A CRITICAL
APPRAISAL OF THE STRATEGIES OF EXPORTATION OF MADE IN NIGERIA GOODS
(A CASE STUDY OF NIGERIAN EXPORT PROMOTION COUNCIL)
ABSTRACT
A critical appraisal of
the strategies of exportation of made in Nigerian goods is a topic chosen from
marketing field.
The research was conducted mainly to examine the strategies
adopted by NEPC in exportation of goods made in Nigeria. For effective research on this topic, both
primary and secondary data were used to elicit information from sample studied,
the primary source of data were response from the personal interview, while
secondary source from periodical, journals and newspapers.
Three hundred and fifty person were interviewed as the
sample of exporters with NEPC.
The data analysis was based on oral interview and the major
findings are as follows:
Ø
The commandment of the strategies adopted by Nigeria export
promotion council.
Ø
The positive responses given by respondent in the quest of
the research.
Ø
The strengthening and
upgrading the status of NEPC.
Ø
The reduction of institutional bottleneck in export.
Ø
The establishment of export processing zone.
Ø
The abolition of export taxes and provision of export incentives.
Ø
Lastly, the problems and prospect of Nigerian export
promotion council (NEPC).
The project
has four chapters; chapter one contains introduction, background of the study,
statement of problem, and objectives of the study.
Chapter two
has literature review, here some related literatures were reviewed with sub
topic as export development activities, export financing and incentives,
Encouraging Local export production, finding export market, human resource
training and development activities and importance of export in Economic growth
and development .
Chapter three
deal with research methodology, data analysis and presentation were some
questions was attended to.
Finally,
chapter four deals with the findings summary, conclusion, recommendation and
references.
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The Nigerian Export
Promotion Council (NEPC) was established through Nigeria export promotion Decree NO
26 of 1976, and was formally inaugurated in March, 1977. This Decree was amended by Decree No 72 of
1979 which introduce some slight changes in the membership of the governing
council and formal provision made for the establishment of the secretariat of
the council. Nigerian export promotion
Act CAP 306 and Decree No 41 of 1988 amended which resulted in the redefining
of its functional responsibilities, thus strengthening it in properly
spearheading and sustaining a dynamic export development programme and
implementing the various incentives contained in the Export (incentive and
miscellaneous provision) Decree No. 18 of 1986.
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 support in
policy implementation accounting for about 80% of Nigerian Total revenue.
In 1965,
non-oil export accounted for as much as 76% 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 products.
However, the
discovery of crude-oil since mid seventies increased total export earning from
58% to 98% which is the peak of “oil boom” as crude oil is sold at 40 dollar
per barrel and which the worldwide oil glut, price of crude oil drops slightly
to 90%. It is against this background
that Nigeria
need to re-appraise her strategies in the exportation of non-oil exports.
Export
promotion management was adopted early sixties by international trade centres
UNCTAD/GAT as strategies for effective enhancement and development of
international marketing of export products in developing economic in world
trade.
Export
promotion is designed also to assist in boosting debt servicing, purchase of
basic input and responsible for promoting non-oil export in Nigeria. It is against these backdrop that the council
was established.
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.
STATEMENT OF PROBLEM
Is there bottleneck in
NEPC strategies in export business?
Is the lack of adequate
export incentive a log in wheel of export business?
How NEPC programmes faces
militating danger?
How the economy faces
degradement?
OBJECTIVES OF THE STUDY
This study objectively aimed at the following:
1.
To ascertain NEPC strategies of promoting Nigerian products
abroad.
2.
To ascertain low percentage in foreign earning from non-oil
products.
3.
To ascertain problems dancing NEPC in achieving its goals and
objectives.
4.
To proper solutions towards revamping the economy by improved
export promotion business.
PURPOSE OF THE STUDY
The purpose of the study is to find NEPC strategies towards
the promotion of Nigeria
products abroad.
The harnessing of Nigerian non-oil export by providing
export incentive and making it the mainstream of our total exchange earning.
However, the dwindling percentage earning from non-oil
product, the worldwide oil glut and the collapse of international oil prices
with necessity to diversify this mono-cultural economy.
Therefore, NEPC should re-appraise to areas of failure with
a view to revamping it and making it live up to expectation and success.
SIGNIFICANE OF THE STUDY
The importance if properly managed would lead to economic
progress that is a means of facilitating employment and enhancing the standard
of living of its citizenry; considering this fact, the federal government have
tremendously given attention to non-oil export(s).
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 business as apart from surmounting the problems 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 flow immensely contend this
risks.
SCOPE
OF THE STUDY
This critically evaluates trade strategy which encourages
production for international marketing, and in which there is an embedded bias.
It considers NEPC techniques in the light of increasing the
need for Nigeria
to diversity her external source of revenue and also take cognizance of the
fact that the council operate within the limited sectorial allocation of fund
to the council.
Initially, the study was to cover NEPC activities
Nationwide, but constraint includes:
1.
Time
2.
Finance
The
study comprises South East Zone of NEPC such as:
a.
Enugu
b.
Port-Harcourt
c.
Calabar
METHOD OF STUDY/LIMITATION OF THE STUDY
During the time of this research work, the researcher
employed some techniques which are helpful – to him in getting information.
The necessary information about the exportation of made in
Nigerian goods was through oral interview and desk research.
The respondent number during the oral interview was high
because exportation of goods such as petroleum product is a main stay that have
revamp the economy.
The information received from desk research in Enugu was helpful to the
researcher for analyzing the important role played by exportation of goods,
mainly agricultural product in the early seventies and mid eighties before
petroleum took over in the development of our economy.
This two procedures carried out help the researcher collect
enough data which enable him solve the problem at hand.