Nigeria: Exporter Seeks Intervention Funds for Export Market

A Renowned Agro-allied Exporter and Chief Executive Officer (CEO) of Sourcing and Produce, Mr. Lanre Awojoodu, has called on the federal government create access to loans for exporters in their quest to be part of the regulated global commodity platform.

Awojoodu stated that export companies need cheaper capital to be able to compete on prices globally.

He said that now is the crucial time for government to make funds available for exporters of agricultural produce and suggested that an NXP pre-financing scheme would be the best option as it would enable government to identify exporters who have a track record of NXP’s to get available affordable loans for their export businesses.

He noted that a framework along this line would be positive for the country’s non-oil export sector as it would make government to see more exporters using importer and exporter foreign exchange (FX) window.

Awojoodu explained: “I would suggest an NXP pre-financing scheme, this will really help the government and exporters. Government makes available affordable loans for exporters who have a track record of NXP’s. Let us say a situation where you can get a loan of 50-70 per cent of your NXP value of the previous year in a loan. If you default, then you are blacklisted. Capital needs to be cheaper to be able to compete on prices globally. A framework along this line will be positive. The government will see more exporters using importer and exporter FX window.”

Speaking on some of the challenges confronting the export market, he explained that getting credible customers, funding, poor road infrastructure and cost of freight remained the biggest drawbacks affecting the business noting that over the last 10 years, the business has gone through many phases.

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