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 U.S. International Development Finance Corporation (DFC), which replaced the Overseas Private Investment Corporation (OPIC), is America’s development bank which partners with the private sector to finance solutions for the most critical challenges facing the developing world today. 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.

Multilateral Development Banks and Financing Government Sales

Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the multilateral development banks (MDB). A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different multilateral development banks (MDBs), including the World Bank and African Development Bank.

Power Africa

Power Africa is a market-driven, U.S. Government-led public-private partnership aiming to double access to electricity in sub-Saharan Africa. It offers tools and resources to private sector entities to facilitate doing business in sub-Saharan Africa’s power sector. The Electrify Africa Act of 2015 institutionalized Power Africa. Learn more about the full Power Africa toolbox or other opportunities offered by Power Africa.

U.S. Export-Import Bank (EXIM)

EXIM is actively seeking bankable projects to support in Nigeria, and is currently meeting with private developers, banks, and the government on a variety of sectors, particularly those related to infrastructure. EXIM offers direct loans, loan guarantees, and credit insurance tied to U.S. exports.

The U.S. International Development Finance Corporation (DFC)

DFC was established in 2019 through the passage of the Better Utilization of Investments Leading to Development (BUILD) Act, which strengthened and modernized American development finance. The BUILD Act combined the capabilities of the Overseas Private Investment Corporation (OPIC) and the Development Credit Authority which had previously been housed in the U.S. Agency for International Development (USAID). DFC invests across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and female entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights. DFC offers equity financing, political risk insurance, debt financing, and technical development.

U.S. Trade and Development Agency (USTDA)

The U.S. Trade and Development Agency (USTDA) connects the U.S. private sector to infrastructure projects in emerging market by funding feasibility studies, technical assistance, and pilot projects that integrate the innovation and expertise of American companies. USTDA also connects overseas project sponsors with U.S. partners through reverse trade missions, industry conferences, and expert workshops. As of 2021, every $1 USTDA invested in its programs has on average generated $117 in U.S. exports. USTDA has facilitated $76 billion in U.S. exports since its founding in 1992, supporting 4,000 infrastructure activities in 139 countries.

Since 1992, USTDA has supported over 80 activities in Nigeria, which have the potential to leverage more than $15 billion in financing. Overall, USTDA support in Nigeria has resulted in over $375 million total exports.

Grant Activities

• Content Oasis Fixed Wireless Access Feasibility Study: USTDA approved funding for a feasibility study that will support the efforts of Content Oasis Limited to expand internet access to unserved and underserved areas across Nigeria. Content Oasis selected Virginia-based Fraym, Inc. to conduct the study.

• Ekovolt Niger Delta Network Expansion Feasibility Study: A USTDA grant to the Nigerian telecom company Ekovolt Telco Limited funded a feasibility study to expand internet access for underserved communities in the Niger Delta region. The study will include a pilot project to test fixed wireless broadband technology as a solution. Ekovolt selected Georgia-based Vernonburg Group LLC to conduct the study.

• Mobihealth Feasibility Study: A USTDA grant to Mobihealthcare Limited (Mobihealth), a Nigerian telehealth provider, would support the regional expansion of a telehealth solution in Cote d’Ivoire, Ghana, Kenya, and Egypt. This feasibility study will help Mobihealth determine the viability of those markets to expand their solution and increase rural access to healthcare technology and services in Africa. Mobihealth will select a U.S. contractor to complete the study through a competitive that will be posted on USTDA’s website and on SAM.gov.

• Cedarcrest Cancer Treatment Center Feasibility Study: USTDA extended a grant to Cedarcrest Hospitals Limited, a Nigerian private health operator, to support the development of a comprehensive cancer treatment center in Abuja, Nigeria. The Project facility would offer full-range oncology services to include prevention and screening, diagnostics, chemotherapy, immunotherapy, surgical oncology, and radiotherapy. The feasibility study will help Cedarcrest determine technical and financial viability and specify the detailed design and equipment requirements for the implementation of the project. Cedarcrest has selected Ohio-based Utopian Consulting LLC to conduct the study.

Workshops

Regional Healthcare Harmonization Workshop:  USTDA is supporting the Africa Regulatory Convergence for Healthcare Products Workshop Series to support continental alignment with international standards and convergence of regulatory healthcare systems across Africa. This would in turn help to both increase market access for the sales of U.S. healthcare products and improve pharmaceutical and medical device quality and access across the continent.

Reverse Trade Missions (RTMs): USTDA will host a series of an RTM 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.

USTDA is funding an RTM and business briefing to introduce key decision-makers from Nigeria and Senegal’s healthcare sector to U.S. technologies, systems and best practices. This activity will highlight state-of-the-art U.S. medical devices, healthcare technologies, and equipment that may support Senegal and Nigeria as they expand their hospital infrastructure.

Contact:

• Joshua Egba, USTDA representative based in Lagos, Nigeria jegba@ustda.gov

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, nine grants have been issued in Nigeria for mini-grids, solar, biomass, and hydro projects supporting grain milling, cold storage, and other small commercial enterprises.