Las Casas de campo y el contexto dialético nacional

High export levels are vital for economic growth and development of every nation owing to their ability to create jobs and increase foreign earnings. Basically, exports in Nigeria can be described under two main categories namely, oil and non-oil exports with the former contributing more than half to the country’s total exports (Osuntogun, Edornu, & Oramah, 1997).

Nigeria’s manufacturing sector is one of the non-oil sectors of the country’s economy and continues to contribute moderately to total exports and GDP. Currently, the sector is dominated by various subsectors including food, beverages, tobacco, textiles, apparel, wood and wood products, chemical products and pharmaceuticals (NBS, 2014). Though the sector has seen some appreciable improvement in recent years, it has been noted that this may not be sustainable due to supply-side challenges which continue to suppress the nation’s exports. For example, Nigeria recorded ₦16,426.8 billion in 2015, representing 30.6% less than the total value of trade registered in 2014 (NBS, 2015). This development which is attributed to a fall in export value between 2014 and 2015 may be triggered by lack of access to finance which is crucial to offset the working capital needs of financially constrained exporters. Several authors including Osuntogun et al. (1997) have argued that for Nigeria to reasonably increase its exports, renewed efforts may have to be redirected to enhancing the country’s manufacturing sector in order to encourage exporters to increase their sales. It is important to point out that these researchers are

59 not the first to draw this conclusion, as efforts to promote firm-level exports in Nigeria have long been high on policy makers’ agenda since the second half of the 1970s. Some of these notable efforts, which the study discusses in turn, include the establishment of the Nigerian Export Promotion Council (NEPC), the passing of the Export Incentives and Miscellaneous Provisions Decree, the establishment of the Nigerian Export Import Bank (NEXIM), the creation of Export Processing Zones and the recent allocation of ‘export funds’ by the Central Bank of Nigeria. The Nigerian Export Promotion Council (NEPC) was established in 1976 as a government agency mandated to regulate, promote, record and monitor export trade in Nigeria. It is responsible for spearheading all exporting activities in Nigeria and particularly for providing indigenous manufacturers with the necessary help to enable them to export easily. Core activities of the agency include proffering trade information to existing and potential exporters, assisting in product and market development, being the lead provider of human resource training and development on issues of export, coordinating and liaising with multilateral agencies like the World Bank, the United Nations Development Programme (UNDP) and the administration of exports and incentive schemes.

Another effort by the Nigerian government to increase firm-level exports is the introduction of the Export Incentives and Miscellaneous Provision under Decree No. 18 of 1986. This Decree basically established three funds all meant to address various issues confronting exports with the principal aim of significantly driving up Nigeria’s total value of exports. These funds include: the Export Development Fund, the Export Expansion Grant Fund and the Export Adjustment Scheme Fund.

The Nigerian government under Decree No. 38 of 1991 has also established the Nigerian Export Import Bank (NEXIM) as an export credit agency. This agency was specifically established to promote exports under the Structural Adjustment Programme which seeks to resolve Nigeria’s worsening trade balance and to reignite economic growth. To date, NEXIM basically offers different types of export credit facility (Direct Lending Facility, Foreign Input Facility and Stocking Facility, among others) and also provides export insurance and guarantees to its clients.

60 To promote exports in Nigeria, the government also created Export Processing Zones through the pronouncement of Decree No. 34 of 1991. Under this, firms are exempted from normal custom duties on imported raw materials and the export of finished goods. Additionally, the country’s industrial regulation has also been relaxed for beneficiary firms to enable them to increase their productivity and exports. For example, regulations on profit repatriation, access to foreign exchange and foreign ownership of firms, among others have all been relaxed.

Finally, in reaction to the 2015 economic downturn in Nigeria, which was largely attributed to a fall in export value and tighter financing conditions (IMF, 2015), the Central Bank of Nigeria has launched a ₦500 billion non-oil Export Stimulation Fund (ESF) to promote firm-level exports in order to reignite the economy. In addition, the Bank has also increased the export credit Rediscounting and Refinancing Facility (RRF) by ₦50 billion, as a liquidity window to encourage Deposit Money Banks (DMB) to expand their lending activities towards exporting. In spite of the above efforts to promote Nigerian exports, current trends continue to show a decline in the country’s total export value. Given the huge working capital gap that endangers most exporters in the country, increasing access to finance is paramount to enable such firms to overcome their marginal costs of trade and production which is critical in increasing exports size. Though efforts to provide export credit by successive Nigerian governments is clear, it appears such interventions did not yield much result.

4.3 Related literature