status. The borrower must prove that the loan will develop or expand their export 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.
IMPORTANT Register – SMEDAN: SMEDAN Registration for Loan Application
Interest Payment – NEXIM Loan for Businesses
Reopen the Nexim Loan Application Portal for a new application – for project-related finance. Interest will be payable on the outstanding balance, beginning within six months of the first published date and on a semi-annual basis. Distribution time will be fixed. The next repayment will be made on the due date of the outstanding loan.
Fee & Charges – NEXIM Loan for Businesses
Commitment Fee: 0.5% per annum, the Commitment Fee will be charged on the outstanding direct loan balance. These fees begin to accumulate 60 days after the loan is signed and synchronized with interest payments.
• Management fee: 1.0% one time fee. Flat loans are awarded on an amount and are paid upon acceptance of the loan offer. For facilities less than 180 days old, the fee is fixed at 0.5%.
Legal Fee : In case of using outside legal advisor to prepare credit documents The borrower must pay a legal fee of 0.5% calculated from the loan amount.
• Others: The borrower must pay for travel expenses. Stamp duty plus other taxes or taxes related to debt.
Disbursement – NEXIM Loan for Businesses
· 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 Businesses
NEXIM may consider repayment terms of up to three (3) years from the date of the first allotment for project-related financing. for short term facilities Repayment terms are up to 365 days, while for credit confirmation / letter refinancing. Repayment will be up to 360 days.
for project-related finance Payments are generally made in a fixed amount of equal and consecutive installments within six months of the corpse’s expiration date. after the mortgage period The principal payment of the principal and interest on the loan are synchronized.
Reopen the Naxim Loan application portal for new applications – all major repayments will be in the form of a distribution and will meet the repayment deadline set at the time the loan is disbursed. In the event of default on any credit facility or outstanding balance, NEXIM will charge 4% annually. The penalty rate for short-term facilities and 1% P.A. for medium- and long-term facilities is higher than the rate. that provides an initial loan and for a default period All payments received will be used to pay interest before the outstanding principal is filed.
Other Aspect – NEXIM Loan for Businesses
- NEXIM may request for an acceptable technical report or warranty on the equipment acquired by exporters;
- No new equipment should be purchased with the proceeds of this facility from sources other than the manufacturers or major/accredited distributors;
- Where discrepancies are noticed between information provided on the Proforma-Invoice and what is physically delivered, NEXIM shall review the entire transaction and may recall the facility immediately;
- NEXIM shall on an annual basis set limits for borrowers;
- Where necessary an extension of the tenor of the facility or due loan installments may be granted;
- Where the funds are used for purposes other than for which they were granted, or other forms of abuse such as false declaration etc, NEXIM shall immediately recall, and written report will be made to the Central Bank of Nigeria accordingly; NEXIM shall monitor the utilisation of funds disbursed;
- NEXIM shall undertake regular project visits to ensure adherence to the conditions of the loan;
- Where applicable, NEXIM shall require the domiciliation of export proceeds by the exporter; and
- For loans with tenure of five years and above, NEXIM shall be represented on the Board of the Company throughout the duration of loan.
How to Apply
Interested Persons should click the link and apply