According to an Entrepreneurng report, the Nigerian-American Chamber of Commerce held its second Export to the U.S. Series breakfast meeting in Lagos, and attendees emphasized the need for the government to reduce red tape and other obstacles that prevent local businesses, particularly Small and Medium Enterprises, from exporting finished goods.
They claimed that to de-risk manufacturers and support SMEs, the availability of specialized intervention funds through loan guarantee schemes is required.
They contend that to accelerate the growth of the non-oil sector, the nation must foster an environment that is favorable to exports, increase the authority of export promotion organizations like the Nigerian Export Promotion Council (NEPC), and tighten monitoring and evaluation procedures.
Speaking on the topic of “Export to the U.S. Series, Financing Options for Export Operations,” they also identified weak institutions as the enemy of the nation’s drive for economic diversification, noting that strong institutions would aid in accelerating the diversification of the economic base, mitigating risks, establishing boundaries, and advancing development programs.
According to the most recent reports from the Nigerian Export Promotion Council (NEPC), Nigeria’s non-oil exports increased by 39.91% to $4.820 billion in 2022, the greatest level since the NEPC was founded more than 50 years ago.
Oluwajimi Jimmy Adebakin, the chief executive officer of FOB Global Logistics, said that to build on the performance, the government must offer incentives for shipping and make sure that the costs of the barriers to shipping are neutralized.
Additionally, he advocated for the establishment of a single portal for the repatriation of foreign currency. “You cannot borrow at 25 to 30 percent to support your export trade, and when you want to repatriate your money, the top bank is asking you to do so at its exchange rate with a significant difference between it and the CBN rate.
According to him, “We are hoping that the incoming administration will democratize that space and have only one window so that if I export and am bringing back export proceeds, I will get it at the parallel foreign exchange market.”
Emmanuel Efuntayo, vice president of the chamber, stated that institutional frameworks of various governmental agencies needed to be enhanced and reforms needed to be implemented so that intervention measures would reach the correct beneficiaries through the proper channels.
He urged the next administration to create institutions and implement reforms that were favorable to business and would take into account the different changes in the business climate.
To improve export procedures’ rationality and foster an atmosphere where the private sector can operate more easily, he urged regulatory agencies to work together more closely.
Akintunde Folorunso, the regional coordinator for the NEPC’s South West Regional Office, said the council has set aside an award of N365 billion for exporters who have been successful in bringing their money back home.
He claimed that the fund will act as a stopgap to lessen the exorbitant cost of conducting business in Nigeria. With more than 330 million people and a gross domestic output of more than $20 trillion, America boasts the world’s largest consumer market, according to Chamber President Dame Adebola Williams.
In conclusion, Wofai Samuel, the Nigerian-American Chamber of Commerce’s Director of Communications, Government Relations/Advocacy/Programs, noted that many financial institutions offer chances for SMEs and major businesses to improve export commerce and revenue.
Source: The Guardian
