The Role of International Trade Finance in Facilitating Export Activities of Agro-Processing Firms in Kano State

This research explores the role of international trade finance instruments in facilitating export activities among agro-processing firms in Kano State, Nigeria. Kano is one of Nigeria's leading commercial hubs, with a substantial agro-industrial base involved in groundnut processing, leather tanning, and textile manufacturing for export markets. Despite this productive capacity, many agro-processing firms remain constrained by limited access to trade finance products such as letters of credit, export credit insurance, and pre-shipment financing. The study adopts a survey research design, collecting data from 90 agro-processing entrepreneurs and export managers through structured questionnaires administered across selected industrial clusters in Kano Municipal, Fagge, and Tarauni local government areas. Data are analysed using descriptive statistics and Pearson correlation analysis. The research investigates the awareness levels of available trade finance instruments, the perceived barriers to accessing them, and their actual influence on export volumes and market diversification. The theoretical framework is grounded in the pecking order theory of finance and the resource-based view of the firm. Preliminary evidence suggests that high collateral requirements, unfamiliarity with documentation procedures, and distrust of formal banking channels are critical obstacles. The study recommends that commercial banks, the Nigerian Export-Import Bank, and trade promotion agencies intensify outreach programmes and simplify application processes for trade finance products. Findings are intended to inform policies that unlock the export potential of Nigeria's agro-processing sector. Keywords: trade finance, export, agro-processing, Kano State, letters of credit