A CRITICAL APPRAISAL OF THE STRATEGIES OF THE EXPORTATION OF MADE IN NIGERIA GOODS IS A TOPIC CHOSEN FROM MARKETING FIELD
ABSTRACT
A critical appraisal of the strategies of exportation of made in Nigeria 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 sources from periodical journals and newspapers.
Three data analysis was based on oral interview and the major findings are as follows:
ØThe commandment of the strategies adopted by Nigeria export promotion council.
ØThe positive responses given by respondent in the question of the research.
ØThe strengthening and upgrading the states of NEPC.
ØThe reduction of institutional bottleneck in export.
TABLE OF CONTENT
Approval page
Dedication
Acknowledgement
Abstract
Table of content
1.1 Introduction
1.2 Background of the subject matter
1.3 Problem associated with the subject matter
1.4 Problem the study will be concerned with
1.5 Importance of studying the area
1.6 Definition of important term
1.7 Reference
2.1 Literature review
2.2 The origin of the subject matter
2.3 Schools of thought within the subject area
2.4 The school of thought relevant to the subject matter
2.5 Difference methods of studying the problem
2.6 Summary
2.7 Reference
3.1 Conclusion
3.2 Data presentation
3.3 Analysis of the data
3.4 Recommendation
3.5 Conclusions
3.6 References
1.1 INTRODUCTION
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.
1.2 BACKGROUND OF THE SUBJECT MATTER
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.
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)
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 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?
1.5 IMPORTANCE OF STUDYING THE 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 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.
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 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.
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