Trade Credit Usage, Financial Constraints, and Export Performance Among Non-Oil Exporters in Nigeria

This study examines the role of trade credit in mediating the relationship between financial constraints and export performance among Nigerian non-oil exporting firms, filling a gap in the literature on alternative financing mechanisms for export-oriented SMEs in developing economies. Access to bank credit remains severely constrained for many Nigerian exporters, yet inter-firm trade credit arrangements constitute an important but understudied source of working capital that may enable constrained firms to sustain and grow their export activities. The research employs a panel data design drawing on three waves of enterprise survey data collected by the World Bank and the Nigerian Investment Promotion Commission from non-oil exporting firms across agricultural processing, light manufacturing, and solid minerals sub-sectors. Fixed effects panel regression is used to estimate the relationship between trade credit usage, financial constraint indicators, and export performance outcomes including export intensity, export revenue growth, and market diversification. The theoretical framework draws on financial intermediation theory, the pecking order theory, and the resource-based view of export development. The study controls for firm size, age, sector, and access to formal credit. Findings are expected to reveal that trade credit significantly mitigates the negative export performance effects of bank credit constraints, particularly for firms with established buyer relationships in ECOWAS markets. The study contributes methodologically by applying panel data approaches to a Nigerian export finance context previously dominated by cross-sectional research. Recommendations include formal recognition and risk guarantee mechanisms for inter-firm trade credit arrangements in Nigerian export finance policy. Keywords: trade credit, financial constraints, export performance, non-oil exports, Nigeria