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
CHAPTER ONE INTRODUCTION
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
CHAPTER TWO LITERATURE REVIEW
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)
CHAPTER FOUR
Summary of finding
CHAPTER FIVE
Recommendation
Conclusion
Bibliography
CHAPTER ONE
INTRODUCTION
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.
1. 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.
2. 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.
3. 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.
4. Export development fund: This gives financial assistances to
exporter to lower part of initial expenses for export promotion activities.
5. 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.
1.2
STATEMENT OF THE PROBLEMS
The country is currently
testing he bitter pill of economic set back resulting form over reliance on one
export commodity oil to country can achieve any meaningful economic prosperity
by producing for home market alone and no highly developed country can maintain
a high growth rate if it neglect export.
Export development and
promotion I one of three factors of development through industrialization as it
is currently practiced.
The other two facets are
mini 9000 import substitution and will run out by the end of this decade it
then because inevitable that our export potentials must be fully exported and
that the bank role in export promotion must be discovered and fully practical zed.
1.3 OBJECTIVE
OF THE STUDY
The objective of this
study see out here to
a.
Analysis the trend of export with Nigerian economy.
b.
Point out the role of bank in export promotion and ultimate economic growth.
c.
Present the prospects of Nigeria export within and outside African.
d.
Make recommendation based on problem identified on how fully integrate the bank
and bring them to participate fully in export promotion in Nigeria.
The study point out that
to achieve a meaningful growth emphases must be laid on export promotion which
is an expect of economic diversification it goes to reveal that bank have a lot
of do in this area and that for the bank activities to be full exploited their
must be increased awareness of their rules for the bank than selves potential
exporter an of her agencies involved in the export business.
Also important to note
is that there has to be a package of incentive form the federal government to
attract the bank of he aspect of the economy the crux of the study is to stress
that the banks which are of immense important in export business are doing
little in this direction and to present a carefully adopted will revalued this
poor situation.
1.4 SIGNIFICANCE OF THE STUDY
This research is quite
significant given benefit of a good export promotion for economic growth export
promotion helps to determine the role of bank in export business the role of
this is an effective and efficient performance.
This research report
will be of great benefit of the bank who will gam a lot the role or the export
promotion is favourable on their own side the implication is a harmonious
working environment synonymous with efficiently and effectiveness like wise the
school as a whole and other export in the Nigeria economy will benefit it. And
it is also significant because the finding and subsequent suggestions would as
well be of great service problem diagnosed on this research.
1.5 DEFINITION
OF TERMS
Economic
growth: This is a rapid and sustained rise
in real output per head and attendant shifts in technological economic
demographic characteristics of a society.
Economic
development: This is when an
economy generates an improved material well-being and a conformant reduction o
elimination of inequality and unemployment with the given society.
Commercial
bank: These are banks that deal with
acceptance and safe keeping of money and other valuables.
Department | Banking and Finance |
Project ID Code | BFN0136 |
Chapters | 5 Chapters |
No of Pages | 41 pages |
Methodology | Descriptive |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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