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Critical Appraisal Of The Nigerian Export Promotion Council Strategies In The Export Of Nigeria Goods

(A study of NEPC)

5 Chapters
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78 Pages
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9,733 Words
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The Nigerian Export Promotion Council (NEPC) plays a crucial role in advancing Nigeria’s economic interests through the promotion of exports. The effectiveness of NEPC’s strategies in facilitating the export of Nigerian goods is a subject of careful evaluation. The council has implemented diverse initiatives, such as market research, trade information dissemination, and capacity building, to enhance the competitiveness of Nigerian products in the global market. One notable strategy is the emphasis on product diversification, aligning with the demand patterns in target markets. Additionally, NEPC has been proactive in fostering partnerships with international trade organizations and providing financial incentives to exporters. However, challenges persist, including infrastructural limitations and bureaucratic bottlenecks. A more robust approach to addressing these challenges, coupled with a continual refinement of export promotion strategies based on dynamic market trends, is imperative for sustaining and expanding Nigeria’s export footprint.

ABSTRACT

This research did a critical Appraisal of the Nigeria Export promotion council strategies in the Export of Nigeria goods.
In the 1960s, non oil products such as palm produce crera, cotton, groundnut, rubber etc were the major sources of our revenue. These give up about 80% of Nigeria total revenue worried about the trend the federal government in 1988 established the Nigeria Export Promotion Council and charged it with the task of reversion the trend. Sad enough there is little or no improvement in the effort. This situation thus promoted the researcher to critically appraise the strategies of NEPC in the export of Nigeria goods.
The study attempted to examine the managerial input of NEPC and to critically appraise their promotion strategies and practices geared towards the export of Nigeria goods. This prompted the appraisal in the resources, the fundamental activities of Nigeria export promotion council. This was necessary because the councils success is determine by the level of foreign earning from the non-oil proceeds.
The study reviewed NEPC achievements and failures since inception in 1988 with a view to areas that lacked proper attention so that ultimately, Nigeria can once again rely on proceeds from the non-oil sector of her economy.
A good number of recommendations were made as a result of this study. This great goal of increased foreign revenue from non-oil proceeds as a result of increase efficiency would have been achieved as a result of recommendation proffered in this study.

TABLE OF CONTENT

Title Page
Approval Page
Dedication
Acknowledgement
Abstract
Table Of Content

Chapter One
1.0 Introduction/Background Of The Study

1.1 Brief History Of The Company Under Study
1.2 Statement Of The Problem
1.3 Objective Of The Study
1.4 Hypothesis Formulation
1.5 Significance Of The Study
1.6 Scope Of The Study
1.7 Definition Of Terms

Chapter Two
2.1 Overview Of Export

2.2 Meaning Of Export Promotion
2.3 The Objective Of Export Promotion In International Marketing.
2.4 The Need Of Nigeria Export Promotion Council
2.5 The Structure Of Exportable Non-Oil Products
2.6 The Establishment Of Nigeria Export Promotion Council

Chapter Three
3.0 Research Design And Methodology

3.1 Sources Of Data
3.2 Population Of Study
3.3 Determination Of Sample Size
3.4 Sampling Technique
3.5 Research Instrument Used
3.6 Method Of Questionnaire Administration
3.7 Test Statistics Used.

Chapter Four
4.0 Data Presentation And Analysis And Interpretation

4.1 Presentation And Interpretation Of Data
4.2 Test Of Hypothesis

Chapter Five
5.0 Summary Of Findings, Recommendation And Conclusion

5.1 Summary Of Findings
5.2 Recommendations
5.3 Conclusion.
Bibliography

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
a. Enugu – which covers Benue, Abia, Enugu and Delta state with the Coko and Warri port as business centers.
b. Port Harcourt – Covering Rivers, Imo, Abia and Ebony state with the port Harcourt port as the nerve center of activities
c. 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
Ho2: 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.
H13: 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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Critical Appraisal Of The Nigerian Export Promotion Council Strategies In The Export Of Nigeria Goods:

Critical appraisal of the Nigerian Export Promotion Council (NEPC) strategies in the export of Nigerian goods is essential for evaluating the effectiveness of their efforts and identifying areas for improvement. Export promotion is vital for economic growth and sustainability, as it can help diversify the economy and generate foreign exchange. Below are some key aspects to consider in such an appraisal:

  1. Market Research and Analysis:
    • Strengths: NEPC should be commended for conducting market research to identify potential export markets for Nigerian goods.
    • Weaknesses: The accuracy and timeliness of the data used for market analysis should be critically assessed. Sometimes, outdated or inaccurate information can lead to poor export decisions.
  2. Export Diversification:
    • Strengths: Encouraging diversification of export products is a positive strategy. NEPC has made efforts to promote a variety of products beyond oil.
    • Weaknesses: The extent of diversification and the success rate of new export products should be evaluated. There may be challenges in scaling up non-oil exports.
  3. Export Promotion Programs:
    • Strengths: NEPC has implemented several programs to support exporters, including training, funding, and market access initiatives.
    • Weaknesses: The accessibility and effectiveness of these programs should be assessed. Are they reaching the intended beneficiaries? Are they producing tangible results?
  4. Quality Standards and Certification:
    • Strengths: NEPC has promoted adherence to quality standards, which is crucial for international competitiveness.
    • Weaknesses: The consistency of quality control and certification processes across different products and regions should be scrutinized. Inconsistent quality can harm Nigeria’s reputation as an exporter.
  5. Trade Agreements and Negotiations:
    • Strengths: NEPC may have participated in trade negotiations and agreements to facilitate exports.
    • Weaknesses: The effectiveness of these negotiations in terms of gaining favorable trade terms should be examined. Are these agreements benefiting Nigerian exporters?
  6. Infrastructure and Logistics:
    • Weaknesses: Nigeria faces challenges in terms of transportation, logistics, and infrastructure. These issues can significantly affect the competitiveness of Nigerian exports.
    • Recommendation: NEPC should work closely with relevant government agencies to address these infrastructure challenges.
  7. Export Financing:
    • Weaknesses: Access to finance remains a significant hurdle for many Nigerian exporters. NEPC should consider expanding access to export financing options.
    • Recommendation: Encourage partnerships with financial institutions to provide affordable credit to exporters.
  8. Market Access Barriers:
    • Weaknesses: Identify and address barriers that hinder Nigerian goods from entering foreign markets, such as tariffs, non-tariff barriers, and trade restrictions.
    • Recommendation: Engage in diplomatic efforts to reduce or eliminate these barriers.
  9. Monitoring and Evaluation:
    • Weaknesses: Regular and rigorous monitoring and evaluation of NEPC’s strategies are essential to measure their impact.
    • Recommendation: Implement a comprehensive evaluation system to assess the success of various initiatives and adjust strategies accordingly.
  10. Stakeholder Engagement:
    • Strengths: NEPC should involve key stakeholders such as exporters, industry associations, and government agencies.
    • Weaknesses: Ensure that the voices and concerns of stakeholders are adequately considered in policymaking and strategy development.

In conclusion, the NEPC plays a crucial role in promoting Nigerian exports, but a critical appraisal of its strategies is necessary to ensure their effectiveness. Addressing weaknesses and building on strengths can lead to more successful and sustainable export promotion efforts. Additionally, transparency and accountability in the implementation of export promotion strategies are vital for achieving long-term economic growth and development.