High-interest rates depriving non-oil exports, says NEPC
By Joy Obakeye
The Chief Executive Officer of the Nigerian Export Promotion Council (NEPC), Ezra Yakusak, has said high-interest rates and low disbursement of credit facilities to exporters are one of the major challenges stifling the growth of the non-oil export.
He disclosed this at the recent capacity building programme for bankers in Abuja, tagged: ‘Enhancing non-oil export growth through effective export procedures, documentation and logistics’.
The event was aimed at strengthening collaboration in promoting export competitiveness to achieve the economic diversification agenda of the Federal Government.
This, he said, was due to high-interest rates and low disbursement of credit facilities to finance non-oil export trade.
It has also affected the non-oil export performance because most exporters lack the financial muscle required to set up modern export-related industries and ensure the production of high-quality products.
He said: “As you are aware, the non-oil export sector plays a 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 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 potential because of several issues such as knowledge gap, access to finance, cumbersome procedures and documentation, and poor packaging.”
“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 Nigeria Export Proceeds Forms (NXPs) are usually processed by Banks, in the year 2022 non-oil export performance reported a total number of 30 banks participated in the issuance and processing of NXPs forms. This led to a total export value of $ 4.8 billion, the highest recorded since the creation of the NEPC in 1976.
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He 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 relationships with foreign buyers which may increase the likelihood of repeat export contracts and referrals.
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 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.
