Trade Finance and Export Competitiveness of Nigerian Non-Oil Firms

Trade finance instruments including letters of credit, export credit guarantees, documentary collections, and supply chain financing are critical enablers of export activity, particularly for firms in non-oil sectors seeking to compete in regional and international markets. This study examines the relationship between access to trade finance and export competitiveness among Nigerian non-oil exporting firms in the agricultural, solid minerals, and manufactured goods sectors. Primary data are gathered from 100 exporters and their trade finance providers across the South West and South East zones through structured questionnaires and in-depth interviews. The study measures export competitiveness through indicators including export volume growth, product diversification, market penetration depth, and unit export prices. Data are analysed using regression analysis, propensity score matching, and qualitative thematic analysis of finance access barriers. The theoretical framework integrates trade finance theory, the resource-based view of export competitiveness, and the financial constraint-export performance literature. The study evaluates the role of the Nigerian Export-Import Bank's facilities, the Central Bank of Nigeria's Export Facilitation Initiative, and commercial bank trade desks in supporting non-oil export activity. Existing literature from Nigeria and comparable African economies confirms that trade finance gaps are among the leading constraints to non-oil export growth, disproportionately affecting small and medium-sized exporters relative to large multinationals. Findings are intended for the Nigerian Export-Import Bank, the Federal Ministry of Industry Trade and Investment, and the Central Bank of Nigeria's trade and development finance division. Keywords: trade finance, export competitiveness, non-oil exports, Nigeria, export credit