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Non-oil exporters dialogue (Forum 6)

Micro, small and medium-scale enterprises are significantly represented among businesses involved in formal and informal cross-border trade and non-oil export, but many are unable to participate competitively due to challenges in the business environment. To support efforts to effectively position Nigeria’s micro, small and medium-scale enterprises for the global market, Policy Development Facility Phase II organised a series of forums aimed at improving access to finance for non-oil exporters and at developing non-oil exports in Nigeria. This report summarises the sixth forum in the series, and focuses on ‘Improving Trade Competitiveness and Business Environment in the South East’.

Improving Nigeria’s Non-oil Exports: Aba Industrial City

Aba Industrial City is an aggregation of thousands of MSMEs and mass producers of industrial goods including garment and leather products. If properly harnessed, the mass production capacities of component clusters of AIC and similar models are capable of positioning Nigeria at a competitive advantage in the global garment and leather industrial space. In 2016, the Textile, Apparel, and Footwear sector contributed N2 trillion ($6.6 billion), approximately 2% of Nigeria’s total GDP, to Nigeria’s economy.

PDF II held a two-day capacity building training themed: “Capacity Building for Banks and DFIs”. This is designed to explore access to finance challenges, awareness campaigns, and opportunities that non-oil exporters face with banks in accessing finance. The capacity building covered topics such as Export Industry Regulations and Documentations, payment methods and trade finance instruments, Handling export finance options, managing export risks, understanding the franchising potential etc.

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