1.1 BACKGROUND OF THE STUDY
Despite the risk inherent in exporting,
it’s most obvious advantage is the additional sales and profit which are
generated. Exports more often than not reflect production beyond what
is required for domestic consumption in a situation where a deliberate
policy to produce solely for export is not pursed, Ahmed (1995). In
addition, an exporting economic will benefit from increased optional
utilization of productive capacity. These benefits eventually transform
into better living condition of the people, since foreign exchange
earned would contribute to meting their need fro some essential goods
Whether in a develop or a developing
economic exports constitutes a dynamic factor in economic growth and
development. It does not only serve has a catalyst or an important
engine of growth, it is also a great source of stimulation to other
sector of the economic (spill over effect).
In almost all the developed or
developing countries the export sector has always been the major driving
force, propelling the growth of the economy by moving all the other
sectors among with it by generating the required foreign exchange,
providing the where-withal for the financing of development inputs such
as machinery, spare part, industrial raw materials and equipment and
technology for the efficient functioning of the industries. Export
sector dictates the pace of growth and development to the extent that
development inputs are not often available locally, particularly in the
developing counties, the earnings of the foreign exchange through
exports to procure them, become indispensable. In other words the growth
and indeed development of any economic can be seriously impaired by the
monavailbility or lack of foreign exchange resources.
It is the recognition of the crucial
role which exports play in the growth process that most countries of the
world today strive to promote its vigorous growth countries in which
the export sector play a leading role in their development include South
Korea and Mauritius.
1.2 JUSTIFICATION OF THE STUDY
For instance non oil; export accounted
fro 99.3 percent of total export in 1960 and only a mere 2.7 percent in
1985. Diversification of exports had thus because a very obvious goal
that has to be achieved by any serious export promotion strategy. This
will however lead us to many problem militating against export promotion
in Nigeria in including shortage of credit illiteracy, lack of
awareness and inadequate knowledge of export market among others.
The justification of the study will be
shown in the specialized means and ways by which NEXIM Bank is playing a
leading role for only first your of its operation, it accounted fro
over 60 percent of the credit to the export sector (as compared to the
total credit from the sum of all financial institution). Therefore to
say the heart, it will only be imperative that a full appraised of NEXIM
Bank activities since inception in January 1991 be carried out. The
justification of this study will be based on the impetus, hope or
decision which the introduction of NEXIM Bank sought to achieve and is
already achieving in the promotion of exports based on the evaluation of
the policy trust which was outlined as its inception.
The study will finally seek to see how
policies like the rediscounting and refinancing facility (RRF) Stock
Facility (SF), Foreign Import Facility (FIF) among other facilities
including Risk-bearing Facility will go a long way in making credit
available for express using bank intermediaries.
1.3 PROBLEM STATEMENT
Current problem of the export sector in
Nigeria are indeed numerous while some of the these predate the
structural adjustment programme (SAP) others are incidental to SAP,
learning in mind that under SAP a sizable percentage of export operation
Also while some of these problem are
external to the country for example an increasingly competitive and
protectionist would others are strictly speaking within the country and
have influenced the articulation of the never role which NEXIM Bank has
sought to achieve in promoting and developing exports (especially
They include the following:
- Shortage of credit
- Low literacy level
- lack of awareness
- Inadequate understand of international market and complete absence of risk bearing facilities.
1.4 OBJECTIVE OF THE STUDY
The main objective of this study is to emphasize the role of development bank in the production of export in Nigeria economy.
1.5 RESEARCH METHODOLOGY
For the purpose of this project, primary
and secondary data collection method shall be used in the primary
method we shall make use of questionnaire and also experts in the filed
shall interviewed in gathering valuable facts for the project.
Secondary data collection shall mainly
be literature which composed of textbooks, journal and some institutions
publication like institute of charted banker of Nigeria to embrace the
1.6 LIMITATION OF THE STUDY
This research work is limited by the following constraints.
Firstly, transportation problem due to
the distance between Osun State and Lagos State we were unable to get
the needed facts at the right time.
Also, the problem of finance is another constraint of the research work to further find more acts from other banks.
Lastly, the customers United Bank for
Africa plc, Oosgbo branch are not ready to cooperate as expected and
this lose more problem the research.