1.1 INTRODUCTIONThe structural deformity interest in the Nigerian economy since colonial era finally gave way to restructuring of the economy in July 1986 through the Structural Adjustment Programme (SAP). This programme has is prime objective in the effective attering and restructuring of the consumption and production pattern of the Nigerian economy using market mechanism and proper valuation of the Naira as its major tools.
This singular effort redirected the focus of the government, financial non-financial institution and individual investors of this country towards expanding the economic frontiers of Nigeria away from the non-export status to diversify export orientation. A situation that required among other encouragements.
The argument other people of the improved export financing in Nigeria are among other factors as: it allows for the diversification of the economy from the present dependence on crude oil allied products to the non-oil sector of the economy. A part from this, improved export financing will equally improves the foreign exchange of the country its positive effect.
On the country’s foreign reserves and import financing. Before having a detailed analysis of the benefits accruable to a country from paper and improved export financing, it will be in line to give brief historical perspective to the development and effort towards export financing in Nigeria, while in the interim, the problem, prospects encountered and envisage respectively by the institution (Nigeria Export-Import Bank (NEXIM) statutorily saddled will the responsibility of providing the potential exports.
Exporters and their banks will the necessary financial assistance and guidance will be looked in to the main body of the thesis.
Export financial has been defined as “the provision of short, medium and long term funds for export operation. Historically, before 1945, there was no deliberate effort on the part of the colonial government to finance export, either with the use of export mechanism or specialized institution. What obtains then was not that the multinational companies dominates the export sector of the economy source their fund directly from the existing banks or from their parent companies.
1.1 BACKGROUND TO CASE STUDY (NEXIM)
Import-export banking has assured a global Phenomenon from Japan to Jamaica from China to U.S.A.Today Nigeria has also established a similar bank called Nigeria Export-Import Bank (NEXIM) with the man-data of pivoting the country’s economic recovery. The dream to have a specialized financial agency in charge of export and import financing was a result of various steps from the first National Development plan of 1960 to 1988 Decree No. 15 as amended by Decree 38 of 1960, that brought the establishment of NEXIM.
The contribution that led to this long delay was the mobility of the Federal government to decide on the type of export-import agency that will has as its that argued that a NEXIM Bank is the best credit agency that the export-import sector of the economy needed. This contention was brought to an end by the recommendation with the assistance of European Economic Community (EEC). In collaboration with AFINEX company, a specialist in Export-Import and related matters that finally led to the establishment of NEXIM Bank instead of a risk bearing agency.
This recommendation led to the mandate given to the Central Bank of Nigeria (CBN) of draft the necessary action that will guide the functioning of NEXIM. A draft that was finally backed by Decree 1 No. 15 of 1988 and later amended by Decree No 38 of 1981. Statutory, the Bank at inception was to perform the under listed function:
1.2 OBJECTIVE OF THE STUDYUntil recently, there has not be existence of deliberate effort by government to look into the problems faced by the exporters, potentials and their Banks in terms of sourcing financial at the right, place and at the right conditions for their exports. Even rate, place and at the right conditions for their exports. Even with the ever declining growth of loanable funds for export of non-oil products, the country’s real sector economy. More so, with the simultaneously decline in the revenue generated from oil exports.
But the recent sudden interest could be attributed to urgent need to improve the welfare state of the majority of the masses through positive growth in the economy. As such, there was the country by diversifying the sources of foreign exchange earning. This in effect, could be made possible by the easy available of finance availability to the exporter of non-oil product and the agencies responsible for their provision.
I.The various sources of finance available to the exporter of non-oil product and the agencies responsible for their provision.
II.The need to have an autonomous Nigeria exporter bank that will be independent in declining on the allocation of the necessary incentive to exporters or importers of export input as to where and when needed.
III. The need to acquire, the exporter of where to source their export information and the nature of such information.
IV. The cost structure in export venture.
V. The various documents used in the export financing.
VI.The problems of NEXIM Banks and the possible ways of solving them.
1.3 STATEMENT OF PROBLEMSThe greatest aspiration of every exporter is to get the needed finance at the right quantity, time, condition and rate. This aspiration has only remained a mere dream than a .j. As a result, what has remained a common sight is that every potential exporter that goes in the export business I greatest enthusiasm leaves the sectors dissatisfied and disappointed.