They argued that lack of capacity building on the part of exporters, lack of adequate knowledge of the business, banks inability to fund exporters and regulators’ cumbersome processes, have increased the cost of doing business.
The challenges, they further argued have made export business in Nigeria an uninteresting venture.To tackle the challenges and make export business easier and lucrative, UKaid in partnership with the Policy Development Facility (PDF) II of Department for International Development (DFID), organised a two- day capacity building for money deposit banks (DMBs) and development finance institutions (DFIs) in Lagos.
The seventh non-oil exporters dialogue focused on improving access to finance for non-oil export trade.Lead, Trade Policy Work Stream, PDF II of DFID, Olumuyiwa Alaba, who said there was a huge gap in terms of what it takes to export in Nigeria, noted that the new paradigm shift ensures that countries add value to whatever they are producing and be able to access the export market.
He stressed that this would not happen except funding is made available for production and export, adding that the initiative was timely, following Federal Government’s agenda to diversify from oil to non-oil export.“We saw it as a very important initiative to sponsor capacity building on understanding what it takes to invest in non-oil export.
“On the exporters’ side, we are trying to enhance their knowledge of what to do to access export financing. On the banks side, we are making them understand the details of what it takes to export so that they can do their analysis and what it takes to finance non-oil exports.
“And on the regulators part, on how they can respond to commercial banks issues in terms of regulations.” Chief Executive Officer, 3Timpex Trade Academy, Bamidele Aiyemibo, who was facilitator, said the programme was timely for banks to fund exporters, adding that most banks do not know how export works, as they have only mastered imports.
“If they have the capacity, all other products would be easier. It is a big opportunity for them now that the CBN has made finance available to fund non-oil exports.“We want to see Nigeria export more to successfully diversify the nation’s economy away from oil.“Our expectation is that we would be able to enhance the bankers’ knowledge to be able to lend to exporters, while the exporters would know what it takes to access funding from banks.”