The Nigerian Export Promotion Council Strategies in the Export of Nigeria Goods

The Nigerian Export Promotion Council Strategies in the Export of Nigeria Goods

Overview of Export in Nigeria – As was said earlier before the advent of crude oil in the early 70’s the Nigeria economy was pre-dominantly agro-based. This sector provided the bulk of foreign exchange earning from around the mid 70’s the providence of agriculture was over shadowed by emergence of petroleum oil as the major foreign exchange earner. According to I.Yahoya (1994:3) export trade in Nigeria dated back to the pre-colonial period when the old Northern emirate traded with Afro-Arabs merchant and later the southern forest kingdom began to exchange goods with the European merchants. Trading then was mainly in salves, salt and arms. Latter come the colonial period when employments were shifted on exportation of primary products including Groundnuts, palm oil, cotton, cocoa etc.

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Nigeria then became the world’s largest producer of cocoa. It was also on records that she supplied half of the world’s export palm oil leading producer of tin. The production of these primary products declined since the discovery of crude oil. The contribution of these non-oil exports in the total export earning in Nigeria fell drastically in 1970 – 1975.
This economic downturn lead to the introduction of the structural adjustment programme (SAP) in 1986 which recognized the as one of its objective the rule non-oil export could play in diversifying the foreign exchange base of the nation thereby relieving the pressure in the balance of payment. This an aggressive export promote was introduced under the export (incentives and miscellaneous provisions). Decree of 1986 in a bid to stimulate the export of non-oil products Niyi (1986:10) in his paper “Export promotion in Nigerian Economy” believed that the Nigerian Export promotion council in a poorly financed environment with an ill defined rule. However he was quick at acknowledging the council’s achievement despite its shortcoming.
In the view of Maclina (1986:11) “Towards Nigeria’s Effective Export Drive” he shields council shortcomings by easer that at the time the council was established, it was easer to import rather than export.
However, coker Onita (1955:5) while appraising the council in his paper “How has the Nigeria Export promotion council forced” emirates the council from any blemish since according to this it was not easy to pot a price tag on the impact of the council strategy as the council those not handle exportation directly.
According to Alade (1983:56&66) in his paper “Export promotion as an industrialization strategy” he asserts that there are no industries that are export oriented to supply to manufactured goods for the foreign market to earn the country the much desired foreign exchange. He further argued that the available industries are not even competent to add value to the primary produce export from Nigeria.
The export oriented development strategy involved the formulation and adoption of comprehensive export incentive legislation known as the (Export incentive and miscellaneous provision) Decree No 18 of 1986
According Itegbe (1989:7) in his paper the potentials for non-oil export in Nigeria” he described the export decree as a “water shed” in the hidtory of export policy development in Nigeria. As he continued, for a country like Nigeria, export expansion and diversification strategy should be of national policy pursuit, hence the need to strengthen the export promotion framework was recognized so as the need to liberate export sub-sector.
While recognizing the input, which the Nigeria Export promotion council is making to export development, Mr. Itegbe observed that the manufacturing sector has been contributing meaningfully to the gross domestic product of the nation and to the export savings.

MEANING OF EXPORT PROMOTION
The concept of export promotion is relatively now in most third world countries through some countries in the third world such as India, Brazil, South Korea, Hong-Kong, Egypt and even Kenya have ling blazed the trial which Nigeria is trying to follow- export promotion as it is generally recognized begins with production of the export product and ends with the consumption of the product outside the country. Export promotion therefore entails planning for the identification and exploitation of the country’s exporty potentials. It is also includes the development of the nations export resources the provision of infrastructure facilities to aid the production and the marketing of the export products in the international market.
Why does individuals and countries clamor for export. Export objective vary from country to country. Onah (1990:95) in answer to these questions gave the following factors as collectively or individually influencing a businessman decision to export.
a.    Enquires from overseas viz from foreign importer
b.    The need to find new market if demand at home is limited
c.    Pursuit of higher profit margin.
d.    Pursuit of higher sales volume on order to secure economic of scale in production and marketing.
e.    As a means of extending the product life cycle
f.    To iron out seasonal fluctuations in demand
g.    As a means of risk spreading (for example if tax rates in the home market burden some)
h.    As a means of becoming as international company.
The consumer derives a welfare benefit from the activities of exporters because the selection of goods available for consumption is increased. Government see exporting activity hence it promotion as beneficial because it is a means whereby they can obtain foreign exchange and health export section gives flexibility to the management of the economy.

