1. +
FINANCIAL SUPPORT
FOR SHEA PRODUCTS- MANUFACTURING AGRICULTURE
THE ROLE OF NEXIM
A PRESENTATION BY THE NIGERIAN EXPORT -IMPORT BANK (NEXIM)
SOLID MINERALS SERVICES
AT THE GLOBAL SHEA PRODUCTS CONFERENCE & EXHIBITION HELD AT
SHERATON HOTEL, ABUJA
4TH -6TH MARCH, 2013

2. + 2
 INTRODUCTION
OUTLINE
 ROLE OF NEXIM IN PRODUCT DEVELOPMENT
 VALUE PROPOSITION
 CONCLUDING REMARKS

3. + INTROCUCTION
Nigeria is predominantly an agrarian economy, with the
Agric. Sector contributing about 40% of GDP and
employing over 60% of the labour force.

In spite of this, the Oil and Gas sector continues to dominate
government and export revenues, accounting for about
70% and 95%, respectively.

Given the challenges of oil dominance, particularly in view
of decreasing demand by the United States, and discovery of
oil by competing nations, the Federal Government, under

the current Transformation Agenda seeks to diversify the
economy through increased production and exports of non-
oil products.

4. + INTROCUCTION
Currently, Nigeria’s non-oil export revenue is insignificant.
Of the total export revenue of N14.23trillion (US$93.3bn) in

2011, with the oil sector accounting for 96.6% and a paltry
3.4% for non-oil.

Even more disturbing is that although Agricultural products
constitute 54% of non-oil exports, only a few agricultural
commodities such as Cocoa, Rubber and Cotton featured on

the list of exports.
While Nigeria is a major producer of many other crops such
as Shea products, the preponderance of trade in the
informal sector tends to exclude such products from

statistical data.

5. + INTROCUCTION
In order to develop Shea products, in addition to
increasing access to market and finance, there is the need
for concerted efforts to put structures in place to

facilitate data generation for planning, and engender
industry growth
It is against the background of the foregoing that NEXIM
is supporting this Global Conference, along with many
other partners.


6. + THE NIGERIAN ECONOMY –SECTORAL 6
CONTRIBUTION TO GDP
Others
2%
Services
19% Agric
40%
Trade
19%
Petroleum
15%
Manufacturing
4%
Solid Minerals
1%

7. + SECTORAL DISTRIBUTION OF NIGERIA’S NON-OIL 7
EXPORTS
Others
Solid Minerals 4%
1%
Semi Manufactured
30%
Manufactured Agriculture
11% 54%

8. + AGRICULTURAL EXPORTS BY SECTOR
8
others Cocoa Beans
29.41% 36.41%
fish/Shrimp
6.16%
Rubber
Cotton
14.01%
14.01%

9. BACKGROUND AND ROLE OF NEXIM
 The Nigerian Export – Import Bank was established by Act
+
38 of 1991 as Nigeria’s Export Credit Agency (ECA). The
Bank is equally owned by the Central Bank of Nigeria
(CBN)and the Federal Ministry of Finance Incorporated
(MOFI).
 The Bank’s broad mandate include the provision of the
following:
Credit Facilities in both local and foreign currencies,
o Risk-bearing facilities - Export Credit Guarantee &
Export Credit Insurance
o
o Business Development and Financial Advisory
Services
o Trade & Market Information

10. + NEXIM’S ROLE CONT’D
 The Bank also complements in attracting foreign
investment capital towards the development and
growth of targeted industries and strategic sectors of
the economy through availment of concessional lines of
credit, co-financing arrangements and facilitation of
buyers’ / suppliers’ credit for the purpose of adoption
and acquisition of new and clean technologies, assess to
patents/intellectual properties, etc

11. FINANCIAL OPTIONS FOR PRODUCERS AND TRADERS
+ OF SHEA PRODUCTS
Export Credit Finance
Rediscounting & Refinancing Facility (RRF) – This is an interbank
product designed to liquefy the export credit transactions of banks through
the provision of a window to rediscount export bills finance and/or

refinance their export credit portfolio
Foreign Input Facility (FIF) – This facility is designed to support banks /
exporters with foreign currency loans to import foreign inputs e.g. plant &
equipment, raw/packaging materials, spares, etc needed for production for

exports.
 Local Input Facility (LIF) – This is the local variant of FIF
11

12. FINANCIAL OPTIONS FOR PRODUCERS AND TRADERS
+ OF SHEA PRODUCTS
Stocking Facility (SF) – This is an interbank or direct lending facility
designed to enable processors stock adequate raw materials that are
seasonal in nature to keep their production at optimal levels during off-

season of inputs.
Direct Lending Facility (DLF) – this is a funding window purveyed directly
to exporters who meet meets the Bank’s minimum eligibility criteria

