Thursday, May 9, 2013

■ CANADA: Nigerian ExIm Bank, Export Development Canada discussing possible short term financing for Nigerian aviation sector.

The Nigerian Export Import Bank, NEXIM, and Export Development Canada (EDC), Canada's export credit agency, are exploring the prospects of a partnership to provide short term financing to Nigeria's aviation sector.

Arik Air's planned Hangar in Lagos
Arik Air's planned MRO Hangar
The development was announced Nigerian Vice President, Namadi Sambo, during a recent visit to Toronto on the occasion of the Canada-Nigeria Investment Conference, CNIC 2013.

During talks with various Canadian firms and financial institutions, she expressed interest in further exploring the possibility of expanding and extending the ECA's project to finance activities that would facilitate the onward sale of Canadian goods & services to Nigerian companies, especially in the aviation sector, mining, agro-processing.
"In the short term, the EDC would be interested in providing further financing to the huge and profitable aviation sector in Nigeria where it already has a valuable client that is progressively leading private sector investment in the sector," she said.
Source [The Premium Times]

She noted that with NEXIM's operational frameworks, ownership structure, and the Foreign Investment Promotion Agreement, FIPA, signed by Nigeria and Canada in Ottawa prior to the Conference, the conditions are right for a mutually beneficial collaboration between both agencies, with NEXIM acting as a veritable channel for appropriate EDC-sourced funding.

The Federal Airports Authority of Nigeria (FAAN) announced in January a Nigerian government initiative to buy 30 aircraft as part of its plans to improve viability and safety in the local industry. Funding is to come via the USD1billion (NGN300billion) Aviation Intervention Fund set up by government and disbursed by the Central Bank of Nigeria (CBN) in conjunction with Bank of Industry (BOI). Thus far, ATR, Embraer and Bombardier have all made their pitches in one form or another, though no specific aircraft supplier has been announced for the deal.

Bombardier, the Canadian aircraft manufacturer, are beginning to make inroads into Nigeria, with Arik Air (W3) the company's most prolific Nigerian operator. Arik had previously announced plans to build an MRO hangar at Lagos Murtala Muhammed International partnering both Bombardier and Boeing.