Nigeria - Project Financing Nigeria - Project Financing
Given foreign currency constraints, funding can be obtained locally from Nigerian banks. To a limited extent, insurance companies, building and property development companies, pension fund companies and other institutional investors can also provide financing.
Private equity firms also exist and can support projects. U.S. government financing agencies are active in Nigeria. The U.S. Trade and Development Agency (USTDA) provides financing for feasibility studies, while the Export-Import Bank (Ex-Im Bank) supports the export of goods made in the United States. The Overseas Private Investment Corporation (OPIC) provides insurance against political risks for U.S. investments overseas as well as project financing. The African Development Bank (AfDB) also grants finance to certain operations of companies exporting goods from Nigeria. The AfDB channels these loans through the CBN to the Nigerian Export‑Import Bank (NEXIM), Bank of Industry (BOI), and licensed export financing banks.
US Export-Import Bank (EXIM)
EXIM is actively seeking bankable projects to support in Nigeria, and is currently meeting or speaking with private developers, banks and the government on a variety of sectors, particularly infrastructure related. EXIM offers direct loans, loan guarantees and credit insurance tied to US exports.
U.S. Trade and Development Agency
The U.S. Trade and Development Agency (USTDA) supports U.S. private sector in development projects in emerging markets at the critical early stages when a project’s technology options and requirements are being defined. USTDA provides grant funding to support project development through technical assistance, feasibility studies and pilot projects for infrastructure projects in key sectors - energy, telecoms and transport.
USTDA’s investments have leveraged over $2.9 billion worth of public and private sector financing in Nigeria alone. USTDA has a U.S. export multiplier of $104 for every $1 programmed, with the agency identifying over $4.9 billion in U.S. exports to emerging economies from USTDA programming in FY 2018 alone.
Workshops and Programs in FY 2019
Access Africa
Access Africa is a partnership between USTDA and U.S. industry leaders to support the development of quality ICT infrastructure and services across Sub-Saharan Africa. Working with public and private sectors across the continent, Access Africa brings together critical stakeholders, and designs targeted programming to advance inclusive, secure, and sustainable connectivity.
Call for Proposals: USTDA has announced a call for initial ICT proposals for funding from project sponsors in Sub-Saharan Africa or U.S. companies working with African project sponsors.
Reverse Trade Missions: USTDA will host a series of three reverse trade missions to connect public and private decision-makers from Sub-Saharan Africa to U.S. ICT technology and service providers to support the region’s infrastructure development goals.
Power Africa
USTDA is an implementing agency of both the Power Africa and U.S.-Africa Clean Energy Finance programs, which seek to increase access to electrical power and support private sector investments in African energy infrastructure. USTDA’s investments under these programs provide critical early-stage support to advance new power generation, transmission and distribution infrastructure. USTDA has provided critical project planning assistance for 63 Power Africa activities, supporting the development of over 1,370MW of new power generation anticipated to generate enough energy to supply 2.6 Million homes across Africa.
In October 2018, USTDA closed a call for initial proposals from project sponsors of clean energy projects in sub-Saharan Africa or U.S. companies working with African project sponsors. USTDA is currently evaluating several Nigerian activities identified in the window.
U.S. Gas Infrastructure Exports Initiative
In November 2017, USTDA, in coordination with LNG Allies, the 27th World Gas Conference, the U.S. Chamber of Commerce Global Energy Institute, as well as other industry members, launched the U.S. Gas Infrastructure Exports Initiative. The Initiative is designed to connect American companies to new export opportunities across the gas value chain in emerging economies. As U.S. liquefied natural gas (LNG) export terminals are coming online, USTDA is expanding its partnership with the American gas industry to generate new LNG exports through the development of gas-related infrastructure in key LNG receiving countries.
Call for Proposals: USTDA announced a call for gas-related project proposals that closed in January 2019 for U.S. companies that have identified project sponsors in high growth emerging markets. USTDA is currently evaluating proposals from Nigerian project sponsors received in the window.
