Role of financial institutions in Export Financing in Nigeria
Chapter One
OBJECTIVES OF THE STUDY
The objectives of the study are;
- The modalities adopted by the financial institutions in assessing goods for export.
- To determine the different economic policies adopted by the government to support finance and their effectiveness on the export business
- To find out what extent to which export oriented industries are financed by the institution of Nigeria.
- To find out the problems encountered by financial institutions in export product financing.
- To examine/determine the prospects of export finance in Nigeria.
- To make recovery on how to improve export financing.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
The Nigeria banking industry consist of inter-related institutions and agencies that provide a number of services to the nations economy these include
- Central bank of Nigeria
- Nigeria deposit insurance corporation (NDIC)
- Development banks
Central bank of Nigeria (CBN) was established in 1959 and since then it has been responsible for monitoring the affairs of the country’s banking industry the apex bank, it has assisted the evolving of a financial system for the country especially in the capital market. Apart from issuing notes and coins the central banks is also responsible for the policies and programmes. It manages Nigeria foreign exchange and other international financial system as a bank to the commercial bank and issue out to them from time to guide lines the number of other financial institution and bank created serious problem with the sector. ii They includes the liquidity problems, capital in adequacy in competent came well. Banks are not components, some of the existing decrease could not handle adequately some of these problems resulting from incompetents Banks staff. This leads to the promulgation of the central bank of Nigeria decree No 24 Bank and other financial institution degree gave the central bank the following responsibility.
- The decree made central bank of Nigeria solely responsible for the granting of the licenses to both banks non-bank financial institution.
- The decree also made provision for penalties including imprisonment and erring bank director’s officers and employee and staff for the series of relation of banking law and regulation.
- The decree specially made monetary and banking policies formulate the responsibility with the federal ministry of financial
- The decree prohibits a person from been a director of more than one bank and empower the central bank of Nigeria to scrutinize all persons nominated to serves as directors
- Empowers the central banks of Nigeria to handle any distressed bank in any way it seems necessary. This provision complements the provision of the Nigeria deposit insurance corporation degree of 1988.
NIGERIA DEPOSIT INSURANCE CORPORATION (NDIC)
The deposit is simply an arrangement whereby deposit ability of banks is insured such that in event of failure the depositor could be rein-bursed for the money they deposited. The scheme is specially designed to prevent the occurrence of the chains of bank failures and important advantage of protecting depositors of insolvent banks. The Nigeria’s deposit insurance corporations were established in 1988 in response to imminent collapse of the banking system. It is a regulation in charge with the following responsibilities.
- Responsibility of issuing bank deposit
- Ensuring save and sound bank practice through effective supervision and examination and assisting the banks when the needs arise. It assist the central bank in formulating polices.
- Bank of commerce and industry established in 1973. The federal Government of Nigeria citizens own it 60% and 40% respectively.
- Urban development Bank (U.D.B) it was established in 1993 and was meant to carter for urban house, minimum of 10 houses mass transit scheme, market development and other urban infrastructure
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought role of financial institutions in Export Financing in Nigeria.
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information role of financial institutions in Export Financing in Nigeria. 200 CBN selected staffs in Abuja was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain role of financial institutions in Export Financing in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of financial institutions in Export Financing in Nigeria.
Summary
This study was on Role of financial institutions in Export Financing in Nigeria. Four objectives were raised which included: The modalities adopted by the financial institutions in assessing goods for export, to determine the different economic policies adopted by the government to support finance and their effectiveness on the export business, to find out what extent to which export oriented industries are financed by the institution of Nigeria, to find out the problems encountered by financial institutions in export product financing, to examine/determine the prospects of export finance in Nigeria and to make recovery on how to improve export financing. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staffs of CBN in Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made administrative staffs, economists, senior staffs and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
From the foregoing, the researcher concludes by saying that there has been a growing interest in export financing by bank and other. There has been assistance in supporting Nigeria effort in reshaping their economy through financing non-oil export among other reason. The various move to finance and promote export couple with the offer or exports incentive. Examples are the setting up to the export promotion council prescribed section credit allocation, promulgation of the export incentives and miscellaneous provision degree duties drawn back etc. are to yield the expected divided in view of lack of adequate positive response, it is important to promote export of goods. It is established in Nigeria export and import bank. Nigeria export help to promote council, export to credit guarantees and insurance co-operation as well as other export proceeds zonal schemes
Recommendation
Base on the finding and other observation in the body of the project, the researcher made the following recommendation which if implemented will not only aid financial institution in achieving their co-operate objective and traditional function will also help in achieving balance economy growth the need to embark vigorous on the production of goods and services for the export to scale promotion drive, there is a large for our communities in neighboring that we are yet unable to satisfy, much needs to be done one of the production expecting includes quality improvement, rather than on the real scale promotion aspect before the countries large export potential can become realize which will also boost of the bank business and other financial because of long delay in cheque clearing procedures which could make export to face problem of increase cost of export for a successful exporter financing operation. Bank should expatiate the granting of loan facilities to make it available when needed on time. They should be scrutinized and put into series control so as to improve ii the quality of Nigeria export commodities. Since it has been fund, the locally proceed good and it has become very experience due to inadequate finance from relevant institution. It is therefore important to recommend that governments should device means as of given assistance like subsidy and all other kind of encouragement so as to reduce the cost of local processed goods. Monetary policy, guideline should be design to encourage the bank to step up export financing. This in view of the high priority that should be accorded to non-oil export in order to generate additional foreign exchange for more diversified sources. It is suggested that provision for producing and processing of export communities should excluded from Central Bank of Nigeria credit ceiling.
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