Yakusak: High Cost of Credit, Others Bane of Non-oil Export Trade

James Emejo and Aisha Kabiru in Abuja

The Executive Director/Chief Executive, Nigerian Export Promotion Council (NEPC), Dr. Ezra Yakusak, has blamed lack of access to credit by exporters as one of the major challenges stifling the smooth growth of the country’s non-oil export.

He said the sector was particularly constrained by the high-interest rates regime and low disbursement of credit facilities to finance the non-oil export trade.

Speaking at the opening of a capacity-building programme for bankers in bankers, the NEPC boss said the situation has ultimately affected the nation’s non-oil export performance as most exporters lack the financial muscle required to set up modern export-related industries and ensure the production of high-quality products.

He said, “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 relationships with foreign buyers which may increase the likelihood of repeat export contracts 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.”

Yakusak, however, commended some financial institutions for their continuous support to non-oil export businesses in the country, and solicited increased support, through the creation of export tailored financial structure that offers greater flexibility.

He said when provided with the needed resources and support, exporters, especially SMEs will be able to increase their capacity to export and diversify their export baskets.

He added that the training organized by the NEPC marked a significant milestone in its continuous effort at strengthening collaboration in promoting export competitiveness to achieve the economic diversification agenda of the federal government.