For the past few years, it is Cleary that the present civil administration is posed to see an improvement in the external trade sector of Nigeria economy. This is geared towards increasing the export activity and reducing to a minimal level, the rate of import transaction as a measure to boost our country’s  external  reserves. This trend is buttressed by the various policy stipulations and regulation as well, as incentive dished out by the federal government  to participant in the  external  trade sector, most especially the export sector. The owns of  this interest by various  levels of  government  is hinged on the need to  boost our foreign reserves which was previously depleted by import that  swept through the country during oil boom era and second republic .

There is also the urge to restage agricultural sector which contributed immensely to our export  earnings prior to the oil era, since earnings derivable from oil export can no longer be adequate derivable form oil export can no longer be adequately predicted.

The aims and objectives outlined above cannot achieved without adequate participation of financial institution and intermediation most especially commercial banks, thus various government policies are usually implemented through that financial institution in the country.  Thus a tight monetary policy disfavour a particular sector of the economy.  Also, there is the case of inauguration or enactment of policies, be the government, and their actual implementation by the financial institutions  commercial banks. This research will be limited to commercial bank, the live wire of every government  in the execution of monetary policies, aimed toward different sector within the economy and the external trade sector which is within the economy structure, so the participation commercial banks is very important in the realization of the above objective relating to the external  trade sector .

The word financing relates to the provision of fund when and where they are required for the implementation of economic activities of man. Taken the definition into consideration the external trade  financing will than porting the technique of providing fund by various financial institutions, individuals corporate bodies and government that engage in external trade  business. This financing function comes in different ways and various instrument abound  for the smooth facilitation of  this financing activity for and the  instruments  that go with it, is a function of whether we are concerned with import trade financing or export trade financing both of which falls under external trade financing. For the purpose of the project. Work emphasis will be placed on historical analysis of trends in import and export sector of the economy in past five years so as to the determined   how vibrant form of financing available for the smooth operation of the sector. This analysis will be done on the basis of economic needs and aspirations of nation in the relevant periods.