Nigerian trade finance experts call for government action to balance trade relationships following annual survey
Nigerian trade finance experts call for government action to balance trade relationships following annual survey
In the bustling streets of Lagos, where the heartbeat of Nigerian commerce resonates, a groundbreaking event unfolded on April 13, 2024. The Nigerian Trade Finance Skill Gap Assessment Survey, a beacon of insight, shed light on the challenges veiled within the corridors of the country's banking industry.
The President of the Lagos Chamber of Commerce and Industry, Mr Gabriel Idahosa has said that the clear cut way to improve on the nation's economy and create new jobs is for government to address the trade imbalance especially export with other trading partners.
The LCCI President gave this advise at the unveiling of the Annual Trade Finance Survey in Nigeria, 2024 put together by the 3T Impex Consulting Limited held at the LCCI Building, Alausa.
Revealing Revelations: The Survey's Voyage of Discovery
Training Deficit: Like seeds planted on barren soil, half of the bankers treaded the terrain of trade finance without the nourishment of international trade training.
Certification Conundrum: Amidst the vast sea of bankers, only a brave few—12% in trade services units and a mere 1% in marketing—boasted the badge of trade certification.
Navigating Knowledge Gaps: In the labyrinth of international trade operations and financing, 38% of bankers grappled with the shadows of knowledge gaps.
The Paradox of Experience: Even seasoned sailors, with 6 to 20 years of banking experience, found themselves shipwrecked amidst the tumult of knowledge gaps, comprising a staggering 65% of the survey's participants.
The Elusive Quest for Certification: Despite the promise of promotion, as 30% of Key Performance Indicators (KPIs) danced with the allure of trade certification, only 2% embarked on the voyage.
A Yearning for Training: Like ships longing for the guiding light of the lighthouse, 78% of participants sailed through the tempests of international trade without the beacon of training.
The Challenge of Letter of Credit: As the compass needle quivered, only 24% of participants boasted mastery in handling Letter of Credit transactions, while a meager 12% deciphered the enigma of the UCP600 rules.
Bill for Collections: A Dwindling Confidence: A scant 22% dared to navigate the waters of bill for collections transactions, with a mere 9% deciphering the cryptic language of the URR522 rules.
The Puzzle of Incoterms 2020: Amidst the labyrinth of trade agreements, only 15% grasped the intricacies of the Incoterms 2020 rules.
The Scrutiny of Documents: Like scribes in search of ancient scripts, only 22% and 21% of bankers respectively felt adept at examining letter of credit documents and handling discrepant documents.
Navigating Regulatory Waters: In the murky depths of government regulations, a scant 15% held the lantern of understanding for import and export transactions.
The Shadow of Money Laundering: Like ghosts haunting the corridors of finance, 73% of bankers remained shrouded in ignorance concerning trade-based money laundering and terrorist financing.
A Blindness to Red Flags: Despite the winds of caution blowing, an alarming 81% remained blind to the red flags signaling the treacherous waters of money laundering and terrorist financing.
The Scrutiny of Documents: Like scribes in search of ancient scripts, only 22% and 21% of bankers respectively felt adept at examining letter of credit documents and handling discrepant documents.
Navigating Regulatory Waters: In the murky depths of government regulations, a scant 15% held the lantern of understanding for import and export transactions.
On his part, the Registrar of the Chartered Institute of Bankers of Nigeria, Mr Akin Morakinyo was of the view that the country must break the yoke of the trade deficit in export.
He pointed out that lack of data constitute a major problem to our economic improvement adding the decadence in the educational system remain a big challenge.
According to him, Singapore thrives on education while every community in China is assisted to produce something to keep citizens engaged thereby resulting to huge exportation.
As the survey unfurled its findings like sails in a tempest, it revealed a sobering reality: a chasm yawned in the understanding and competence of Nigerian bankers in the realm of international trade.
This deficiency, a tempest brewing on the horizon, threatened not only the stability and profitability of banks but also cast a shadow over Nigeria's trade prospects. Inadequate expertise risked financial losses, tarnished reputations, and deterred foreign engagement, stifling the country's economic growth.
Dr Bamidele Ayemibo who is the lead consultant at the 3T Impex Consulting Limited recommended that the country must improve on the use of Technology in Trade transactions to avoid issue incase of pandemic that orchestrates lockdown in the future.
He recalled that the Covid 19 pandic caused major setback to export trading in particular among the developing countries.
Ayemibo stressed the need for proper understanding and monitoring of Trade Finance and international trade among Bankers.
The 3T Impex Consulting Limited boss also emphasised the need for specialised programmme for trade finance as it relates to functions of bank staff.
While sharing their experiences at the 3T Impex Trade Academy, Emmanuel Agada, a finacial Expert described the training as highly practical and engaging.
He noted that wholistiic approach to export was thought saying the lectures was simplistic.
The financial expert disclosed that the six month intensive course broaden their knowledge on how to mitigate risk in the line of duty.
Babajide Olayinka of the Training Finace and Treasury Department in BUA Cement lamented over lack of due recognition to trade financing in most companies.
He said that some manufacturers also neglect the trade financing for Treasury aspect.
A Call to Arms: Charting a New Course
Yet amidst the storm, a beacon of hope emerged. The Nigerian Trade Finance Skill Gap Assessment Survey served as a clarion call for action, urging the banking sector to embark on a voyage of enlightenment. Through targeted training programs, curriculum enhancements, and policy interventions, the industry could navigate the treacherous waters ahead and emerge stronger, more resilient, and better equipped to steer Nigeria toward a brighter future in international trade finance.
As the sun sets on this chapter, the promise of a more knowledgeable and prosperous Nigerian banking industry looms on the horizon, beckoning all to set sail towards a new dawn of excellence and innovation.
For those daring souls ready to embark on this journey of transformation, the Nigerian Trade Finance Skill Gap Assessment Survey awaits, ready to illuminate the path forward.
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