Non-Oil Export Stimulation Facility

The objectives of the Facility are to:

• Improve access of exporters to concessionary finance to expand and diversify the non-oil export basket;
• Attract new investments and encourage re-investments in value-added non-oil exports production and non-traditional export;
• Shore up non-oil export sector productivity and create more jobs;
• Support export-oriented companies to upscale and expand their export operations as well as capabilities;
• Diversify and increase the level of contribution of non-oil exports revenue towards sustainable economic development; and
• Broaden the scope of export financing instruments.

The Nigerian Export-Import Bank (NEXIM) shall be the Managing Agent of the Non-Oil Export Stimulation Facility (NESF). It shall be responsible for the day-to-day administration of the Facility and rendition of periodic reports on the performance of NESF to CBN.

Eligible Borrowers/Beneficiaries

Only export-oriented enterprises shall be eligible under the NESF, which shall be:

• A company duly incorporated in Nigeria under Companies and Allied Matters Act (CAMA).
• An Enterprise with verifiable export off-take contract(s).
• An Enterprise with satisfactory credit reports from at least two Credit Bureaus in line with the provisions of CBN Circular BSD/DIR/GEN/CIR/04/014 dated April 30, 2010.
• Eligible Bank Asset (EBA) purchased by Asset Management Corporation of Nigeria (AMCON), that may by special approval of the CBN Management, be allowed to participate with respect to acquired projects of national economic importance, proven potentials to export, good prospects to attract new investors and ability to repay EBA obligations to AMCON.
• The applications shall be in compliance with CBN circulars BSD/DIR/GEN/LAB/07/015 and BSD/DIR/GENLAB/07/034 on "Prohibition of Loan Defaulters from Further Access to Credit Facilities in the Nigerian banking System" and "Guidelines for Processing Requests from DMBs to Extend New/Additional Credit Facilities to Loan Defaulters and AMCON Obligors" dated June 30, 2014 and October 10, 2014 respectively.

Eligible Transactions

Eligible transactions that shall qualify for funding under the NESF shall include:

• Export of goods wholly or partly processed or manufactured in Nigeria;
• Export of commodities and services, which are permissible and excluded under existing export prohibition list;
• Imports of plant & machinery, spare parts and packaging materials, required for export-oriented production that cannot be produced locally;
• Export value chain support services such as transportation, warehousing and quality assurance infrastructure;
• Resuscitation, expansion, modernization and technology upgrade of non-oil exports industries; and
• Stocking Facility/Working capital.

The following shall be eligible to participate under the Facility:

• Deposit Money Banks
• Development Finance Institutions (DFIs) except NEXIM

The Facility covers:

• Documentation Requirement
• Processing of NESF Request
• Approval Process
• Collateral Requirement
• Participation Agreement

Monitoring and Evaluation of projects funded under the facility shall include:

• On-site and Off-site verification and routine monitoring of projects under the facility by CBN, NEXIM and PFIs during the loan period.
• Provision to all concerned parties with the report of monitoring exercise.
• Periodic evaluation of the activities of all participating Financial Institutions and beneficiary projects to ensure adherence to the objectives of the facility.

1. The Central Bank of Nigeria (CBN)

The CBN shall:

• Issue the operating guidelines for the Facility;
• Invest in the Debenture issued by NEXIM for the purpose of the scheme;
• Determine the lending limits and applicable rates; and
• Review the facility guidelines as may be deemed necessary from time to time.

2. Nigerian Export-Import Bank (NEXIM)

NEXIM shall:

• Act as the Managing Agent of the Facility and assess/review projects to confirm eligibility and viability;
• Provide appropriate institutional arrangement for the processing of applications, disbursement, utilization, monitoring and recovering the loans granted under the Facility;
• Facilitate capacity building of stakeholders under the scheme;
• Render periodic returns on the performance of each loan availed under the Facility (in prescribed formats as may be specified by CBN); and
• Recommend amendments to operating guidelines (when necessary).

3. The Participating Financial Institutions (PFIs)

The PFIs shall:

• Present reviewed requests of applicants to NEXIM under the Facility based on normal business considerations and lending principles;
• Ensure timely disbursement of availed funds to approved projects at the specified rates;
• Render periodic returns in prescribed formats as may be specified by the CBN and NEXIM from time to time;
• Monitor and report project implementation/operations during the loan period;
• Comply with the operating guidelines of the Facility;
• Bear the credit risk on loans availed to beneficiaries under the NESF.

4. Borrower/Beneficiary

The borrower/beneficiary shall:

• Utilize the funds for the purpose for which it was granted;
• Adhere strictly to the terms and conditions of the loan and comply with all relevant laws, regulations, etc., necessary to the continued operation of its business;
• Make the project site(s) and its operational records available for inspection and verification by the officials of PFI, CBN and NEXIM;
• Provide periodic reports on the status of the project in prescribed format as well as periodic financial statements in line with extant company registration regulations;
• Comply with the operating guidelines of the Facility; and
• Repay maturing loan obligations in line with approved repayment schedule.