Following recent positive developments in the Nigerian banking sector, US Ex-Im Bank has approved a total of US$300mn, allocated among 14 Nigerian banks, to support US exports to Nigeria.

The consolidated facility will expedite the processing of short and medium-term Ex-Im financing for the purchase of US goods and services by Nigerian buyers.

The initiative follows an Ex-Im 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 US exporters to Nigeria and their Nigerian buyers,” says Ex-Im chairman and president (acting) James Lambright. “This initiative will enable us to support these growing business opportunities in the Nigerian market while supporting US jobs.”

Ex-Im Bank’s total exposure in Nigeria is US$215mn.

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 US$10mn 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 programme, Ex-Im 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 the 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 programmes.