Ex-Im Bank Approves $300 Million for 14 Nigerian Banks to Support U.S. Exports to Nigeria
WASHINGTON, D.C. — Following recent positive developments in the Nigerian banking sector, the Export-Import Bank of the United States (Ex-Im Bank) has approved a total of $300 million, allocated among 14 Nigerian banks, to support U.S. exports to Nigeria. The consolidated facility will expedite the processing of short- and medium-term Ex-Im Bank financing for the purchase of U.S. goods and services by Nigerian buyers.
The initiative follows an Ex-Im Bank study of the 14 banks, assessing the impact of the recent Nigerian bank consolidation on financing opportunities in the Nigerian market.
Ex-Im Bank has experienced an increase in demand for financing from both U.S. exporters to Nigeria and their Nigerian buyers, said Ex-Im Chairman and President (Acting) James H. Lambright. This initiative will enable us to support these growing business opportunities in the Nigerian market while supporting U.S. jobs.
Ex-Im Bank's total exposure in Nigeria is currently $215 million.
The Nigerian banks reviewed are: Access Bank, Afribank, Diamond Bank, Ecobank, First Bank, Guaranty Trust Bank, Intercontinental Bank, Investment Banking & Trust, Nigerian International Bank, Oceanic Bank, Standard Chartered Bank Nigeria, Stanbic Bank Nigeria, Union Bank, and Zenith Bank.
Each of the banks has been pre-approved for amounts of $10 million and higher, which may be renewed. By delegating authority to the vice president of Ex-Im Bank's Trade Finance and Insurance Division to commit the coverage, the Bank will further speed the processing of transactions.
Under the new program, Ex-Im Bank will insure short-term transactions involving exports of consumer goods, raw materials, spare parts, commodities, and small capital equipment with a repayment period of 180 days. Transactions involving the export of capital equipment or services may be covered under Ex-Im Bank's medium-term insurance and guarantees, with repayment tenors of up to five years.
The Nigerian banks are not limited to the new financing facility, and are eligible to apply for additional Ex-Im Bank financing under other programs.
U.S. exporters interested in learning more about this financing facility and how it can be used to support sales of U.S. goods and services to Nigeria may contact the nearest Ex-Im Bank regional office by calling 1-800-565-3946 and selecting option 2.
Ex-Im Bank this year marks its 72nd year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world. The Bank works with commercial lenders to help U.S. companies increase export sales and American jobs and minimize risk by accessing Ex-Im Bank financing and export credit insurance.