Export promotion is a management concept employed by export enterprise for effective international marketing of its products. The process starts with the research for consumer needs down to the point of consumption and satisfaction which triggers repeat purchase. It comprises of product design, product adoption and product development. All these are intended to meet the requirement of the foreign markets.
THE ROLES OF NIGERIA EXPORT PROMOTION
To promote the development and diversification of Nigerian’s export trade;
To assist in promoting the development of export related industries in Nigeria;
To spearhead the creation of appropriate export incentives;
To actively articulate and promote the implementation of export policies and programs of the Nigerian Government.
Nigeria’s export promotion has been built around the international agricultural products and export from the country. It was a statutory body established to determine the grade and price of the products. It has the monopoly over the export of the products. This means that private individuals can only sell to the board but could not engage in the exportation of these products.
The abolished Nigeria marketing board exported the agricultural products in their crude oil or primary form. They also did little to promote export promotion of these commodities. All it did was to place these products at the doorsteps of the ready made markets after purchasing it from producers. One could rightly say that it was more of a price stabilization instrument than a tool for export promotion.
The monopoly enjoyed by the commodity board constituted some degree of dis-incentive to export oriented investors investments. The system did not allow the rapid expansion of the processing industry; to allow for the exportation of value-added product and therefore higher export earning.
The boom soon made our exports of primary product, consisting of cocoa, timber, groundnut and hide and skin to plummet to less than 4% in 2004 while in 2000, it accounted for 85 percent of export revenue. Direction of export trade in the 2000 shows that 119,000 tones of cocoa, beans was exported in 2000 representing 1.3 percent of total export, 128,000 tones in 2001 to representing 1.0 percent, 138,000 in 2002 representing 1.7 percent, 206,000 tones in 2003 representing 3.0 percent and in 2004. It was 131,000 tones representing 2.1 percent of the total export. Also groundnut export did not take place in the 2000. Palm kernel witnessed an erratic movement between 2000 and 2004. 35 tones was exported in 2000, 91 tones in 2001, 28 tones in 2002 and 54 tones in 2003 and 42 tones in 2004 as a total export. However, crude petroleum had a large share of the export in the 2000 accounting for 97.2 percent of the total export from 55; 212 tones exports. An analysis of the other major commodities had shown that they contributed a negligible amount of foreign exchange to the total exports. These were achieved in the revenue and great exporting of some commodities. By 2000 and 2003, Nigeria become a bet importer of palm oil and groundnut oil respectively. The export of crude oil over shadowed of the other exported commodities and made the most significant impact on the economy.
According to Mr. Niji George (1976) formally of the Nigeria, export promotion council, in the large sixties and early seventies most of the newly industrialized nation like Hon Kong, Taiwan and Korea, had stated export promotions with the diversity action of their export base from non value added commodities like cotton, the manufacturing which add value to their primary produce. They have now been able to penetrate to America and European markets.
THE NEED FOR PROMOTION OF EXPORT
Many do question the idea of export promotion. They often wonder if export alone could make a country prosperous or as rich as other.
However, this work shows that there is more to this than the above stated reasons. Any country taking the step to promote its export or to produce for export has some or more of these latent reasons behind its decision.
These are the identified reasons for export:
i. Export is promoted to raise the foreign exchange inflow into the country. This is needed for import of capital goods which cannot be produced within the country with the existing technology.
ii. Countries export as a deliberate policy to increase either its level of employment. It would be attain full employment or reduce the level of unemployment existing in the country.
iii. Countries do export in order to earn foreign exchange to settle or meet their international commitments or pay interest on debt and the debt itself.
iv. Countries do deliberately export to influence or spread their influence on the countries. They export spread their cultural influence or economic dominance on weaker countries.
v. Export promotion is needed to provide market for goods and services that could not be absorbed by the internal markets. This might be due to improved method of production leading to expanded production which the home-markets could no longer hold.
vi. The fact that all nations are not equally endowed with the same resources makes export to come in. It allows for exchange of goods and services which it is needed.
Disclaimer: Note this academic material is intended as a guide for your academic research work. Do not copy word for word. Note: For Computer or Programming related works, some works might not contain source codes
CITE THIS WORK
(2014, 12). The Role Of Nigerian Export Promotion Council In The Export Of Nigerian Producers” From 2000-2010.. Afribary.com. Retrieved 12, 2014, from https://afribary.com/read/5280/the-role-of-nigerian-export-promotion-council-in-the-export-of-nigerian-producers-rdquo-from-2000-2010-9447
"The Role Of Nigerian Export Promotion Council In The Export Of Nigerian Producers” From 2000-2010." Afribary.com. 12 2014. 2014. 12 2014 <https://afribary.com/read/5280/the-role-of-nigerian-export-promotion-council-in-the-export-of-nigerian-producers-rdquo-from-2000-2010-9447>.
"The Role Of Nigerian Export Promotion Council In The Export Of Nigerian Producers” From 2000-2010.." Afribary.com. Afribary.com, 12 2014. Web. 12 2014. <https://afribary.com/read/5280/the-role-of-nigerian-export-promotion-council-in-the-export-of-nigerian-producers-rdquo-from-2000-2010-9447>.
"The Role Of Nigerian Export Promotion Council In The Export Of Nigerian Producers” From 2000-2010.." Afribary.com. 12, 2014. Accessed 12, 2014. https://afribary.com/read/5280/the-role-of-nigerian-export-promotion-council-in-the-export-of-nigerian-producers-rdquo-from-2000-2010-9447.
- Related Works
- The Problems And Prospects Of Debt Management In Nigerian Finance Institutions
- An Appraisal Of The Role Of Deposit Money Banks In Financing Agricultural Projects In Enugu State (a Case Study Of Selected Deposit Money Banks Enugu Metropolis)
- The Impact Of Capital Investment On The Nigeria Economy
- The Impact Of Electronic Banking In Nigerian Banking System (critical Appraisal Of Unity Bank Plc)
- Loan Syndication As An Alternative To Business Finance In Nigeria
- The Role Of Community Bank In Rural Development
- Improving Customers Services In Nigerian Commercial Banks
- An Evaluation Of Effective Financial Management In A Computerized Accounting System (a Case Study Of First Bank Of Nigeria Plc, Kaduna)
- Corporate Governance And Bank Failure In Nigeria â€“ A Dissertation Proposal
- Mortgage Banking And Contributions To Housing Development In Nigeria A Case Study Of Harvard Trust Savings And Loans Ltd