Exporters seek single digit interest rates

Exporters in Nigeria have said that for the country to successfully diverse its economy, the federal government need to initiate policies aimed at promoting single digit interest rates for them.

The exporters listed access to funding, high interest rates and lack of development of Warri and Portharcourt ports as major challenges facing export.

They spoke Thursday at a forum for bankers and exporters organised by the Nigerian Export Promotion Council (NEPC) in Benin, the Edo State capital.

An exporter, Mrs. Rona Peters, said Nigerian banks preferred providing finances for businesses that ‎bring quick financial returns.

Mrs. Peters explained that the development of Warri and Portharcourt ports would make trucking cheaper for exporters as well as decongest Lagos Ports.

“Loans for agricultural processing should be single-digit. CBN gives nine per cent. They (banks) should make borrowing single-digit, if they want to promote exports. It is not for banks to get at single digit and give to the citizens at double digit.

“They should bring it down; the banks should encourage us. NEPC has done well by bringing us together.‎ If you are into agricultural processing, it take time for you to stabilise. So, the banks need to be patient, grant the exporters low interest rates to promote export in Nigeria.”

‎Another participant, Abraham Momoh, decried the dearth of accessible port terminals in the South-South to cater for exporters in the region.

Momoh, who said that functional ports would promote the movement of goods from the area of origin to their respective destination outside the country, called for programmes on capacity building for farmers, as primary producers in the agricultural sector.

Chief Executive Officer of NEPC, Mr. Olusegun Awolowo, ‎attributed the challenge of funding to what he described at poor business understanding between the banks and exporters.

Awolowo, who was represented by the Director of the Duties of the council, Olajide Mohammed, however, noted that the federal government was willing to bridge the gap, through relevant interventions, as non-oil export was key to economic growth.”

Head of Nigeria Export and Import Bank in Lagos, Kalu Ugenyi, said literacy level on export ‘is low because a lot of people don’t want to go through the rigorous process of exporting products and you need a bit of exposure to get a partner outside the country.”

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