 Welcome back. It's still news now on plus TV Africa. We're just taking a look at the twenty twenty to trade finance survey And we have a financial analyst with us Beaudu or local just before the break up your day I was asking some of the major findings of this trade survey which revealed that night 4% of exporters experience rejection of their request by commercial bank. Is it a niche of documentation or what exactly? Thank you very much. I Can tell you categorically is more of documentation because banks deal in documents and they want the whole process of Export financing to be documented. So for any bank to give you a facility. They want to see Documentation to show that you have the capacity meaning you have exported several times You have completed all the forms to show that you and had a contract You completed your NXP you had your bill of didn't showing that you have the exporter than the exporter proceed comes in So banks wants to see the documentation from trigger to finish and sometimes some of the customers or some of this Exporters don't have the documentation One of you look at the export of the item and be sure it is profitable So we need documentation to show that you have all what we need in terms of capacity we shows that you've exported before in terms of Collateral in terms of bill of living and every other thing to show that you have exported before we want to see it I want it documented But unfortunately most of the exporters today don't document some of these things and they want banks to use proxies So it is documentation issues once they get the documentations, right banks will do most of the financing Some documentation right now. I'm looking at the 21% of the rejected export financing request Which was actually based on inadequate or lack of you know collateral security Or some people would say that most times when they approach them financial institutions for some of their request or Funding issues that they are the requirement of these banks in terms of security Usually too high. Do you agree? Okay. Thank you very much. I would say the requirements are not too many Because bands actually let depositors phone and want to protect the depositors phone from being left recklessly So most of them sometimes from care of collateral and I would like to know that collateral is flexible It will come in them in different forms. It will come in form of leger market securities. I mean when I mean securities, I mean Either I mean treasure bills. It will come in form of a nine separate insurance It will come in form of development back of Nigeria a part credit insurance It will come in form of warehouse receipts So these are flexible ways of providing collateral that if customers And combine one or two of these the banks will be ready to finance them So collateral is a major issue and I've just stated the flexible forms of collateral Which banks can either adopt and solely or combine them to ensure that we actually lend to Customers Ensure that we monitor the money that will be lent with lent to the customers and ensure that Export is carried out and that's what proceed comes in and the cycle continues on to you make Many mocks many more expert us and the expert proceed of Nigeria we increase whilst we grow the result of the country All right, let's bring in doctor Femi Egbeshola now president of Aspawn That's association of small business owners in Nigeria into this conversation We've been talking to the analyst and he's identified the bulk of the problem But I just want to feel the pose of exporters now which are actually represented in your Association, you know major finance of the trade finance revealed that 94% of your members experience rejection No, and a local has actually said that it is as a result of documentation and lack of You know Collateral security. I just want to get your reactions concerning that doctor Egbeshola Yes, thank you very much. Well, like you have just stated the level of rejection at the very very high when it comes to access and finance for exports And I believe that one of the bigger reason why is like that is because The capacity of the exporters has not actually been built in now Domains particularly needs to do more capacity building so that exporters will actually know what is required of them before they go for finance For example in our association We have quite a number of rejection also and sometimes it is because we the exporters are not Actually prepared enough for the right documentation and the requirements that the banks may need Aside from that too. We have also been able to see that the banks are also passed to Financing exports. I don't really know why but then many banks do not really want to support a financing of an exporters And that is not good for a country because the best way to get a funding and resources for the country now Is to go into non oil exports? Well, we are clear that the government to introduce today They said about of Nigeria introduced the RC 200 the program whereby they expect to raise about $1 billion in the next three to five years and this has created a lot of windows of opportunities for Accessing finance But what we have also discovered during this process is that them the requirements are cumbersome the time frame for Application to get it to know whether your application is granted or not What except food or not is so long and then there are a lot of bottlenecks I think government needs to put in some key Indicator performance index to be able to monitor their policies when government does policies in the particular sector There's need to monitor to do a monitoring of the impact and assessment of this policy Such that they will know when it is actually successful or not And I don't say being on the paper as far as this out to the program is concerned to us We have we feel that them the process has not been beneficially enough for people because I've never been actually would be able to access this funding and these windows of Opportunities, we also feel that the banks now are also Doing some capacity building we expect a number of banks now ready to do workshops seminars and symposiums to be able to sensitize the exporters about what is expected of them when We want to encourage We want to encourage by the number of exporters who also think this advantage All right, I'll get back to you now just before I bring you back Let me just quickly get some the opinion of family not family rather a beard. Oh local I'll do I really need to understand how High inflation rate and Forex have been attributed at some reasons for lack of growth of non-export volume in Nigerian a beard Very quickly. Thank you very much. You are spot on Inflation has been a deterrent to a lot of exporters so if you go back to the prices of agro commodities, it has more than World triple within the last one year So an exporter that either to now meet say ten million dollars to export a container of Abyssal's flower will now be needing close to like four times of that to do the same business So inflation has negatively affected the exporters and it has reduced your capacity to export However, for foreign exchange the exporter is actually benefiting from Depreciation in Naira. So whenever exchange rates or Naira depreciates exporter Will be better off because it's going to get more Naira than if Naira was appreciating So inflation will have a negative impact because you will not be able to export as much About a foreign exchange you actually be positive for them. All right So it will be positive impact for foreign negative impact for inflation. All right, just before we go now Dr. Egbeshola I need to understand that 57% of exporters have actually identified Access to export finance port logistics and delays by government agencies at the port How do you really react to this at Dr. Egbeshola? Well from our side, we have been trying to see how we can break down some of the bottlenecks that our export members face, particularly at the point of sending the products to other countries And both one of the things we have been able to do is to meet with the relevant agencies one-on-one to discuss with them the particular Colleges that we are facing and see how we can profile solutions We have been able to make them understand that we really need to collaborate. The business community really needs to collaborate With the agency that are inside of export for us to be able to have a seamless export process such that The exporters will not be discouraged and we will be able to raise more revenue for the country through Forex And that's exactly what we are on in the association right now All right. Thank you so much. I'm gentlemen We were joined by Dr. Femi Egbeshola president of Aspone that is an association of small business owners of Niger And of course a Bjojo or Loko a financial analyst. Thank you so much gentlemen for your time All right moving on right now a federal high court in Abu Dhabi has set aside its order Committing Osman Baba inspector general of police to imprisonment for contempt The court had on November 29 sentence the IGP to three months in prison for these sub bane a court order Now the presiding judge mobile a geo large or had convicted the IGP following a suit filed by Patrick O'Callie For my police officer who claims he was unlawfully and Composedly retired from the Nigerian police force. However, the IGP Fired a motion seeking in order to set aside the contempt proceedings and come until order on the grounds that he had Not been appointed into office when the case was instituted in Harul and today the judge said there was evidence before the court That the IGP had substantially complied or the order directing the reinstatement of O'Callie was compulsorily retired from the force