Report reveals less than 1,000 companies exporting in Nigeria

A report has revealed that less than 1,000 companies are currently undertaking non-oil exports in Nigeria.The report by 3T Impex Consulting attributed the low exporting companies to some bureaucratic bottlenecks, financial constraints among others.

The report also revealed that 81 per cent of the rejected financing was pre-exports, while 19 per cent was pre-shipping.
It noted that 42 per cent of rejected export financing requests was turned down with no cogent reasons given to the exporters, while 21 per cent of the rejected export financing requests was attributed to lack or inadequate collateral security and 8 per cent was due to inadequate documentation.
   
Ayemibo said: “The country is currently experiencing a very high level of inflation, which has resulted in high cost of living, given that Nigeria is largely import-dependent. The consequent high rate of exchange of the naira to major foreign currencies for payment of imported goods has made the cost of importation to be at an all-time high.”
 
He stated that export is the low-hanging fruit that can help Nigeria increase its foreign exchange generation. 
Major challenges that exporters face, according to the report include; port logistics (26 per cent); access to finance (20 per cent); customs and delay by other government agencies at the port (11 per cent); exchange rate (10 per cent); market access (6 per cent); and access to raw materials (4 per cent); and poor infrastructure (4 per cent), among others.

He urged bankers to explore export support services such as market access, export finance products, documentation and speedy delivery, among others, to attract exporters.
He enjoined Ministries, Departments and Agencies of government and other private stakeholders to work together to speed -up the clearing of goods at the ports.
He challenged exporters to learn about the risks and dynamics of the various payment methods in international trade and trade finance instruments.
 
Bank representatives at the presentation expressed renewed interest in lending to export but noted that exporters in most cases do not show commitment to financing procedures.
The Chief Executive Officer, National Export Promotion Council (NEPC), Ezra Yakusak, said that export business requires sustainable funding, because the amount required for exports are huge.
   
Yakusak, who was represented by Mrs. Alice Ibiloye, said that Nigeria offers various financing supports to enhance performance of the export sector.
Secretary-General, International Chamber of Commerce (ICC), Nigeria, Olubunmi Osuntoye, enjoined all stakeholders in international trade to work by the rule of engagement, emphasising that non-oil export is key to unlocking Nigeria’s economy.

She urged the Federal Government to create a streamlined structure that would enhance trade facilitation.
Osuntoye said that Nigeria should be one of the giant economies of the world, considering its abundant resources, but unfortunately, it has a system that is frustrating those doing legitimate international trade.