THE PROBLEMS OF FINANCING INTERNATIONAL TRADE IN NIGERIA
TABLE OF CONTENT
Table of content
1. Background of the study
2. Statement of the problem
3. Objective of the study
4. Research questions
5. Research hypothesis
6. Significance of the study
7. Delimitation, scope and limitation of study
8. Definition of Terms
2. Review of related literature
1. An overview
2. International cash flow in trade.
3. Role of international cash flow in trade.
1. Risk factor in international cash flow.
2. Trade Restriction and Govt policies
3. Effects of Restriction on trade
4. Major problems of financing international trade.
5. Cash flow problems in trade
1. The policy Trust of SAP
2. The positive impacts of SAP on the economy.
6. Objectives of SAP
3. Research Design and methodology
1. Primary Data and sources.
2. Primary data
Source of data
Secondary data and source
Source of secondary data
Method of investigation used
Area of the study
The target population
Sample size used
Technique of data
The formular (chi –square)
Presentation and Analysis of data
Test of hypothesis
First Null Hypothesis testing
Second Null hypothesis testing
Third Null Hypothesis testing
Fourth Null hypothesis testing
Research, findings, Recommendation and conclusion
BACKGROUND OF THE STUDY
The Nigerian economy has since the early 1990’s been faced with adverse financial constrains especially in its international trade. This can be traced to the responsible fiscal policies enacted during the oil boom period. The sought increase in the volume and value of oil exports since the early 1990’s especially in 1990/91, placed the oil sector as the mainstay of the Nigerian economy, not only in terms of foreign exchange earnings but also as the source of government revenue and domestic liquidity.
The huge revenue from oil stimulated a phenomenal increase in government expenditure and increased the public sector participation in the whole economy, such excessive government spending spilled into the rest of the economic sector and generated an unsustainable growth in economic activities. In particular, the pattern of investment shifted mainly to construction and services sectors to the detriment of productive sector that is industrial and agricultural sector which had hitherto been the sole earner and should provide the basis of economic growth. The slump in oil prices created a weakening of the international oil market from the early to mid “90”s. This phenomenon, exacerbated the problem already existing from the imbalance experienced in the preceding decade. Following the glut in the market, oil price dropped from $40 to $35.5 per barrel and continued to slide thereafter till it reached to roughly $12 per barrel. Consequently, oil export revenue which had accounted for about 95% of Nigeria’s exchange earning dropped sharply.
Moreover, the glut also forced production down by 0.4 million barrels per day as at the middle of 1991, and dropped further to 0.6 million barrels per day, during the first quarter of 1992. the oil glut and the attendant low unit prices of oil signaled the beginning of economic recession for Nigeria.
As a result of there economic recession, the country’s ability to meet its trade obligations became seriously compromised. It became necessary for trade partners to request new terms of trade and re – negotiation of existing loan and credit, subsequently, the country external payment position was adversely affected. A good example of this was manifested in the extort value which...