Nigeria will continue to struggle with limited export except for key challenges like logistics that combating growth in the subsector are addressed urgently.
International Business Consultant, Bamidele Ayemibo stated this while speaking at an event that highlighted some of the challenges impeding growth in the industry.
Ayemibo, who is the Director of 3T Impex Trade Academy, stressed the need for the country to remove all bottlenecks hindering the ease of doing business at all the ports.
Investors King had earlier reported that congestion, policy inconsistencies, high cost of operations, poor road network and long shipping lead time are some of the challenges affecting port activities in Nigeria.
Although the Nigeria Port Authority (NPA) and the Nigeria Customs Services have often assured of improved services, nothing significant has however been done.
Dr. Bamidele Ayemibo further disclosed that Small and Medium Enterprises, SMEs, especially those in the Agric sector dominated the export trade. A narration he believed can generate huge foreign exchange for the country.
He added that a new report on trade financing in Nigeria has revealed that 94 percent of exporters’ credit facilities requests are generally rejected by Nigerian banks, thereby making it difficult for them to undertake exports from the country.
He further noted that scarcity of foreign exchange which has led to a huge spread between the naira and the dollar is a critical factor that the authorities need to address.
Also speaking at the event, the representative of the Nigerian Export Promotion Council, NEPC, Mrs Allice Ibitoye assured that the council will continue to promote a conducive environment for those in the export sector in order to bridge the deficit in the country.
Meanwhile, some representatives of the banks who were present at the events disclosed that banks limit borrowing to finance export businesses largely due to the risks involved. They revealed the huge risk associated with export businesses necessitated banks to take extra caution.