Reverse Trade Mission (RTM), West African Customs Modernization and Trade Facilitation – Winter 2019 (Los Angeles, CA)
USTDA has approved funding for a reverse trade mission (RTM) that would support U.S. private sector participation in the implementation of Customs and Border projects in Sub-Saharan Africa (SSA).
The RTM will build on work underway in Ghana by U.S. Customs and Border Protection (CBP), as a part of the Security Government Initiative (SGI) Joint Country Action Plan. The RTM is anticipated to host up to 15 public sector customs officials from West African nations involved in SGI including Ghana, Nigeria, Cote D’Ivoire, Burkina Faso and Togo. The RTM would highlight U.S. technology and solutions for customs modernization and security, as well as policies and practices that support efficient, secure and transparent customs processing.
Reverse Trade Mission (RTM), Nigerian Agribusiness – Autumn 2019 (TBD)
USTDA has approved funding for a reverse trade mission (RTM) to encourage the implementation of large-scale agribusiness projects in Nigeria utilizing exports of state-of-the-art U.S. technologies and services. Spanning approximately ten business days, up to fifteen public and/or private sector representatives from the Nigerian agribusiness sector will visit approximately three U.S. cities. The itineraries would include a business briefing, meetings with public and private sector representatives from the U.S. agribusiness sector, and relevant site visits.
USTDA Supports Virtual Pipeline Project in Nigeria, Creating Opportunities for U.S. Businesses (September 2018)
USTDA signed a grant for a feasibility study to evaluate the viability of converting associated (flare) gas to compressed natural gas (CNG) and delivering CNG to customers via a virtual pipeline operation in Nigeria. The grantee is Tombia River Energy Company Limited (TREC), a Nigerian commercial gas company specializing in the commercialization and marketing of flared gas to businesses and industries in the Niger Delta region of Nigeria. The feasibility study will be conducted by Texas-based firm Nearshore Natural Gas, LLC.
USTDA Supports Aviation Cooperation with Sub-Saharan Africa (April 2019)
USTDA funded a three-day U.S.-Africa Airport Issues Conference, organized by the American Association of Airport Executives (AAAE) and Airports Company South Africa (ACSA), and supported by the U.S. Federal Aviation Administration (FAA).
The conference convened U.S. industry representatives and high-level aviation officials from several African countries, including Nigeria, to discuss challenges and opportunities in Sub-Saharan Africa’s aviation sector, including safety and security challenges, airport infrastructure public-private partnerships, green initiatives and environmental sustainability, and domestic air service development/intra-Africa airline connectivity.
Contacts:
USTDA Regional Director for Sub Saharan Africa, Heather Lanigan, is based in Washington, DC
USTDA local representative, Joshua Egba is based at the U.S. Consulate in Lagos, Nigeria. jegba@ustda.gov | egbajo@state.gov; www.ustda.gov
Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation is one of the key investors in the 500MW Azura gas-fired power station which is expected to be operational in 2018. OPIC has also invested in the 500 MW Oma gas project. Nova Lumos Corporation received a commitment letter from OPIC for funding to support their business selling rooftop solar kits and has partnered with MTN Nigeria Communications Ltd to sell these kits to MTN consumers who live in remote communities throughout Nigeria. The solution which should be launched in 2017 will help consumers power lights, cellphones, fans, computers, radios, television sets and other small electronic devices at once.
US African Development Foundation (USADF)
USADF has partnered with USAID and GE Africa to promote innovative solutions that develop, scale up or extend the use of proven technologies for off-grid energy, reaching communities not served by existing power grids. Through the “off-grid energy challenge”, grants up to $100,000 are awarded to African companies and organizations. To date, approximately 9 grants have been issued in Nigeria for mini-grids, solar, biomass and hydro projects supporting grain milling, cold storage, and other small commercial enterprises.