|Approval Date||26 May 2011|
|Signature Date||29 Jan 2013|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The intervention is for an Export-oriented SME Financing Program in Nigeria. The Program supplies multi-sector financing to spur job creation in productive sectors so that export-oriented small and medium enterprises (SMEs) can modernize and expand their operations to be more competitive as Nigeria continues its efforts to diversify its economy away from oil and gas. The funds for the Program will be channeled through Nigerian Export-Import Bank (NEXIM) by way of a multi-tranche sovereign guaranteed line of credit (LoC), subject to performance milestones. An integral component of the Program would be a TA package of up to USD 2.2 million out of the proceeds of the LoC for capacity building at NEXIM as well as at client SMEs.
The general objective of the Program is to further the development of the non-oil industrial sector by making more medium- and long-term finance available to export-oriented SMEs. The proposed Program will support Nigerian government efforts to modernize and diversify the country’s production base and operationalize the recently approved National Policy on MSMEs. The specific aim of the Program is to ensure over the coming two years an adequate flow of medium- and long-term financing via national development finance institutions (DFIs) for export-oriented SMEs investment outlays to restructure, improve and expand efficient operations. A related specific objective of the Program is to build capacity at Nigerian DFIs by making available resources for technical assistance (TA) to improve efficiency and effectiveness of their operations.
The direct beneficiaries of the intervention are Nigerian Export-Import Bank (NEXIM), the Federal Government of Nigeria, as well as MSMEs.
African Development Bank
|Last Update||14 Jun 2021|