A CRITICAL APPRAISAL OF THE NIGERIAN EXPORT PROMOTION COUNCIL STRATEGIES IN THE EXPORT OF NIGERIA GOODS

CHAPTER ONE

1.1       BACKGROUND TO THE STUDY

            There is a saying that “No man is an Island” This means that no human being can live and survive by himself or herself without depending on his/her fellow human being. In essence to survive in the world required adherent to the principle of give and take. This same notion led to the believe that no nation can exist on its own and by itself without it having to interact with other nations in the world.

            No nation can adequately and effectively provide all its needs. This it has to seek for the satisfaction of some of its need beyond its shares reasons for this are sometimes explained by natural endowment of resources.

            In Nigeria, since to early 80’s there has been consistent effort by the government to stem the tide of the country being as import oriented, to do away with the import substitution policy and embrace export expansion and diversification. This quantum effort which the Nigeria government has interested in the promotion of Nigeria exports an endeavor which constitution an implicit objectives of the structural adjustment program (SAP) is evident in such measure as to dissolution of the commodity Board, established and re-organization of the Nigeria export. Export promotion council (NEPC) the approval of the long list of generous export promotion incentives as contained in the 1986 budget and in decree No.18 Export incentives and miscellaneous provision decree and the deregulation of the exchange rate of the naira.

            Anolim and Igeh (1994: 15 – 21). In some quarters it has been argued that Nigeria should not get herself involved too much in exporting as it is trying to considering the fact that the domestic market still remains unsatisfied and that Nigeria would not be able to complete in international market.

1.2       BRIEF HISTORY OF THE COMPANY UNDER STUDY

            The Nigeria export promotion council (NEPC) was established in 1976 by decree 26 under the mutal/Obasanjo regime. The decree established the NEPC as a semi-autonomous agency under the ministry of trade and tourism N.E.P.C. is charged with the responsibility of promoting non-oil export in Nigeria. Having operated for about twelve years, it was obvious that NEPC was not achieved its set objectives.

            It was for this reason that in 1988 under the general Ibrahim Gbadamosi Babangide. To NEPC was revisited and re-organized. The enabling decree No 41 of 1988 thus reported the earlier decree 26 of 1976, which established the council. The new NEPC was hosted with a lot of authority and responsibilities.

            Although it has recorded some success but suffice to say that it saddled with a lot of problems just as it is yet to record excellent when compared with its set objectives.

            This is the crux of the matter and forms to basis for the research work. Correctly NEPC has various offices covering all the Geo-political Zones of the federation. South-east zone which the study is being carried out. A

1. Enugu - which covers Benue, Abia, Enugu and Delta state with the Coko and Warri port as business centers.
2. Port Harcourt – Covering Rivers, Imo, Abia and Ebony state with the port Harcourt port as the nerve center of activities
3. Calabar – which covers Cross River and Akwibom states with calabar port as the center of activities?

1.3       STATEMENT OF THE PROBLEM

            Since the mid eighties when the wide oil glut started, Nigeria government has seen the need to diversify rather than maintaining its mono structured economy with petroleum oil as it major source of revenue.

            This obviously implies that Nigeria has paid less attention to the promotion and export of agricultural products such as Groundnuts, Coca, Palm product rubber as well as solid minerals consequent upon to the above development. The Nigeria export promotion council was established in 1976 and charged with the responsibility to develop marketing strategies that will lead to the recovery of the economy from its present doldrums. Again in 1988 the Nigeria export promotion council was re-organized with a view of directing the council increase productivity and more positives results.

            But up till now, the proceeds from these non-oil products have not improved the specific problems to addressed include the following.

            To what extent have the bureaucratic bottleneck in export business discouraged potential exporters?

            Could lack of adequate export incentives be a cog in the wheel of export business?

            Is the fluctuation Naira dollar exchange value affecting the level and value of export business

            Could the non-availability of trade data or export business information for targeted countries be responsible for the non-chalant attitude towards export business?

            These are some of the questions on which this research will be based on.

1.4       OBJECTIVES OF THE STUDY

            This study objectively aims at the following

1. To evaluate the management strategy adopted by the NEPC in promoting Nigeria product abroad
2. To ascertain the not cause of low percentage in the foreign earning from agricultural and non-oil export
3. To evaluate problems facing or militating against the councils effort in achieving its set goals and objectives
4. To proffer solution towards rellamping the economy through an improved export promotion strategies.

1.5       HYPOTHESIS FORMULATION

            The following hypothesis was tested in the study.

Ho₁:     Export promotion council has not been able to promote non-oil export in Enugu state.

H1:      Export promotion council has been promoting non-oil export in Enugu state

Ho_2:       Export promotion re-organization has not made it more efficient and effective in promoting non-oil export.

H₁₂:      Export promotion re-organization in Nigeria has made it more efficient and effective in promoting non-oil export.

Ho₃:     Export promotion has a positive effect on government ownership and it also contributes to its efficiency.

H1_3:       Export promotion has no positive effect on government ownership and it does not contribute to its efficiency.

1.6       SIGNIFICANT OF THE STUDY

            Considering the attention which the federal government of Nigeria is paying to non-oil export hence the need to critically appraise the strategies adopted by the NEPC and other government agencies involve one way or the other in export activities.

            It will be of immense benefit to the organized private sector involved in export related activities, export agencies and export brokers as well as manufacturing exporters. It will help may potential exporters to have a good knowledge of export business before they can embark on it, while the already established ones can grow and expand the business. They are a lot of opportunities in export business but because of ignorance men export have not been able to seize these opportunities to their advantages; to such people this work will be of immense benefit to them. In the same vein, this research work will be of benefit to students, industrialist, bankers and other in export business.

1.7       SCOPE OF THE STUDY

            The scope of my study is limited by its size, organizationally levels and its coverage. This study concentrated on Enugu promotion council. The research work was limited to a aforementioned areas, though if the research was able to identify with any other area, which is not included it should be accepted.

1.8       DEFINITION OF TERMS

1.      ADVERTISING: This means sending message through the mass media for example, the radio, the magazine etc.

2. EXPORT PROMOTION: This means public measures which actually or potentially enhance exporting activity at the company, industry or national level
3. ECONOMIC POLICY: This is an economic plan of action implemented or adopted by the government of a state to regulate its economy.
4. FINANCE: This project work is obviously limited to inadequate or in sufficient opinion sampling in fact finding from a sizeable number of consumers. Since there are other areas outside Enugu. The research could extend to such area if not for poor finance.
5. POOR RESPONSES: The management indisposition to fully respond to the questions during the personal interview due to pressure of work and suspicious about the motive behind the research was a limiting factor to NEPC. Each person would consider himself incompetent to dish out information even when he appeared to be the most competent to do so.

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