The Pan African Capital PLC has called for the removal of most hindrances militating against export and trade financing in Nigeria, in order to stimulate the growth of Nigerian economy and promote effective trade relations with countries across the globe, This Day reported.
The investment banking firm also advised the federal government to create necessary favorable climate that will encourage in-flow of foreign direct investments into the country.
Group Managing Director, PanAfrican Capital, Mr. Chris Oshiafi who stated this in Lagos during the just concluded 6th Annual West Africa Trade & Export Finance Conference, noted efforts by the government to ensure a robust economy, but said much still needed to be done in the provision of necessary infrastructure that would galvanise businesses.
He listed such constraints to export and trade financing to include unfavorable government policies both in export and import, asking government to create policies that will help exporters and trade.
He also bemoaned the adverse effects of the devaluation of the naira against international currencies, like the US dollar describing this as a major issue.
“We have an issue with the devaluation of the naira but that is not peculiar to Nigeria alone, oil is an international commodity. Quite a number of the oil producing countries are seeing a lot of challenges in revenues. Why Nigeria’s case is worrisome is that we have depleting reserves and the current political terrain has not helped in creating that confident to enable our Naira to appreciate. We, however, believe that after the election, we hope to see an improvement and that will also help trade moving forward,” he said.
Other militating factors, according to him, include unimpressive flow of direct foreign investment, poor power supply and more importantly the current security challenge in the country.
“Security is an issue that will help people have faith in coming into Nigeria and dealing with Nigerian businessmen but these challenges are everywhere and we believe conferences like this will help bring exporters and importers together and will help develop trade going forward,” he said.
On Pan African Capital’s involvement in the conference, he said the company has a unit that deals with structured finance and export credit and also has a number of clients that deals with exports, local productions and also in global trade. The essence, according to him, is to bring the company’s services to Nigerian companies who are interested in that kind of service.
Access Bank Woos Foreign Investors
Access Bank Plc has called on trade financiers, foreign banks and other international finance organisations to explore trade finance opportunities existing in agriculture, construction and power sectors in the Nigerian economy.
In his keynote address at the annual Africa Trade and Export Finance conference co-sponsored by the bank in Lagos recently, the Group Managing Director, Access Bank of Nigeria Plc, Mr Herbert Wigwe, said though there were challenges in these sectors, the risks could be surmounted and returns enormous.
Represented by the Head, Project and Structured Finance, Access Bank, Bola Bamidele, the bank’s boss said trade finance had grown in Nigeria, it still presents huge opportunities for discerning investors.
Also, a Senior Vice-President and Head, Power Unit, Africa Finance Corporation (AFC), Batchi Baldeh urged financial institutions in Africa to use African funds to finance African projects, especially in the power sector.
“We as Africans should use African money to finance African projects, especially investments in the power sector,” he stated.
According to him, there should also be government subsidy in sectors that are not cost effective to enable investors to make reasonable returns on investments, adding that effective Public Private Partnership (PPP) should involve private and public sectors coming together to develop solutions.
