1. + FINANCIAL SUPPORTFOR SHEA PRODUCTS- MANUFACTURINGAGRICULTURE THE ROLE OF NEXIMA PRESENTATION BY THE NIGERIAN EXPORT -IMPORT BANK (NEXIM)SOLID MINERALS SERVICESAT THE GLOBAL SHEA PRODUCTS CONFERENCE & EXHIBITION HELD AT SHERATON HOTEL, ABUJA 4TH -6TH MARCH, 2013

2. +2 INTRODUCTIONOUTLINE ROLE OF NEXIM IN PRODUCT DEVELOPMENT VALUE PROPOSITION CONCLUDING REMARKS 3. + INTROCUCTIONNigeria is predominantly an agrarian economy, with theAgric. Sector contributing about 40% of GDP andemploying over 60% of the labour force.In spite of this, the Oil and Gas sector continues to dominategovernment and export revenues, accounting for about70% and 95%, respectively.Given the challenges of oil dominance, particularly in viewof decreasing demand by the United States, and discovery ofoil by competing nations, the Federal Government, underthe current Transformation Agenda seeks to diversify theeconomy through increased production and exports of non-oil products. 4. + INTROCUCTIONCurrently, Nigerias non-oil export revenue is insignificant.Of the total export revenue of N14.23trillion (US$93.3bn) in2011, with the oil sector accounting for 96.6% and a paltry3.4% for non-oil.Even more disturbing is that although Agricultural productsconstitute 54% of non-oil exports, only a few agriculturalcommodities such as Cocoa, Rubber and Cotton featured onthe list of exports.While Nigeria is a major producer of many other crops suchas Shea products, the preponderance of trade in theinformal sector tends to exclude such products fromstatistical data. 5. + INTROCUCTIONIn order to develop Shea products, in addition toincreasing access to market and finance, there is the needfor concerted efforts to put structures in place tofacilitate data generation for planning, and engenderindustry growthIt is against the background of the foregoing that NEXIMis supporting this Global Conference, along with manyother partners. 6. + THE NIGERIAN ECONOMY SECTORAL6CONTRIBUTION TO GDP Others2%Services19% Agric40% Trade 19%Petroleum 15%Manufacturing4% Solid Minerals 1% 7. + SECTORAL DISTRIBUTION OF NIGERIAS NON-OIL7 EXPORTS OthersSolid Minerals4%1%Semi Manufactured30% Manufactured Agriculture11%54% 8. +AGRICULTURAL EXPORTS BY SECTOR 8others Cocoa Beans29.41% 36.41%fish/Shrimp 6.16% RubberCotton 14.01%14.01% 9. BACKGROUND AND ROLE OF NEXIM The Nigerian Export Import Bank was established by Act+38 of 1991 as Nigerias Export Credit Agency (ECA). TheBank is equally owned by the Central Bank of Nigeria(CBN)and the Federal Ministry of Finance Incorporated(MOFI). TheBanks broad mandate include the provision of thefollowing:Credit Facilities in both local and foreign currencies,o Risk-bearing facilities - Export Credit Guarantee &Export Credit Insuranceoo BusinessDevelopment and Financial AdvisoryServiceso Trade & Market Information 10. +NEXIMS ROLE CONTD TheBank 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 PRODUCTSExport Credit FinanceRediscounting & Refinancing Facility (RRF) This is an interbankproduct designed to liquefy the export credit transactions of banks throughthe provision of a window to rediscount export bills finance and/orrefinance their export credit portfolioForeign 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 forexports. Local Input Facility (LIF) This is the local variant of FIF 11 12. FINANCIAL OPTIONS FOR PRODUCERS AND TRADERS+ OF SHEA PRODUCTSStocking Facility (SF) This is an interbank or direct lending facilitydesigned to enable processors stock adequate raw materials that areseasonal in nature to keep their production at optimal levels during off-season of inputs.Direct Lending Facility (DLF) this is a funding window purveyed directlyto exporters who meet meets the Banks minimum eligibility criteriaECOWAS Trade Support Facility (ETSF) This facility is developed tosupport intra-regional exporters as well as promote formal trade anddeepen payment system within ECOWAS, thereby facilitating economicintegration and cooperation under ECOWAS Trade Liberalization Scheme12 13. + NEXIMS VALUE PROPOSITION NEXIM seeks to work with principal players, includingproducers, investors and traders to develop the SheaProduct industry In addition to existing services, we are desirous ofdeveloping suitable financial products, targeted at theentire 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 forthe purpose of acquisition of modern machinery andequipment 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 governments 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 NEXIMNEXIMs 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 tonsNEXIM supported the sector, under the Sesame Seed Merchant Programme through which it Sesame Seed: disbursed over N1.2 billion 16. + ACCESSING NEXIM FACILITIES The Banks facilities are available to any registered, creditworthyEligibilityexport Company/Cooperative Society, incorporated in Nigeria,Criteria registered with the Nigerian Export Promotion Council (NEPC). Application Form Certified True Copy ofCertificate of Incorporation, Board Resolution AuthorizingCertified True copies of CO2 & Company to borrow andCO7; and Memorandum &Letter of Authorization forArticles of Association; NEXIM to seek information on Current three year tax Company;clearance; Registration with NEPC; Proforma Invoice; Export Documentation Three (3) year AuditedAccounts and most recent Contract or MOU and Evidence Requiredmanagement accounts, where of past export(s) if any;applicable Valuation Report of the FeasibilityStudy/Businessproposed security;Plan including Projected Cashflow, P&L and 17. + CONCLUDING REMARKS The Banks objective is to increase intervention in the underserved, but key sectors of the economy in line with the Federal Governments 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 Nigerias 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.ngLagos Area Office,Calabar Area Office Kano Area OfficeBranches:31D, Thompson Avenue,Calabar Free Trade ZoneFatima House,Off Glover Road, Cross River StateMurtala Ikoyi,Lagos State Kano Stateneximlag@neximbank.com.ng neximcepz@neximbank.com.ngneximkao@neximbank.com.ng 19. + THANK YOU FOR YOUR ATTENTION 19