ECOWAS Trade Support Facility (ETSF) – This facility is developed to
support intra-regional exporters as well as promote formal trade and
deepen payment system within ECOWAS, thereby facilitating economic

integration and cooperation under ECOWAS Trade Liberalization Scheme
12

13. + NEXIM’S VALUE PROPOSITION
 NEXIM seeks to work with principal players, including
producers, investors and traders to develop the Shea
Product industry
 In addition to existing services, we are desirous of
developing suitable financial products, targeted at the
entire value chain of Shea products
 We also have relationships with other EXIM Banks,
particularly the US EXIM, Indian EXIM and AFREXIM,
towards availing concessionary lines, particularly for
the purpose of acquisition of modern machinery and
equipment for processing and value addition.

14. + Over the years, NEXIM has embarked on similar
SIMILAR INITITIVES BY NEXIM
intervention to promote key crops and support
government’s initiatives:
To enhance its funding intervention and
ensure the sustainable development of the cashew
 Cashew:
industry, the Bank is in collaborative / partnership
arrangements with cashew processors under the
Nigerian Cashew Cluster Finance Scheme (NCCFS) an
initiative of the African Cashew Alliance facilitated by
African Investors Management Services Ltd and
funded by the West Africa Trade Hub, a USAID funded
project. The Bank had disbursed over N150 million
under the pilot scheme,
 Cumulatively over the years, the Bank has disbursed
about $3.1m and over N260m to the sector.

15. + SIMILAR INITITIVES BY NEXIM
NEXIM’s intervention led to quantum leap in
processing capacity from 20,000 to over 150,000
 Cocoa:
tonnes
NEXIM has financed over 10 Rubber
Processing plants with combined capacity of over
 Rubber:
100,000 metric tons
NEXIM supported the sector, under the
Sesame Seed Merchant Programme through which it
 Sesame Seed:
disbursed over N1.2 billion

16. + ACCESSING NEXIM FACILITIES
The Bank’s facilities are available to any registered, creditworthy
Eligibility export Company/Cooperative Society, incorporated in Nigeria,
Criteria registered with the Nigerian Export Promotion Council (NEPC).
• Application Form
• Certified True Copy of
Certificate of Incorporation, • Board Resolution Authorizing
Certified True copies of CO2 & Company to borrow and
CO7; and Memorandum & Letter of Authorization for
Articles of Association; NEXIM to seek information on
• Current three year tax Company;
clearance; • Registration with NEPC;
• Proforma Invoice; Export
Documentation
• Three (3) year Audited
Accounts and most recent Contract or MOU and Evidence
Required
management accounts, where of past export(s) if any;
applicable • Valuation Report of the
• Feasibility Study/Business proposed security;
Plan including Projected Cash
flow, P&L and

17. + CONCLUDING REMARKS
The Bank’s objective is to increase intervention in the
underserved, but key sectors of the economy in line with the
Federal Government’s Transformation Agenda

NEXIM is particularly interested in working with SMEs and
since inception has supported over 900 SMEs, many of which
currently rank among the top 100 exporters in Nigeria

We, therefore, welcome applications from bankable projects
and exporters of Shea Products

Also, the Bank wishes to invite the informal / small traders as
well as large export merchants to avail themselves of the
newly introduced ECOWAS Trade Support Facilitate (ETSF),

which is designed to deepen and expand Nigeria’s trade in the
ECOWAS sub- region, in addition to helping small exporters to
expand their businesses and bring them into the formal sector.

18. + OUR CONTACTS 18
Plot 975, Cadastral Zone A0,
Head Office
Central Business District,
Abuja
Website: www.neximbank.com.ng
E-mail: neximabj@neximbank.com.ng
Lagos Area Office, Calabar Area Office Kano Area Office
Branches:
31D, Thompson Avenue, Calabar Free Trade Zone Fatima House,
Off Glover Road, Cross River State Murtala Ikoyi,
Lagos State Kano State
neximlag@neximbank.com.ng neximcepz@neximbank.com.ng
neximkao@neximbank.com.ng

19. + THANK YOU FOR YOUR ATTENTION
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