Page 27 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.73, # 2, 2016, pp. 27-41

EXPORT PROMOTION IN NIGERIA: HAS THE IMPACT OF BANKING
SECTOR REFORMS BEEN FELT?

Chibuike R. Oguanobi
Ph.D., Department of Economics, Chukwuemeka Odumegwu Ojukwu
University, Igbariam Campus
E-mail: [email protected]

Geraldine E. Nzeribe
Ph.D., Department of Budget, Planning, Research & Statistics, Njikoka Local
Government Council, Anambra State

Chukwunonso S. Ekesiobi
Department of Economics, Chukwuemeka Odumegwu Ojukwu University,
Igbariam Campus

Received 22 September 2016; accepted 12 December 2016;
published online 26 December 2016

Abstract
Over the years, monetary authorities in Nigeria have faced the challenges of
identifying a policy suitable enough to enhance diversification of the economy. The
most desired end of this diversification is economic self-sufficiency and subsequent
promotion of export trade. The government of Nigeria first established the Nigerian
Export Promotion Council (NEPC) to enhance export promotion. In 2004, the
Central Bank of Nigeria introduced reforms in the banking sector of the country to
enhance the contribution of financial institutions towards the promotion of export
industries. However, despite all these efforts, exports have contributed only little to
the country‟s GDP. Hence, this study ascertained if the banking sector reform
introduced over the years have improved the contribution of export to Nigeria‟s
economic growth. Applying the dummy variable approach to this structural
sensitivity problem, it was found that Nigeria‟s GDP responded insignificantly to
export both prior to and during the banking sector reforms. This could imply that so
far, the reforms had no serious effect on the economy, with respect to its objective of
supporting local industries in their efforts to contribute to the diversification of the
country‟s export trade.

Key Words: Export Promotion, Banking Sector Reforms, Economic Growth, Nigeria.

JEL classification: F40, F41, F43

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