ABSTRACT

The study was on impact of non oil export financing and promotion by banks on Nigerian economy. Secondary sources such as CBN reports, journals and other macro economic publications were used in generating data. Tables, bar chart, regression and correlation were data analysis. The result from the study shows that there was a decreasing trend in the financing of non oil export activities. However, financing of non oil export activities by banks was highest in the 2006. Provision of export credit guarantee and export credit insurance to non-oil export, the provision of credit in local currency to support exporters, maintain of a foreign exchange revolving fund for lending to exporters who need to import foreign inputs to facilities export production, provide domestic trade with insurance to assist exports, establish and manage funds connected with export were major issues government and relevant financial institution are to pay attention to. More so, money supplied was positively related to significant to bank financing of nonoil export. The result from the study shows that revenue from non-oil export was also positively related to exchange rate. Furthermore, revenue from non-oil export and GDP were positive and significant variables influencing the financing activities of non-oil export in Nigeria. In conclusion, poor market knowledge as a result of poor communication networks and uncomplimentary macro-economic policies within the economy were some of the problems identified from the study. Government and relevant financial institutions should implement measures that could increase regularly the amount of funds for non-oil export purposes. This measure would stimulate the production of non-oil export and facilitate the export of non- oil export goods and services thereby improving the country's competitive status in foreign trade market. Government should implement measures that will reduce high market and product concentration at the domestic market. Finally, government should implement measures that will reduce levies and charges on non-oil export goods and services in order to attract more investors.