A CRITICAL APPRAISAL OF THE STRATEGIES OF EXPORTATION OF MADE IN NIGERIA GOODS
(A CASE STUDY OF NIGERIAN EXPORT PROMOTION COUNCIL)
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 commendment 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.
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.
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?
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.
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.
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:
The study comprises South East Zone of NEPC such as:
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.