Evaluating the Effectiveness of Nigeria’s Export Financing Programmes in Boosting Non-Oil Exports

Abstract

Nigeria has long sought to diversify its economy by expanding non-oil exports, yet the sector remains underperforming. This paper examines the effectiveness of Nigeria’s export financing programs – including interventions by the Nigerian Export-Import Bank (NEXIM), the Export Expansion Grant (EEG) scheme, Central Bank of Nigeria (CBN) facilities, and related initiatives – in stimulating non-oil export growth. Using a descriptive methodology with secondary data (from government reports, news articles, and academic studies), the analysis reviews program structures, funding disbursements, and trade statistics. Nigeria’s non-oil exports have shown recent upticks (e.g., reaching ₦3.17 trillion in Q1 2025 and US$3.225 billion in H1 2025), but these remain a small share of total exports. NEXIM and CBN programs have injected substantial credit (e.g., NEXIM reports ~₦420 billion disbursed at single-digit rates, creating ~12,000 jobs), yet empirical studies suggest limited impact on aggregate export growth. The EEG has faced implementation challenges and suspensions. Inadequate infrastructure, bureaucratic bottlenecks, and informal trade further constrain results. The paper concludes that while export financing is a necessary support, its effectiveness is hampered by systemic issues; recommendations include improving program administration, enhancing market access, and complementing finance with structural reforms to maximize non-oil export potential.