Three Nigerian and Chinese companies have signed an agreement to facilitate financing for Nigerian businesses seeking to import machinery, equipment and other productive assets from China.
The Tripartite Cooperation and Market Development Agreement on Nigeria Import Trade Financing and Supply Transactions was signed in Abuja by Zhengzhou Youngshell International Supply Chain Management Co. Ltd, Megavalues Integrated Services Ltd and CUSH Promotions Ltd.
The agreement is designed to connect qualified Nigerian importers, manufacturers, businesses, educational institutions and government establishments with Chinese manufacturers, suppliers and financial institutions.
Under the arrangement, participating Chinese lenders may offer financing at indicative annual interest rates of between five and eight per cent, with repayment periods ranging from about three months to five years or longer, depending on the transaction and type of assets involved.
The parties, however, said financing would remain subject to lenders’ due diligence, equity contributions, acceptable security, regulatory requirements and approval by participating financial institutions.
The initiative is aimed at addressing the difficulty Nigerian businesses face in accessing affordable long-term capital for machinery acquisition and expansion of productive capacity.
The proposed financing covers industrial and agricultural equipment, complete production lines, automotive and transport assets, renewable energy systems, construction equipment, laboratory and educational equipment, as well as digital and technical training infrastructure.
Under the agreement, Nigerian importers will identify their equipment or goods requirements, while CUSH Promotions will coordinate preliminary engagements.
Zhengzhou Youngshell will facilitate contacts with Chinese manufacturers and suppliers, including the provision of quotations, technical specifications and supply contracts.
Megavalues will coordinate the preparation of sales contracts between importers and Zhengzhou Youngshell, while participating Nigerian financial institutions will conduct local due diligence and liaise with the relevant Chinese lenders.
The companies said the initiative would prioritise productive assets capable of supporting local manufacturing, agro-processing, technology adoption and job creation, rather than promoting dependence on finished consumer goods.
Universities, polytechnics, technical institutions and research organisations will also be targeted under the arrangement, particularly those requiring laboratories, workshops, renewable energy systems, mobility solutions and specialised equipment.
The agreement was signed by Jianhua Sun, Managing Director of Zhengzhou Youngshell; Fred Ogwazu, Managing Director and Chief Executive Officer of Megavalues Integrated Services; and Ossai Ilome, Managing Director and Chief Executive Officer of CUSH Promotions.
