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CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND TO THE STUDY

A major challenge in to the Nigerian economy is the development of successful domestic enterprises that provide its people with needed products and thus contributes significantly in economic development of the country. Nigeria has a geographical importance in Africa through the potential of growth and development, the abundant and everlasting natural resource, diversified culture and trade unity with other African countries, American, European, and Asian countries, that gives her an edge to float other countries’ market with its products, but charity they say begins at home; therefore, domestic products must valued and patronised in domestic market.

It has been observed that Nigerians have a negative attitude towards made in Nigeria products. The government in its efforts toward patronizing Nigerian made products made Central Bank of Nigeria (CBN) last year banned commercial banks from issuing dollar for the importation of selected products were to develop the local manufacturing sector, increase patronage of homemade goods and reduce pressure on the naira. As the pressure on the naira continued to mount over the country’s excessive import bills and low forex receipts from exports, the federal government intensified efforts to encourage Nigerians to buy locally made goods. Individuals, organisations and politicians including Senator Ben Murray Bruce and Senator Enyinnaya Abaribe, stepped up the campaign on social media and exhibitions.

Government through monetary and fiscal policies tries to dissuade consumption of foreign products in Nigeria. These efforts make foreign goods more expensive than domestic ones. It is also on the note that, domestic products now have an improvement on the quality of goods that meets consumers’ needs in the country. The drive was given a boast with the influxes of foreign direct investments in the core production sector of the Nigerian economy. With these developments, one would be thinking that the consumers’ desire for foreign goods should be on the decrease. However, the trend seems remains on change. For instance, the consumption of foreign rice and textile products still remain high in Nigerian markets, despite the improvement in both quantities and qualities of domestic rice and textile products.

In a bid to encourage patronisation of Nigerian products, some of the products being produce have now increased in the standard and quality. The majority of cloth used now is produced with cotton or synthetics woven into fabric in large textile mills. Generally, consumers in Nigeria prefer foreign goods to made in Nigeria goods, the case of textile materials follow the same trend. The foreign textiles (Swiss-made, china made, Indian made, Korean made and Holland made) have dominated the Nigerian textile market. Imported textiles are of high quality and highly price. The majority of the middle and 12 upper class citizens use foreign textiles for their clothing. Nigerian made textiles is patronized by the lower class citizens only due to its lower cost and cannot afford the highly priced foreign textiles. Recently the Nigerian Government banned imports of all printed fabrics in order to protect its own ailing industry. The number of local textile factories in Nigeria fell to just 40, a quarter of the number in the mid 1980s. The government said it took the decision in order to protect the market against dumping when exported goods are sold below their normal value. This study therefore seeks to evaluate impact of foreign goods on Nigerian consumers.

1.2  STATEMENT OF THE PROBLEM