THE EFFICIENCY OF NIGERIA DEPOSIT MONEY BANKS IN FINANCING INTERNATIONAL TRADE

International trade, the major area of engagement in Nigeria's economy, heavily depends on the performance and efficiency of financial institutions (especially Deposit Money Banks [DMBs]) in the discharge of trade transactions. The DMBs engage in international trade via providing financial services, including letters of credit, trade finance loans, and foreign exchange services required by businesses to import and export goods. At the same time, a host of structural challenges including foreign exchange instability, high cost-to-serve, regulatory encumbrances, and cyber threats usually hike the inefficiencies encountered by DMBs in trade finance. The paper appraises the efficiency of DMBs in international trade finance in Nigeria evaluating their performance in international trade of goods over periods carving an opportunity during and after the pandemic, including analyzing the nature of trade finance provisioned by DMBs, while concurrently reflecting on salient factors inhibiting DMBs' efficiency in serving businesses' trade finance needs in Nigeria. DMBs perform painstakingly well in the international trade ecosystem, but great challenges potentially impede their ability to serve well while presenting practical opportunities towards improved efficiency and growth. The research distinguishes the performance of DMBs from those of the banks in competing emerging markets, thereby providing lessons and best- practice examples that can be borrowed for better service provision. It also discusses the role of the Central Bank of Nigeria in the sector and outlines crucial considerations such as regulations' impact and implications on banking performance and efficiency in achieving and supporting trade for Nigerian businesses