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Saudi Journal of Economics and Finance (SJEF)
Volume-4 | Issue-08 | 412-420
Original Research Article
Evaluation of Non-oil Export Stimulation Facility and Non-oil Export Performance: Nigerian Paradigm
GBARATO Ledum Moses, COOKEY Sunny Chekiri Monday, VISAN Callistus Giobari
Published : Aug. 19, 2020
DOI : 10.36348/sjef.2020.v04i08.006
Abstract
The focal interest in this study has been to critically evaluate the trend of non-oil-export-stimulation facility (NESF) as well as non-export performance in Nigeria. The NESF is a 10-year tenure CBN debenture investment that worth N500 billion naira as credit to non-oil export sector with commencement from 2017. Although, NESF experienced a halt in the process due to forensic auditing of perceived corruption in Nigerian Export and Import Bank (NEXIM) operations which has crippled earlier similar programmes, a cursory look at NESF through percentage growth and graphical trend of non-oil export extracted from CBN Statistical bulletin 2019 reveals remarkable increase in the trend of non-oil export activities from 2017 to 2019 being the incubating as well as implementation period. While negative growth rates of 15.5%, 30.8% and 0.6% were recorded in 2014, 2015 and 2016 respectively, in 2017, 2018 and 2019, there was positive and remarkable growth rate in non-oil export sector by 63.7%, 32.6% and 124.9% respectively. Also, from ARDL result, non-oil export positively influences RGDP. This suggests that with prudent administration of the NESF, there abound great hope in the economic growth of Nigeria. Therefore, the study recommended that concerned beneficiaries of NESF should maximize accrued advantages of this opportunity especially its favourable repayment-period-spread and rates, with a two-year moratorium. Also, the rebranded NEXIM should take it as a foremost duty to scrutinized, monitor and reprimand where necessary for the attainment of NESF nominated objectives. Finally, improvement in infrastructure needed for export promotion should be strengthened.
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