FOREIGN TRADE FINANCING AND ITS IMPLICATIONS FOR PUBLIC HEALTH: A NIGERIAN PERSPECTIVE

Abstract

The study examined the effect of foreign trade financing on life expectancy in Nigeria spanning from 1981 to 2022. The study makes use of secondary data (time series) from various sources which include; the Central Bank of Nigeria Statistical Bulletin and Annual Report (various issues), and World Development Indicators. Variables used for the study include Deposit Money Banks’ Credit to Export Trade, Deposit Money Banks’ Credit to Import Trade, Nigeria Export and Import Credit, Letter of Credit, and Exchange Rate as explanatory variables, while life expectancy serves as the dependent variable. The Eview10.5 Software was used to empirically and econometrically analyze data and ARDL was used as the method of estimation. The findings from the result showed that NEXIMC bank credit has a positive effect on life expectancy in the long run an increase in export trade credit has a positive effect on life expectancy, deposit money banks credit to import trade has a positive effect on life expectancy. The study concludes that international trade financing using deposit money bank loans positively affected life expectancy in Nigeria. The study therefore recommends that infant industries should be allowed to face competition with their counters to enable them to improve the quality of export goods shortly. Credit to the private sector should be channelled into the production of capital goods and services which will attract more foreign exchange into the country. Also, import trade should be more on capital-intensive goods where Nigeria has a disadvantage in either production or expertise.