Concept:Balance of payments deficit occurs when a country’s payments abroad exceed its receipts from abroad.
The question asks for the option that is
NOT a cause of such a deficit in Nigeria.
Explanation:The typical causes of BOP deficits include poor non-oil performance, heavy debt servicing, and lack of import substitution industries.
These reduce foreign exchange earnings or increase foreign exchange spending.
Export promotion is a policy designed to increase sales abroad and improve the BOP position.
Therefore, export promotion is not a cause of BOP deficits; rather, it helps to reduce them.
Answer:B. Export promotion