Thesis Abstract

Abstract
This research project explores the crucial role of the financial sector in promoting non-oil exports in Nigeria. Non-oil exports are essential for economic diversification and reducing the country's reliance on oil revenue. The financial sector plays a pivotal role in supporting non-oil exports through various mechanisms such as providing access to finance, facilitating trade transactions, managing risks, and offering advisory services. The study examines the challenges faced by non-oil exporters in Nigeria, including limited access to finance, high transaction costs, lack of credit facilities, and inadequate trade infrastructure. These challenges hinder the growth of non-oil exports, making it imperative for the financial sector to intervene effectively. Through a comprehensive analysis of the Nigerian financial sector, including commercial banks, development finance institutions, export credit agencies, and regulatory bodies, this research project identifies the opportunities and constraints for promoting non-oil exports. It highlights the need for tailored financial products and services to meet the specific needs of non-oil exporters, including export financing, trade credit insurance, and risk management tools. Furthermore, the study explores the role of government policies and regulations in facilitating non-oil exports and enhancing the competitiveness of Nigerian exporters in the global market. It emphasizes the importance of a conducive policy environment that supports export-oriented businesses, encourages innovation, and fosters collaboration between the public and private sectors. The research project also investigates best practices from other countries that have successfully leveraged their financial sectors to promote non-oil exports. By drawing lessons from these experiences, Nigeria can develop strategies to strengthen its financial sector and enhance its capacity to support non-oil exports effectively. In conclusion, the findings of this research project underscore the critical role of the financial sector in promoting non-oil exports in Nigeria. By addressing the challenges faced by non-oil exporters and leveraging the expertise and resources of the financial sector, Nigeria can diversify its economy, boost export earnings, create jobs, and achieve sustainable economic growth. Effective collaboration between the government, financial institutions, and the private sector is essential to realizing the full potential of non-oil exports and positioning Nigeria as a competitive player in the global market.

Thesis Overview

INTRODUCTION

1.1     BACKGROUND OF THE STUDY.

As a developing country, Nigeria is a net importer of capital. They need foreign exchange to finance exchange earnings from all, which contributes a major, part other total foreign exchange earning. Since the financial sector, in general and the banks in particular, are the nere centers of the Nigeria economy, they are therefore expected to play important role in promoting Nigeria’s non-oil exports Nigeria needs the financial institution to contribute, they have to operate so many loans scheme and contribute through stock exchange market facilities.

In order to achieve this goal our financial institution such as commercial banks, central bank of Nigeria, merchant banks, institution have to export encourage the bodies that are engage in the export program by giving the assistance where ever it is needed most. That means the financial institution has a very important role to play of which this study will take look at that role.

1.2     STATEMENT OF PROBLEMS:

The next thing now is what are the problem they encounter in performing this role. Here are some of the problems.

Lack of Awareness by Exporters:

Most exporters do not know the services available for them in the banks and insurance houses, here they still do it all on their goods as they have very small market for their products. For a bank to clear case of low turn out by exporters reveal this fact and for insurance most of the remain under utilized.

Corruption at the Borders:

There is a high degree of corruption at our border. This meant to check and make sure nothing is smuggled out through the borders, resort to accepting bribes from the smugglers as a result most exporters don’t want to go through right channel. They export without proper documentation and banking assistance thereby leaving the separate department created by the bank to cater for export trade lying under tilized.

Loan Default:

In most financial houses they are faces with the problem of loan default mostly by small – scale exporters with inadequate knowledge of their business area. In some cases, things turn out to be quite different from what they anticipated and their income falls very short of estimate hence, they cannot repay their loan.

Now Implementation of Some Export Promotion Incentives:

Some of the export promotion incentives made available by government are yet to be implemented. For example the export credit guarantee scheme which is suppose to serve as guarantee for export credits. Since this is yet to take off, the banks are then faced with the problem of indent identifying credit worthy exporter’s credibility. This has made them reluctant in granting credit to just any exporter.

Size Of Exporting Units:

In most exporting firms in Nigeria are usually small or medium sized and not often in position to produce tangible or valuable securities, worse still, they do not keep proper books of accounts and management. Banks therefore, encounter difficulties in evaluating their performance towards using it as a guide to granting them credits