The Executive Director/CEO, Nigerian Export Promotion Council NEPC, Ezra Yakusak, has lamented that lack of access to bank financial services by exporters is one of the major challenges stifling the smooth growth of the non-oil export.
The ED disclosed this at the capacity building programme for bankers in Abuja, with the theme, ‘Enhancing Non-Oil Export Growth through Effective Export Procedures, Documentation and Logistics’.
The programme was held to strengthen collaboration towards promoting export competitiveness to achieve the economic diversification agenda of the Federal Government.
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This, he said, is due to high interest rates and low disbursement of credit facilities to financing non-oil export trade. It has also affected the nation’s non-oil export performance because most exporters lack the financial muscle required to set up modern export-related industries and ensure production of high quality products.
He said, “As you are aware, the non-oil export sector plays very important role in the economic development of our nation. The sector presents great opportunities for more Nigerians to participate in the global market space. It is on record that Nigeria is endowed with immense potentials 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.
“Banks are one of the most important institutions in non-oil export trade. Without the banks, no formal export trade can be undertaken, because the various Nigerian Export Proceeds forms (NXPs) are usually processed by banks. In the year 2022, non-oil export performance reported that 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.”
The ED maintained 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 contracts and referrals.
He said 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, adding that this is deliberate and strategic because the council believes 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.