Overview
The theme of this 2022 edition of the 3T Impex Consulting Annual Trade Finance Survey is “Stimulating Export
Finance Growth.” This is the maiden edition of this kind of study/report. It is also the first of its kind in the history
of the international trade sector in Nigeria. This edition has been able to unravel the root causes of the lack of
growth of non-export volume in Nigeria and provides insights into what needs to be done by the government,
banks, and other stakeholders in the industry to fix the problems.
The country is currently experiencing a very high level of inflation which has and 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 used to pay for imported goods has made the cost of importation to be at all-time high.
It is no more news that export is the low hanging fruit that can help Nigeria increase its foreign exchange
generation. It is also important to state that exportation is the only means of generating foreign exchange that
the country has control over; and this is because other means of foreign exchange inflow like Foreign Direct
Investment, (FDI), Foreign Portfolio Investment (FPI), are controlled by investors who want to do business in
Nigeria while the foreign remittances are controlled by Nigerians in diaspora who want to financially support their
friends and relatives at home in Nigeria.
This kind of report has become necessary because different people have varying opinions on the reason for the
low export volume from Nigeria; and this has made most efforts of the government not to yield the desired
results. This report has used a scientific methodology to determine the major factors hindering the growth of
export volume in Nigeria (particularly non-oil export) and proffers a comprehensive solution to the problems
through well-founded recommendations.
The objectives of the survey include: identifying the challenges of export business in Nigeria, knowing the level
of export trade finance rejection, understanding the reasons for export trade finance rejection, understanding
the features that characterized approved export trade finance requests, identifying the challenges faced by
exporters in getting their export trade finance requests approved, and recommending solutions that will address
the identified challenges associated with export trade finance rejection with the positive effect of reducing the
trade finance gap.
Some of the major findings of this annual trade finance survey include the following:
- 94% of exporters experienced rejection of their financing requests by Nigerian banks
- 42% of rejected export finance requests were done without any reason given to the exporters
- 21% of the rejected export financing requests were based on lack or inadequate collateral security
- Only 11% of exporters received approval for their export financing request
- 57% of exporters identified access to export finance, port logistics and delays by government agencies
at the port as major challenges hindering export growth - Only 22% of export financing requests were approved within one month of application
- 59% of exporters were attracted to a bank that have support services for exporters
To get the full report, use the download button below.