THE ROLE OF BANK EXPORT PROMOTION FOR ECONOMIC GROWTH
ABSTRACT
The establishment of bank is not legislatively decree compelled but should be seen as a measure to persuade the institution to take the advantage of employing and utilizing economic and social facilities. This study us aimed at identifying the role of bank in export promotion for economic growth in Nigeria. Highlighting the various roles that commercial bank has contributed towards Nigeria match for growth and development in export promotion this study focused attention an the general operations of the bank historical structure and background for effective and accurate assessment of the bank.
The study further remand the objectives and role of bank in export promotion and appraised its performance and also expose its problems and make recommendation materials for the study where sources are purely form secondary data.
The Nigeria economy is presently in a great and dilemma. The economy was plunged into the agonizing mainly due to over reliance on export commodity oil suddenly the price of crude oil drooped in the international market. The reflected sharply in the level of national income and gave rise to adverse balance of payment problems. The major concern of this study is to reveal how banks can help in promoting export and stimulating economic growth the federal government has taken liberal measures to stream live the structure of the banking system more banks are being licensed to undertake commercial and merchant banking activities.
A discount window of financing export have been established by the federal minister of finance export credit guarantee and insurance scheme is being design by the federal ministry of finance to stimulate export financing in particular the federal ministry of finance has been made an autonomous institution while banks are now allowed to take equity interest in small scale enterprises.
TABLE OF CONTENT
Approval page
Dedication
Acknowledgement
Abstract
Table of content
Proposal
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Significance of the study
1.5 Delimitation limitation and scope
1.6 Definition of terms
2.1 Reason for export trade
2.2 Quality control and community of supply
2.3 Summary of the review
CHAPTER THREE-RESEARCH METHODOLOGY
3.1 Source of data (secondary data only)
3.2 Location of data
3.3 Method of data collection (literature review only)
Conclusion
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Significance of the study
1.5 Limitation of the study
1.6 Delimitation terms
CHAPTER THRE
3.1 Location of data
3.2 Method of data collection (literature review only)
3.3 Source of data (secondary data only)
Conclusion
1.1 BACKGROUND OF THE STUDY
The topic “the role of bank in export promotion for economic growth is about the major issues business export trend in Nigeria role of bank in the development and promotion of export table goods and services and the contribution of bank towards ultimate economic growth.
Export promotion as used here involve all those services provided by banking and non-banking sector to facilitate the promotion of goods and services outside the country.
Nigeria has delved great benefit from international trade foreign goods but capital and consumer good not produced in the country have been acquired and paid for form Nigeria’s export earnings.
George O Niyi market for Nigeria export goods national concord June 13 1986 p.6. the important of export promotion especially in Nigeria cannot be over emphasized after the discovering of oil in 1965 it gradual came to dominate the export sector., oil therefore become the single most important item of export. Figures released by the federal office of statistics show that export of all items form the country in the first half of 1995 had recorded about 316,38.49 billion out of this petroleum product amounted to 14,365.9 billion in percentage terms oil exports represented 90.5 percent while other item had a negligible 9.5 percent. As at 19 79 oil accounted for about barrel day at 20.10 dollar per barrel the economy was 96% dependent on oil revenue as her foreign exchange earner. But unfortunately the revenue from oil was never commensurably reflected either on the extent of the job creation and other preferred multiple or linkage on the economy soon the price of oil began to declare resulting form the American International Agency and other manipulation of the organization of petroleum exporting counties (OPEC)oil glut quota sales and continuous price decline because the other of the day within five year (1981-1986).
The price of oil fell form on all time high forty American dollars to an all time how eight American dollars. Banks plays a major role in payment for export. This means of export payment for export and general settlement of international transactions are.
1. The foreign bill exchange
2. The bank draft
3. Document and for credit for which is necessary to open a credit at a bank in the exporters country.
4. The telegraphic transfers which enable bank deposit to be transferred expeditiously form the importer bank.
Bank act as a major intermediary for all listed means of payment. The federal government of Nigeria adopted some specific measures to ensure for export promotion in Nigeria.
Some of these are
a. Refund to import duty paid a raw material used for production of commodities marked for the export market.
b. Refund of excise duty on domestic manufactures export.
c. Exemption form import license for raw materials required for export products.
d. Liberalization of import license of raw material required for export products.
e. Abolition of export prohibition as contained in finance act No 2 of 1981 except for commodities whose exportation was barred.
f. Introduction of export credit guarantee in insurance sinecure during the year 1986 the most recent incentive package for exporter includes.
a. Currency intention scheme: Authority to retain foreign exchange earnings has been increased form 25% to 10% presently. The scheme enables the exporter to retain foreign proceeds in foreign exchange and allows part of the funds to be used in expenses related to export activities duly certified by the authorized dealers.
b. Export expansion grant: This provides cash inducement of exporter who have exported a minimum or 50.000 (fifty thousand) worth of semi manufactured product to facilitate expansion diversification etc.
c. Tax relief in interest income: This encourage bank to give out loans form export this programme. Interest income on loan for export activities shall be exempted form certain percentages tax.
d. Export development fund: This gives financial assistances to exporter to lower part of initial expenses for export promotion activities.
e. A Duly draw back scheme: Exporter shall on application to the duty draw back committees be entitled to 50% re-imbursement on import duty levies sub charge etc. paid in respect of all import duties including raw material used in export production.
In order to qualify for this facility the actual exportations of the product from the imported input must be computed with eighteen months form the data of importation of the imports.
In various economic development plans of Nigeria specifically three main objectives have been aimed at business.
1. Diversification of the composition to the export products especially those of agriculture as well as processed and manufactured goods.
2. Diversification of the friction of trade
3. Increase in the value of export procedures.
How these objectives has been achieved satisfactorily in any of the plan periods this is more reasons banking services are required and more encouragement in term of incentives must be given to the banks in order to stimulate their interest in export promotion specifically some of the problems attainable in the export sector as highlighted in the furth national development plan are as follows.
On the major export commodities coca performed better than anticipated. Some other crops such as groundnut oil failed out completely form the nation export list while many others like Timba Logs Plywood, plan Kernnel and groundnut cakes where shadows of there past performance. The perform of the marketing brand system of which hope had been placed to resuscitate the nation sagging agriculture exports seems to even made more pressing when it is realized that Nigeria is facing a decline in output or both her mineral and agricultural output.
Exports have been estimated that by the late 19905 Nigeria would not be able to export as much as oil as she does now because by then domestic consumption would have gone up between 1.5m to 1.9 barre is per day. Learning a reductive small quantity for export manufactured goods and still in their infancy and the output of the agriculture sector is still on the decline and meat importantly our central nervous system oil is facing the world oil glut crisis.
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