THE STRATEGIC OPTIMIZATION AND EXPORTATION OF LOCALLY MANUFACTURED PRODUCTS IN NIGERIA

ABSTRACT

The purpose of the work is to optimize exports of non oil products with  particular emphasis on exportation of locally manufactured products. In the  course of this research, problems and prospects of exportation of locally manufactured products in Nigeria were fully examined and their projected impact on the national economy highlighted.

The revelation from this research study have actually pointed to the fact that  export marketing of locally manufactured products is a sure way of  enhancing socio - economics development of the nation.

It is pertinent to say that the research study highlighted the difficulties exporters go through in selling their products abroad as well as procuring cheap funds for facilitation of their transactions

Non oil exports especially the locally manufactured products holds much promises for the future development of the country. The magic ingredient being the revenue from exports. The importance cannot be over - emphases.

TABLE OF CONTENTS

TITLE                                                                                   PAGE

Title page                                                                                i

Declaration                                                                                       ii

Dedication                                                                              iii

Acknowledgment                                                                              iv

Abstract                                                                                  v

Table of content                                                                      vi

CHAPTER ONE

1.0

Introduction

1

1.1

Background of the study

2

1.2

Statement of problem

5

1.3~

Objective of the study

6

1.4

Significance of the study

6

1.5

Research Question

7

1.6

Research Hypothesis

8

1.7

Research Methodology

8

1.8

Scope and Limitation of work

9

1.10

Operational Definition of Terms

90

CHAPTER TWO

LITERATURE REVIEW

2.0

Introduction

11

2.1

Meaning of Strategy and strategic Sector

12

2.2

Literature Review

14

2.3

Conceptual and Theoretical Framework Doctrine

of Economic Liberation

18

2.4

Export pricing and payment

22

2.5

Relevance of promotion in Export Marketing

27

2.6

Export Institutions

29

2.7

Export Overview

29

2.8

Basic Export Information

31

2.9

Export Products Policy and Planning

32

2.10

The Export Market

35

2.11

Export Incentives

37

2.12

History of Nigeria Export

40

References

        49

CHAPTER THREE

3.0     Research Methodology                                                    50

3.1     Nature of Research Method                                             50

3.2     Research Design                                                              51

CHAPTER FOUR

4.0     Data Analysis and Interpretation                                               54

4.1     Introduction                                                                    54

4.2     Data Presentation and Analysis                                        54  

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction                                                                        63

5.1 Findings                                                                              64

5.2 Recommendations                                                               69

5.3 Model                                                                                 73

5.3.1Model Parameters                                                              73

5.4 Conclusion                                                                          75

     Reference                                                                            78

     Bibliography                                                                        80

1.0 INTRODUCTION

All over the world, Nigeria inclusive, export promotion policies as an outward oriented development strategy have been areas of interests to both policy -makers and economists. Nigeria attained independence in 1960, export promotion of primary and secondary exports has been considered as a major ingredient in the long - run development programme of economy.

At independence, the Nigeria economy was essentially ma primary product exporter based on a two- pillar product, agricultural and mineral products. Between the period of 1960 and 1996, the major agricultural products contributed about 72 percent of total export value. However, since the emergence of crude oil on the economy scene, the share of agricultural products in total export value has continued to decline. It declined as far as 3%. In 1984, but increased marginally to about 6% in 1988. In fact, the two global oil price shocks of 1973/74 and 1979 virtually made the economy a mono - product exporter in which the contribution of the oil sector to total export value increased by about 37% in 1989 from 57% in 1970 to 95% in 1989 (CBN Nigeria's Principal Economic and Financial Indicators 1970 ­1990). Moreover, the oil sector has become the major source of foreign exchange earnings to the government contributing more than 90% annually. For instance, the revenue accruing to the government through the petroleum profits tax increased by about 368% in 1989 from N 5.16 billion in 1979 to about N 24.16 billion in 1989.

The Nigerian manufacturing sector, fuelled by this buoyant oil revenues and heavy  public investments grew rapidly at an average rate of about 12% per annum between 1973 and 1983, compared with a growth of Gross Domestic Product (GDP) of about 4% per annum. A detailed analysis of the manufacturing sector indicated that the share of the sector in GDP rose from 4% in 1973 to a peak of about, 12% IN 1982 (FMBP, 1990). This impressive achievement was a result of the import substitution industrialization strategy adopted during the period with its major impetus on the growth of domestic demand for industrial output.

Thus, in order to correct this distortion in the economy emanating from 1980s oil boom - burst cycles, the current policy - makers introduced the structural Adjustment Programme (SAP) in 1986 of which the export ­oriented strategy is a sector - specific policy.

The adjustment process, as a whole, is expected to effectively alter and restructure the consumption and production patterns of the economy through the restructuring of the import and export structures.

Accordingly, the industrial development is being stimulated through the export promotion policies of the government. Some of the policies that are being put in place include 100% export proceeds retention by exporters" a duty draw - back suspension scheme (increased by about 400% from N 10 million in 1990 to N 50 minion in 1991), the manu8facturing Bond Scheme and the other functions of the Nigerian Export and import Bank (NEXIM) that are directed at stimulating international trade.

1.1 BACKGROUND TO THE STUDY

Resources are abounding in Nigeria t