Nigeria

There are no formal restrictions on cover.

Cover facilities are available on a case-by-case basis. In addition, cover is available for project finance and other structured finance deals, where necessary based on countertrade transactions, as well as for fully internationally financed transactions.
For credit transactions with public buyers the uninsured percentage under buyer credit cover is 10%. The amount of the uninsured percentage’s mark-up may only be passed on to the exporter. In connection with supplier credit cover the uninsured percentage cannot be reduced to 5%.

For transactions with private buyers bank security is required if the foreign buyer’s creditworthiness is inadequate.

For transactions with public buyers a guarantee from the Ministry of Finance or the central bank is always required. For medium/long-term transactions with public buyers additional, project-related risk mitigation measures are required.

For medium/long-term transactions with public buyers which are established as private sector organizations the same collateral requirements as for private buyers apply.

The assessment of a bank for acceptance as a guarantor or borrower is carried out case by case on the basis of informative documents and taking into account the risk involved.

Country information on commercial practices, business climate, market analyses, law, import procedures, customs duties and international projects and tenders can be found on the website of Germany Trade & Invest (gtai, https://www.gtai.de).

The most important GTAI country information on Africa can be found at a glance on the Africa Business Guide (German version, www.africa-business-guide.de).

You can find more detailed information on the G20 initiative „Compact with Africa“ (www.compactwithafrica.org).