THE OBJECTIVE OF EXPORT PROMOTION IN INTERNATIONAL MARKETING
The objectives of Export promotion in international marketing are stated as follows
a.    To promote the development and diversification of Nigeria export trade
b.    Assist in promoting the development of export to related industries in Nigeria.
c.    To super-head the creation of appropriate export incentive and
d.    To actively articulate and promote the implementation of export policies and programs of the Nigeria government
e.    To coordinate and monitor export promotion activities in Nigeria.
f.    To collect and disseminate local manufactures and disseminate information on product available for export
g.    Provide technical assistance to local exporters on such area as exporters on such area as export procedure, documentation, transportation financing, marketing techniques, quality control, export packing, pricing publicity and other similar activities.
h.    Maintain adequate and effective representation in other countries
i.    Provide directly or jointly with trading institution, training for its staff and assist with manpower development of the export community in Nigeria.
j.    Organize and plan the participation of Nigeria in international trade fairs and exhibition in other countries.
k.    Administer grants and other benefits related to export promotion and development.
l.    Under take studies of the current economic conditions with special attention to the export sector with the aim of advising government on export promotion and development.
m.    Establish specific trade promotion facilities in Nigeria and other countries, including the establishment of permanent showrooms at important commercial centers in other countries.
n.    Cooperate with other institution on matters export financing, export incentives and specialize services to exports.
o.    Pursue the simplification and streamlining of export procedures and documentation and continuous basis.
p.    Engaged in export promotion services.

THE NEED OF NIGERIA EXPORT PROMOTION COUNCIL
During the 60’s first decade of the country’s independence the foreign trade of the country witnessed persistent balance of payment problems due to the out back of civil war. The advent of crude oil in the second half of that decade brought significant charge institution. The fist decade of Nigeria independence also witness export of primary commodities mainly from agriculture such as cocoa, palm products, cotton etc. such product accounted for over 90% export values. By 1970 – 1978 foreign trade change to the export of mineral product 95 percent of which was crude oil. This accounted for 90 percent of the total merchandize export value. The rise in volume and value of crude oil brought about a balance of trade surplus and fell in the contribution of traditional commodities in foreign exchange earning, every attempt to salvage the situation through series of re-organization of the marketing board system, increased government subsidies to the sub-sector failed to yield result. Importation become the main thing and Enugu become a mono-cultural export structure and paying lip service to the development of her other export potentials.
Following the oil market fluctuation of the eighties realized revenue fell short of projected target and many projects and programmed earmarked for implementation in the national development plans were either scaled down or completely phased out. It was then that the danger of the economy dependence on a single volatile product was brought home to policy market. Not only was the economy dependent on oil revenue, the entire production machinery of the economy was in extricable field to the external sector of the supply of raw materials and essential spares. This clearly revealed the weaknesses of the industrialization strategy of import substitution which the country had earlier adopted. The quantum of foreign exchange needed to service the various sectors of the economy was gradually grinding to  a half. The manufacturing sector was particularly affected, most factories could not save the required foreign exchange to finance the importation of raw materials installed capacity. This lead to massive retrenchment problem in the country and increased the crime rate in the country.
To reverse, this trend, government had to EXPORT MARKETING PROMOTION STRATEGY PROGRMAMME. The ultimate objective of export promotion is to diversify over revenue base through planned export development in order to ensure a steady and increased inflow of foreign exchange through exportation. Though the oil sector will still remain dominant in the national economy. Policies should be consciously neared towards an aggressive export promotion free in order to reduce the dominance of the oil sector.

