IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: No inception date

State loan

The African Export-Import Bank (Afreximbank) and the Nigerian Export-Import Bank (NEXIM) implemented an intervention programme in the Nigerian cocoa sector. The core scope of this intervention is to revive the national cocoa sector and enable it, reemerge as Nigeria’s top non-oil export foreign exchange earner.

The core elements of the specified intervention are the following:

  • Provision of financing to Nigerian cocoa producers that will enable them, satisfy their working capital requirements - i.e. working capital requirements that are necessary for enhancing the production capacity and the utilisation of idle capacities of shut down productive assets. 
  • Provision of medium to long term financing to Nigerian cocoa producers for the purpose of:
    • upgrading their existing production facilities
    • establishing new processing and manufacturing facilities (while enhancing market access to processors for higher value-added products).
  • Collaboration between Afreximbank and other Nigerian development finance institutions and commercial banks for the purpose of providing support to the national Nigerian cocoa sector.
  • Collaboration between Afrexim, NEXIM and other relevant institutions with the purpose of:
    • issuing of cocoa bonds to help improve yields by supporting import of agro inputs
    • replanting with high yielding varieties in order to make the sector more competitive
  • Structuring Afreximbank's Africa Cocoa Initiative (AFRICOIN) to redress the current challenges impacting the Nigerian the cocoa sector.

 

The Nigerian Export-Import Bank (NEXIM) is a Nigerian export credit agency owned by the  Nigerian Central and Federal government. The primary scope of the Bank is to provide export credit guarantees and export credit insurance for exports of Nigerian products and services.

African Export–Import Bank, with headquarters in Cairo (Egypt) is a financial institution established with the purpose of promoting finance trade within the African continent and trade between Africa and other continents. 

The shareholder structure of the African Export-Import Bank in the following:

Class "A" Shareholders - African governments, African central banks, and African regional institutions.
Class "B" Shareholders - African private investors and African financial institutions.
Class "C" Shareholders - Non-African financial institutions, export credit agencies, and private investors.
Class "D" Shareholders - Other institutions and individuals.

 

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

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