The Export-Import Bank of the United States (Ex-Im Bank) and the Nigerian Ministry of Power (MOP) recently signed a Memorandum of Understanding (MOU) aimed at securing up to $1.5 billion of U.S. exports of goods and services directed at a ten-fold increase in power output in Nigeria by 2020.

"$1.5 billion is just a start. We want to deploy this financing as quickly as possible to help meet President Goodluck Jonathan's goals for growing the Nigerian economy by greatly expanding the availability of power in the country. The bank's board of directors will certainly consider additional financing if needed," said Fred P. Hochberg, Ex-Im Bank chairman and president. "We are also interested in financing U.S. exports in support of Nigeria's other infrastructure needs, which we understand may total over $220 billion between 2012 and 2016," he said.

Nigeria intends to increase power output from the current four gigawatt level to 15-20 gigawatts by 2015, and 40 gigawatts by 2020.

The Bank and the MOP intend to establish a framework to support U.S. exports to power projects in Nigeria. They expect that the projects would be structured on an Independent Power Producer basis (IPP), where the sale of power from the IPPs is supported by an adequate level of sovereign or other strong credit support.

Transactions under the power sector framework would be approved by Ex-Im Bank on a case-by-case basis, in compliance with Ex-Im's credit and environmental policies and procedures. The agreement was signed in Abuja, the Nigerian capital, by Chairman Hochberg and Minister of Power Bart Nnaji during the Chairman's business development mission to the country this week.

Nigeria is one of nine countries in the world that Ex-Im Bank has identified as offering U.S. companies the greatest opportunities for sales. The other countries are South Africa, Turkey, India, Indonesia, Vietnam, Brazil, Mexico, and Colombia.