NCDMB PORTAL

Plot 975 Cadastral Zone AO, Central Business District, Abuja

Phone: (+234) 9 4603630 – 9

Email: neximabj@neximbank.com.ng

NCDMB PORTAL reportgov.ng

Rediscounting & Refinancing Facility (RRF)

This facility is available at a concessionary rate to assist commercial and merchant banks to provide short-term finance in support of exports, thereby directly or indirectly influencing the cost of credit to the export sector; enhance its competitiveness and to encourage banks to finance the procurement of non oil export goods, raw materials, and processing.

This facility is made available in local currency to exporters through their bankers (Participating Banks) and is available for tenors between 60–180 days for Pre or Post Shipment Rediscounting Facilities and a maximum tenor of one year for Refinancing Facilities.

Any commercial bank acceptable to NEXIM Bank.

For exporters to be eligible they must satisfy the following:

  • Be duly incorporated/registered in Nigeria as limited liability companies or cooperative societies (manufacturing, trading or service companies).
  • Be existing production units with a minimum of 50% export orientation evidenced by previous and existing export orders or any other evidence acceptable to NEXIM, or;
  • Be new units with a minimum of 50% export orientation evidenced by export commitment(s) or any other evidence acceptable to NEXIM.

The tenor in respect of pre- and post-shipment rediscounting shall not exceed 120 days and 60 days respectively. For combined pre- and post-shipment finance, the maximum tenor shall not exceed 180 days.

The Refinancing Facility shall not exceed 12 months and covers instalments of long-term financing i.e. export debentures, term loans, falling due within a year of the date of application.

The participating bank would assume 100% of the Facility's credit risk and it is expected that prior collateral arrangements will be agreed with the exporter to secure its lending.

An application for rediscounting covering either pre-shipment, post shipment or combined pre- and post-shipment periods shall be made to NEXIM by means of a letter signed by at least two authorised signatories of the bank supported by the documents itemised below:

  • Evidence of an export order, e.g. Letter of Credit, sales contract, confirmed order.
  • Evidence of export credit, this should be a bill of exchange drawn by the bank on, and accepted by the exporter. A copy of which should be marked "ORIGINAL HELD AT THE DISPOSAL OF NEXIM, NOT FOR SALE". The bill shall be for an appropriate tenor with the discount rate clearly stated on the bill.
  • Completed Return on Export Finance Portfolio.
  • Written confirmation by the exporter to the bank indicating whether the sales contract or export order is being part financed.

For export credit rediscounting covering specifically the post-shipment period, the following documentation is required:

  • Evidence of an export order, e.g. Letter of Credit; sales contract, confirmed order by a reputable local agent of an established buyer.
  • Evidence of shipment, e.g. clean on-board bill of lading.
  • Evidence of shipment on credit terms e.g. copy of the foreign usance (term) bill.

Upon approval, the facility is disbursed to the participating bank on submission of the following documents:

  • Promissory Note
  • Irrevocable Transfer Order addressed to the Director of Banking Operations, Central Bank of Nigeria, Lagos.
  • A copy of the approval letter.

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