ABTAJ CAPITAL NIG. LIMITED are well experienced in the field of Project finance, by funding (financing) series of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure.
Our Project financing loan structure relies primarily on the project’s cash flow for repayment, with the project’s assets, rights, and interests held as secondary collateral. Our Project finance is especially attractive to the private sector because companies can fund major projects off-balance sheet.
Not all infrastructure investments we delved into, we seamlessly identify the investment potential projects from the risks.
Many companies issue traditional debt or equity to undertake such projects.
The project finance structure for a build, operate and transfer (BOT) project includes multiple key elements.
Small and medium enterprises (SMEs) are the backbone of a strong economy and create jobs for millions of people. Their capacity for innovation and their ability to adapt to an ever-changing business environment makes them a vital building block for economic growth and prosperity. SME are of particularly great importance in Nigerian economy, and from our years of experience in the field, ABTAJ CAPITAL NIG LIMITED has long been Amongst the largest SME hub in Nigeria.
Yet, despite its substantial economic value, Nigeria’s SMEs face a large number of challenges, including legal and regulatory issues, slow technology adoption, extra cost of running a small business, an insufficiently skilled workforce and poor financing options.
Most especially, the lack of access to suitable financial products and high interest rates are dampening SME growth. Only about half of all SMEs have a banking relationship and only one in five has access to credit.
Securing formal financing often requires SMEs to undergo long and tedious procedures, causing many to resort to informal funding channels – like borrowing from relatives or friends, for example.
Despite their considerable potential, ABTAJ CAPITAL NIG LIMITED support SMEs to virtually have no interaction with non-bank financial institutions (NBFIs) which offer services such as leasing, factoring, equity financing or insurance. The reasons for this include regulatory issues as well as obstacles on both the supply and the demand side.
Following the global financial crisis and the sharp decline in conventional lending that went with it, the volume of NBFIs entering the market has expanded greatly. Many governments around the world now recognize the opportunities for innovation and growth afforded by financial services outside the traditional spectrum. Building on this momentum, ABTAJ projects focuses on promoting non-bank financial institutions and the services they provide for SMEs in Nigeria.
Our Approach
ABTAJ promotes the delivery of non-bank financial services to SMEs in Nigeria at several levels, which is responsible for regulating NBFIs in Nigeria.
We are working to improve the regulatory and supervisory framework for non-bank financial services, to give financial incentives to more NBFIs to provide SME financing. Moreover, it is strengthening the financial market infrastructure by developing and implementing training programmes for NBFIs. Also, we are working closely with Banks and other notable finance corporations to enlarge its guarantee portfolio and improve guarantee models – the objective being to make SME financing safer and thus more attractive for NBFIs.
Yet another key area of activity concerns the promotion of finance options for startups and young entrepreneurs. In this connection, the project is helping to establish regional investor networks. This includes regularly organizing events at which young entrepreneurs can present their business ideas to potential investors. What is more, by developing the Nigerian economy.