THE STRUCTURE OF EXPORTABLE NON-OIL PRODUCTS
Enugu non-oil exportable produce since independence has been dominated by agricultural primary products. According to Awoga (1990:1) this was the case because the main interest of the colonial masters was and still is in the exportation of products needed to services the home industry. Ogwonmola (1990:1) agree with this when he said that Enugu economy up till today is dependent on primary products both as foreign exchange earners and as contributor to the cross domestic product of country.
Many third world countries including Nigeria have since realized that it is unrealistic to rely on agricultural primary products due to poor harvest and unstable world market prices for such goods. This principally why government interest seem to have change of recent for according to (1990:2) the government is placing a lot of emphasis on value added report as part of measures to effectively launch Nigeria into the league of exporting nations of the world.
This goes to explain government encouragement in the exportation of value added fully manufactured and non-conventional product from Enugu. Borrowing a leaf from the experience of their countries, Agostom (1985) reports that while in 1962. the Republic of Korea export constitute 73% primary products and 27% manufactured good by 1981 the trend change resulting in manufactured accounting for over 90% of exp[ort and 10% primary product.
The situation in sirilanka is the same. According to Navaratnargih (1984) export of non traditional product increased by 38% between 1978 and 1982. this is said to have expanded tremendously over the year thereby becoming the country strongest export sector. In the Philippines it is reported the about 90% total export earning come from the traditional primary produce such as logs timber, sugar and copper. By 1980 the non-traditional products have accounted for over 50% of total export earning. This was made possible because priority was given to the processing of these primary products, which where previously exporters in the raw form. In Enugu export policy on raw primary agricultural products has been tickled to some extent on home self sufficiency. For instance Decree 1 No. 11 of 1989 banned the exportation of certain categories of  goods mostly gains and tubers that were found to be in short supply in the country. Osuji and Chukwuanu (1989:4) agree with this policy when they said that any meaningful export promotion drive should first ascertain that the domestic and is appreciable satisfied before marketable surplus could be exported. Where this condition is not fulfilled consumers and factory needs will not be met. They went on to say that where the purchasing power of the local currency is weak relative to the currencies of neighboring countries, there would be that dangerous tendency for good smuggling out of the country to be on the increase.
Many schools of though do not accept this nation of home self-sufficiency before embarking on export. The World Bank report on non-oil export prospects in Enugu published in 1982 warned that “the argument in favor of satisfying domestic demand before exporting is not a valid one.
While the argument rages or, it must be admitted that the contribution of semi-processed and fully manufactured products is very negligible. It is with the aim to encourage the exportation of this category of goods that virtually all government incentives are granted to exporters of manufactured and semi-processed goods.
Be that as it may, the exportable non-oil products for Enugu non-include primary agricultural and mineral products such as cocoa, palm product, cotton, ginger, cashew nuts, tin, columbine, precious and semi-precious stories. Non-conventional products such as fruits, flowers, vegetable, cow horns and root and charcoal are also being exported. Semi-processd goods such as cocoa butter and liquor, processed rubber, cashew, crenels, tin, ingot, cotton seed oil and cotton yam are increasing both in value and volume especially over the past five years.
Manufacturers such as toiletries, cosmetic, confectionaries beverage, spirits, soaps and detergents, paints etc are gradually appearing on the export list especially to Africa countries.  All these developments coupled with the general awareness of the need by exporters of value added goods leaves one with hope that the structure of our exportable goods will continue to slightly forward processed and full manufactured goods in future.

THE ESTABLISHMENT OF NIGERIA EXPORT PROMOTION COUNCIL
The Nigeria Export promotion council (NEPC) was established through the promulgation of the Nigeria export promotion council Decree No.26 of 24 June 1976 and formally inaugurated in March 1977. The decree was amended by Decree No. 72 of 1979 which introduced some slight changes in the membership of the governing council and made form provision of the establishment of the secretariat of the council. This was further amended by the Nigeria Export promotion council re-organization Decree No. 41 of 16th November of 1988.
The promulgation of Nigeria export promotion council (NEPC) Decree in 1976 come within the period of oil boom when little though was given by policy makers in the country of the need to invest additionally resources in the promotion of non-oil export. The Decree therefore provided for advisory body expected to put forward suggestions and recommendations to government on export matters.
Although the council was supposed to have started actual operation in 1977 within the then ministry of trade, it had no budget of its own no staff. It was not until late 1978 that the first budgetary provision was made for the council with the assistance of the ministry, the council was able to acquire a secretariat and a handful of staff. In view of the interest which to then military government took in export promotion matters. It was possible for the initial series of suggestion put by NEPC in its comprehensive study on export potential to be considered. The suggestion led to the adoption of a package of incentives as contained in council of ministers, conclusions EC (79) 30th meeting of 1st August 1979
While civilian administration of 1979 – 1983 concentrated on the management of imports, prohibition and import substitution industrialization policy measures NEPA was busy carrying out studies on the supply sense for exportable products and market for non-oil export from Nigeria. This was to enable the council in better position to advice government by the future export policy measures. These efforts definitely paid off very well with events that occurred in the non-oil export sub-sector since 1986.

 

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A CRITICAL APPRAISAL OF THE NIGERIAN EXPORT PROMOTION COUNCIL STRATEGIES IN THE EXPORT OF NIGERIA GOODS”

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