Trade Service Expert, Abimbola Bobadoye, has emphasised the crucial role of international trade and access to trade finance in driving economic development, stressing their significance for any nation’s prosperity.
In a media statement, Bobadoye stressed on how trade finance boosts global trade by bridging the gap between buyers and sellers, ensuring smooth transactions through a trust-based payment system.
She added that this creates an environment where trade and finance can flourish. Despite the global benefits associated with international trade, Bobadoye notes that Nigeria has not fully capitalised on these advantages.
She pointed out that Nigeria is often perceived as a high-risk market by international commercial lenders, resulting in inadequate financing relative to the country’s needs. Given Nigeria’s significant dependence on imports, there is a heavy reliance on credit from both local and international banks to finance import activities, she said.
Addressing the issue of currency risk is paramount, according to Bobadoye. She asserted that mitigating currency risk is essential for reducing the perception of risk and enhancing access to trade finance for companies across Africa.
Bobadoye’s statement gives credence to the need for proactive measures to manage currency risk effectively, thereby bolstering investor confidence and facilitating increased trade finance availability for businesses operating in the region.
In light of these observations, Bobadoye recommended several measures to address the challenges facing Nigeria’s trade finance landscape including implementing policies aimed at improving the country’s risk profile to attract more favourable terms from international lenders.
The expert also emphasised the importance of fostering collaboration between public and private sectors to enhance trade finance accessibility and support economic growth initiatives. Bobadoye’s insights shed light on the critical importance of international trade and trade finance in driving economic development.
Her recommendations offer valuable guidance on addressing the challenges hindering Nigeria’s trade finance landscape, ultimately contributing to the nation’s economic growth and prosperity.
