Nigerian SME Equipment Financing Facility

Requirement

A specialized equipment financing facility provides $6.5 million in asset-backed loans to Nigerian SMEs acquiring productive machinery and equipment. The facility addresses the critical gap in medium-term financing for capital equipment that constrains SME growth and productivity. Target sectors include manufacturing (production machinery, packaging equipment), agriculture (processing equipment, cold storage), logistics (trucks, warehouse equipment), and healthcare (diagnostic equipment, laboratory machinery). Loan sizes range from $50,000 to $500,000 with tenors of 2-5 years, priced at 18-24% annually in naira-equivalent terms. We seek institutional investors, DFIs, and impact funds seeking exposure to Nigerian SME debt with equipment security. The facility is structured as a special purpose vehicle with senior and mezzanine tranches available. Equipment serves as primary collateral with LTV ratios of 70-80% based on independent valuations. Nigerian SMEs face a $160 billion financing gap, with equipment finance particularly scarce as traditional banks focus on short-term working capital. Asset-backed structures reduce credit risk while enabling productive investment that generates repayment capacity. The facility is managed by a team with 50+ years combined experience in Nigerian equipment finance. Historical portfolio performance shows NPL rates below 5% with recovery rates exceeding 80% on defaulted facilities. Target investor returns of 12-15% USD-equivalent with quarterly distributions.