Banks reject 94% of export finance requests - Consultant
3T Impex Consulting Senior Consultant Dr. Bamidele Ayemibo said that 94% of export finance applications from Nigerian exporters are rejected by banks.
Ayemibo, made the statement during a program on 'Boosting the Growth of Export Finance in Nigeria', held at NECA House in Lagos.
He said in a survey aimed at unraveling the challenges hampering export growth in Nigeria, out of 227 exporters who applied for export finance from banks, only 11% did 'among them succeeded.
Ayemibo said, "The objective of the program is to use a scientific method to paint a picture of the current state of exports in Nigeria so that ultimately the whole initiative government is not lost if we are unable to solve the real problem.
"As such, we surveyed 227 exporters to find out the exact challenges hindering export growth in Nigeria and used their feedback to suggest solutions to some of these challenges."
He pointed out that one of the main challenges was that 94% of Nigerian exporters, according to the survey, have their applications for export finance rejected by banks and about 11% have their applications for export financing applications for financing approved.
"So we realized that there are problems on the side of exporters and on the side of banks."
To find out more, Ayemibo said that one of the reasons why the requests for financing from exporters were rejected by banks was that a number of exporters were not ready , adding that the banks were also not ready as most of them were using it to finance imports.
He added: "Some of the assessment criteria for export finance that they use are the ones that they use for other means of transaction. But there are other models that 'they can use to assess the risks and make a good credit rating and be able to finance always without recklessness and avoid losses on the transaction.
“Banks need capacity building; the government must support them with credit insurance, and I think we should reduce the rate at which the government asks banks to give guarantees. Instead, the government should give a guarantee to the banks so that the banks can give the money, while the government assumes the risks of an export growth in the country, as many other countries have done. »
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3T Impex Consulting Senior Consultant Dr. Bamidele Ayemibo said that 94% of export finance applications from Nigerian exporters are rejected by banks.
Ayemibo, made the statement during a program on 'Boosting the Growth of Export Finance in Nigeria', held at NECA House in Lagos.
He said in a survey aimed at unraveling the challenges hampering export growth in Nigeria, out of 227 exporters who applied for export finance from banks, only 11% did 'among them succeeded.
Ayemibo said, "The objective of the program is to use a scientific method to paint a picture of the current state of exports in Nigeria so that ultimately the whole initiative government is not lost if we are unable to solve the real problem.
"As such, we surveyed 227 exporters to find out the exact challenges hindering export growth in Nigeria and used their feedback to suggest solutions to some of these challenges."
He pointed out that one of the main challenges was that 94% of Nigerian exporters, according to the survey, have their applications for export finance rejected by banks and about 11% have their applications for export financing applications for financing approved.
"So we realized that there are problems on the side of exporters and on the side of banks."
To find out more, Ayemibo said that one of the reasons why the requests for financing from exporters were rejected by banks was that a number of exporters were not ready , adding that the banks were also not ready as most of them were using it to finance imports.
He added: "Some of the assessment criteria for export finance that they use are the ones that they use for other means of transaction. But there are other models that 'they can use to assess the risks and make a good credit rating and be able to finance always without recklessness and avoid losses on the transaction.
“Banks need capacity building; the government must support them with credit insurance, and I think we should reduce the rate at which the government asks banks to give guarantees. Instead, the government should give a guarantee to the banks so that the banks can give the money, while the government assumes the risks of an export growth in the country, as many other countries have done. »
Please share this story:
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