Effectiveness of Government Trade Finance Initiatives in Nigeria
Abstract
This study assesses how effective the Nigeria's government trade finance programmes are, noting both significant achievements and ongoing challenges. Initiatives like the Nigerian Export-Import Bank (NEXIM) and the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) have advanced trade and supportin the areas of agriculture and manufacturing, making contribution to the diversification of the economy from oil dependence. However, challenges such as insufficient funding, bureaucratic inadequacies, inconsistent policies, poor infrastructure, and limited awareness among SMEs and small-scale farmers hinder these programmes’ effectiveness. To improve impact, the study recommends enhancing communication strategies, streamlining application processes, increasing funding, and fostering greater private sector involvement. Implementing robust monitoring and appraisal frameworks is also critical. Addressing these issues will boost the programmes’ effectiveness, better support SMEs and small-scale farmers, and promote greater economic growth and trade competitiveness.
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