Exportation Of Made In Nigeria Goods

Exportation Of Made In Nigeria Goods

 Exportation Of Made In Nigeria Goods – Harnessing Nigeria non-oil product for export is government policy of promoting the product by providing various export incentive as well as volatility of the international oil market.  In 2002 this was almost in jeopardize due to Federal Government inability to realize its revenue project from crude oil exports.  The emergency of oil and the national economy since the early 1970’s making the sector the major contribution to government revenue as well as foreign exchanging earning led to the neglect of the other sector of the economy and create serious structural imbalance in the economy.  From 58% in 1970’s oil contribute to total export earning increases to 98% in 1982 dropping slightly to 90% in 2000.  in spite numerous government effort, to promote non-oil export the sector remain depressed, accounting for between 3.5%of budgeted foreign exchange revenue.

BACKGROUND OF EXPORTATION OF MADE IN NIGERIA GOODS

Before the discovery of oil, the main stay of Nigeria economy was agriculture such as palm oil, cocoa, cotton groundnut, rubber, palm kernel etc which enjoyed encouragement and supports in policy implementation accounting for about 80% of Nigeria total revenue.

In 1965, non-oil export accounted for as much as 76% of Nigeria foreign exchange earning, in 1970 it was 43% but in 1976 the share of non-oil export falls to 6% and by mid eighties, the sector remain structural imbalance in the economy and thereby had to import some of this product.

However, the discovery of crude oil since mid seventies increased total earning from 58% to 98% which is the peak of oil boom as crude oil quite, price of crude oil drop slightly to 90%.  It is against this background that Nigeria need to re-appraise her strategies in the exportation of non-oil export.

Export promotion management was adopted early sixties by international trade centers UNCTAD/GAT as strategies for effective enhancement and development of international marketing of export products in developing economics in world trade.

Export promotion is designed also to assist in booting debts servicing, purchase of basic imput and responsible of promoting non-oil export in Nigeria.  It is against these backdrop that the council was establish by decree 26 of 1976 under Murtala/Obasanjo regime and later in 1988 under Ibrahim Babaginda, NEPC was revisited and reorganized under decree 41 of 1988.

Although, it has some successes but suffice to say that it is saddled with problems as yet to record excellent compared to its set objectives.

PROBLEM ASSOCIATED WITH EXPORTATION OF NIGERIAN GOODS

The problem associated with the subject matter is listed below;

1.       To evaluate or ascertain the management strategies adopted by the Nigerian Export Promotion Council (NEPC)

2.       To ascertain the root causes of low percentage in the foreign earnings from non-oil export.

3.       To ascertain problems facing NEPC in achieving its goals and objectives.

THE PROBLEM THE STUDY WILL BE CONCERBED WITH

Since the mid eighties when the world oil glut started, Nigeria government has seen the need to diversify her economy rather than maintain its present monostructured economy with petroleum oil as its major source of revenue.

This obviously implies that Nigerian has paid less attention to the promotion and export of agriculture product such as groundnut, cocoa, cotton, palm oil, rubber, and palm kernel as well as solid minerals.

Consequent upon the above development, the Nigeria Export Promotion Council (NEPC) was establish in 1976 and charge with responsibilities to develop marketing strategies which will leads to they recovery of the economy from its presents doldrums.

Again in 1988 the Nigerian Export Promotion Council (NEPC) was reorganized with a view to direct to council towards an increased productivity and more positive results but up till now, the proceeds from non-oil products have not improved.

The specific problem the study will be concerned with includes the following:

1.       To what extent have the bottleneck in export business discouraged potential exporters?

2.  Could lack of adequate export incentives be a coq in the wheel of export business?

3.  Is the fluctuating naira – dollar exchange value effect of the level and value of non-oil export?

4.  Does Nigeria export promotion council; (NEPC) programmes faces or indicating danger?

IMPORTANCE OF STUDYING THE EXPORTATION OF MADE IN NIGERIA GOODS

The importance if properly managed would lead to economic progress which is a means of facilitating employment and enhancing the standard of living of its citizens considering this fact, the federal government has tremendously given attention to non-oil exports.

Also it will be of immense benefits to the organized private sector and public sector to be involved in export business.  It will help many small scale exporters to succeed in export businesses, apart from surmounting the problem in exportation, be acquainted with ever changing government policies, financing provisions and having business acumen.

There is a lot of opportunities in export business but ignorance scare many small scale exporters away but few immensely contend these risk.

 DEFINITION OF IMPORTANT TERMS

The study talks about the following terms which are very important;

1.       QUOTAS

It is a system of limiting import by fixing their permitted value in advance for a period.

2.       LETTER OF CREDIT

it is a financial document issued by one bank to correspondent bank instructing it to pay money to a third person.

3.       TARIFF DUTIES

This is whereby one imposed for one or two reasons for revenue purpose and protection of home industries.

4.       DUMPING

This is where the selling below cost in the export market.

5.       DRAWBACK

The repayment of tariff duties on goods and raw materials are subsequently used for export.

6.       TERMS OF TRADE

The ration of the price of imports to the price of export is not the same.

7.       VALUED ADDED TAX (VAT)

This was introduced in Britain, 1973 and levied in all the combines features of both single and multi-stage taxes applies at each transaction but only to the value added.  The intention of VAT is that the exporter will be the tax.

LITERATURE REVIEW

The following scholars, writers and Authors among other based their theoretical framework of this study on views.  This is a trade strategy, which encourages production for international market and in which there is an embedded bias or incentive towards production to meet international standard which must favour production of export without jeopardizing production for domestic market.  If the product is been jeopardize it will be other way round, just take for instant of a real life problem which occurred recently.  The Nigerian Bottling Company Plc had introduced a new soft drink, called Fanta Chapman in the Nigeria market.  The product attracted much attention at the time due to the television and other medium advertising used to promote it.  Many consumers were stimulated and they wanted to try the new product they thought the product would be like the older brands of the company which gave them the desired satisfactions.  But it turned out that the expectations of the company and consumers were not fulfilled.  Instead of the product catching on and receiving continued consumer patronage, it had dwindling sales after the initial excitement.  The consumers had not accepted the product because of one reason or the other.  The product had failed in the market.  Based on the manifesting phenomenon or problem, PRODUCT PERFORMANCE IN THE NIGERIA MARKET.  A case study of Fanta Chapman.

 —————-This article is not complete———–This article is not complete————–—-

  This article was extracted from a Project Research Work Topic

“A CRITICAL APPRAISAL OF THE STRATEGIES OF THE EXPORTATION OF MADE IN NIGERIA GOODS AS A TOPIC CHOSEN FROM MARKETING FIELD”

RECOMMENDED TOPICS

[simple-links category=”3213″]