A CRITICAL APPRAISAL OF THE STRATEGIES OF EXPORTATION OF MADE IN NIGERIA GOODS.
CHAPTER ONE
1.1 INTRODUCTION
HarnessingNigerianon-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 Jeopardise due to federal government inability to realize its revenue projection from crude oil exports. The emergency of oil and the national economy since the early 1990’s making the sector the major contributor to government revenue as well as foreign exchanging caring led to the neglect of the other sector of the economy and create serious structural imbalance in the economy. From 58% in 1970 oil contribute to total export earning increase to 9890 in 1982 dropping slightly to 90% in 2000. Inspite numerous government effort, to promote non-oil export the sector remain depressed, accounting for between 3-5% of budgeted foreign exchange revenue.
1.2 BACKGROUND OF THE SUBJECT MATTER
Before the discovery of oil, the main stay of Nigerian economy was agriculture such as plan oil, cocoa, cotton, groundnut, rubber, palm kernel etc. which enjoyed encouragement and support in policy implementation accounting for about 8090 ofNigeriatotal revenue.
In 1965, non-oil export accounted for as much as 70% of Nigerian 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 these product increased total export earning from 58% to 98% which is the peak of oil boom as crude oil sold at 40 dollars barrel and when the world oil glut, price of crude oil drop slightly to 90%. It is against the background thatNigerianeed to re-appraise her strategies in the exportation of non-oil export.
Export promotion management was adopted early sixties for international trade centres UNITED/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 looking debts servicing, purchase of basic input and responsible of promoting non-oil export inNigeria. It is against these back drop that the council was establish by decree 26 of 1976 under Murtala/ Obasanjo regime later in 1988 under Ibrahim Babangida, NEPC was revisited and organised under decree 41 of 1988.
Although, it has some success but suffice to say that it is saddled with problems as yet to record. Excellent compared to its set objectives.
1.3 PROBLEM ASSOCIATED WITH THE SUBJECT MATTER
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) in promoting Nigerian products abroad
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.
1.4 THE PROBLEM THE STUDY WILL BE CONCERNED WITH
Since the mid eighties when the world oil glut started,Nigeriagovernment has seen the need to diversity her economy rather than maintain its present monostructured economy with petroleum oil its major sources 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 the 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 log 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 Nigerian export promotion council (NEPC) programmes faces or militating danger?
1.5 IMPORTANCE OF STUDYING AREA
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 facts, the federal government have tremendously given attention to non-oil export(s).
Also it will be or immense benefits to the organised private sector and public sector and public sector to be involved in export business. It will help many small scale exporters to succeed in export business, 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 scarce many small scale exporters away but few immensely contend these risk.
1.6 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 where by one imposed for one or two reasons for revenue purpose and protecting of home industries.
- DUMPING
This is where the selling bellow cost in the export market.
- DRAWBACK
The repayment of tariff duties on goods and raw material are subsequently used for export.
6. TERMS OF TRADE
The ration of the price of imports to the price of export arte not the same.
7. VALUED ADDED TAX (VAT)
This was introduced inBritain, 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 exporters will bear the tax.
REFERENCES
Mbachina C. M.(1986) TowardNigerian Effective Export Drive Seminar paper
Ogwo E. Ogwo (1989) Strategic option in Nigeria Export Marketing
Marketing Journal march Volume 4,pp.31-33
Itegbe B.N (1989) The potentials for Non-export inNigeria Seminar Paper
Kotler Philip (2000) Marketing Management 10th edition New Delli; Prentice Hall.
