The volume of finance available from the Deposit Money Banks (DMBs) operating in the country only forms less than 1 percent of the total credit to private sector, statistic from the Nigeria Export Import Bank (NEXIM) has revealed.
The data showed that such funds become cost that the Nigerian exporters are not been able to use them competitively in the global market.
According to the information gathered on the available credit for export transaction in the country, showed that the banking industry is risk adverse couple with the fact that access to fund that is needed in the real sector is difficult among banks.
For instance, a lot of the banks customers’ deposits are made of short-term funds and of short maturity, and when looking for medium to long term fund that needed to operate with the real sector, it always difficult to get.
It was gathered that the pricing of such money by those who are operating in the real sector cannot be used and be able to compete, because the export market is very competitive due to the fact that domestic exporters compete with people all over the world, people from China, from other parts of Asia, from Europe sometime who are able to access credits at single digit.
Just recently, Managing Director/ Chief Executive, Nigeria Export-Import Bank, Bashiru Wali, disclosed that there are hindrances affecting development of Non-oil revenue, at a time when the revenue from the oil and gas sector has declined significantly.
He pointed out that there other costs use of infrastructure, use of quality standard, use of packaging and all of these affect our export.
“After the Nigerian Domestic Products (GDP) was rebased in 2014, you would found out that now the services sector accounted for about 21 percent, Agric sector about 20 percent and the Oil and Gas sector account for less than 15 percent.
“But unfortunately that sector still accounts for over 70 percent of government revenue and 90 percent of export revenue, which is why we are where we are today”, he said.
However, export and finance statistics has revealed that oil revenue has been going down for a while now, and between 2013 and 2015, the oil revenue dipped by 60 percent. Also, the Non-oil revenue dropped by about 18 percent or thereabout. And over the last seven years, the figure for sect oral disbursement of loan has been drastically decline as well.
“At about 2008 and 2009, a total lending to export sector was in the region of N850 billion and that declined to 750 billion in 2009, and as at 2014 it wind to about N122 billion”, the export bank has said.