Hindrance to banks’ financial services by exporters is one of the major challenges stifling the smooth growth of non-oil export in the country.
Chief Executive Officer of Nigerian Export Promotion Council (NEPC) Dr Ezra Yakusak told Desk Officers from over 27 financial institutions undergoing capacity building on non oil export commodities organised by the Council on Thursday in Abuja.
This, he said was especially as a result of high interest rates and low disbursement of credit facilities to finance non-oil export trade by the lending institutions, a development that ultimately affects nation’s non-oil export performance.
He added that most exporters lack the financial muscle required to set up modern export related industries and ensure production of high quality products.
The capacity building is themed :”enhancing non-oil export growth through effective export procedures , documentation and logistics”.
The training was part of Council’s effort at strengthening collaboration in promoting export competitiveness to achieve economic diversification agenda of the federal government.
Ezra reminded desks officers of banks the role of non-oil export sector in the economic development of Nigeria. The sector, he said presents great opportunities for more Nigerians to participate in the global market space.
“It is on record that Nigeria is endowed with immense potential in some of the world’s most traded products such as; cocoa, ginger, cashew, soya bean, sesame seed, palm oil, rubber, shea, gum arabic etc. However, statistics have shown that the country is not benefiting maximally from its vast export potentials because of a number of issues such as; knowledge gap, access to finance, cumbersome procedures and documentation, poor packaging among others.
“These factors constitute major challenges being faced by exporters. As a matter of fact, access to bank financial services by exporters is one of the major challenges stifling the smooth growth of non-oil export. This is due to high interest rates and low disbursement of credit facilities to finance non-oil export trade. This has ultimately affected the nation’s non-oil export performance because most exporters lacks the financial muscle required to set up modern export related industries and ensure production of high quality products”, he noted .
He underscored importance of in-depth knowledge on non oil export commodity on the part of Bankers.
“We are not oblivious of the fact that an in-depth knowledge of export procedures and documentation and effective management of export logistics is an invaluable asset in developing long-term business relationship with foreign buyers which may increase the likelihood of repeat export contract and referrals. In regard, the NEPC as a responsible and responsive agency has identified capacity building as a priority for relevant stakeholders in the non-oil export value chain. This is deliberate and strategic because we believe that when key stakeholders like Bankers, are equipped with the necessary export knowledge and expertise, they would work more efficiently to complement each other towards the promotion of export business in the country.”
He said without the banks, no formal export trade can be undertaken because the various NXPs are usually processed by Banks.
“May I inform you that in the year 2022 non-oil export performance report, a total number of 30 banks participated in the issuance and processing of NXPs forms. This led to a total export value of $4.8billion, the highest recorded since the creation of the NEPC in 1976.”
He informed the bank officials that there had been an upsurge of non-oil export activities by banks across the country. This, he said includes, non oil export seminars, trainings and even foreign exhibitions.
“With the current foreign exchange policy where foreign currencies can now be bought and sold at rates determined by the market, I believe that there will be an increased in non-oil export activities by Banks.”
