University of Nigeria CHRISTOPER OBI_99_2… · The completion of this work against my tight...

University of Nigeria Research Publications

EZUMAH, Christopher Obi

A

utho

r

PG/MBA/97/20640

Title

The Influence of Nigeria Export Promotion

Council (NEPC) on Her Export Market

Facu

lty

Business Administration

Dep

artm

ent

Marketing

Dat

e May, 1999

Sign

atur

e

APPROVAL PAGE

I HEREBY CERTIFY THAT THIS PROJECT

EZUMAH CHRISTOPHER OBI PG/MBA/g7/20640

TITLED

THE INFLUENCE OF NIGERIA EXPORT PROMOTION COUNCIL (NEPC) ON HER EXPORT MARKET

HAS BEEN SUPERVISED AND FOUND WORTHY OF ACCEPTANCE IN PART

FULFILMENT FOR THE AWARD OF MASTERS OF BUSINESS ADMINISTRATION (MBA) IN MARKETING

/ BATE ...........................

UNIVERSITY OF NIGERIA ENUGU CAMPUS

DEPARlTMENT OF MARKI3TING

THE INFLUENCE OF NIGERIA EXPORT PROMOTION COUNCIL (NEPC) ON HER EXPORT MARKET

EZUMAH CHRISTOPHER OBI REG. NO: PGlMBN97120640

THIS PROJECT WORK IS SUBMITTED IN PART FULFILMENT OF THE REQUIREMENT FOR THE

AWARD OF THE MASTERS OF BUSINESS ADMINISTRATION (MBA) IN MARKETING OF THE

ABOVE UNIVERSITY.

MAY, 1999.

DEDICATION PAGE

This piece of research work is dedicated wholly to my

critics. Without whom the spore for this work would not have

been possible.

Ezumah Chris Obi (kr.) 1999

ACWOWLEDGEMENT

God almighty must be exalted first, for making my dreams

come through.. I owe the larger part of my proceeds as a result of

this higher degree to humanity. Especially, on those that choose

academics as their bedrock of success.

Though I wish to make this page a brief one in other not to

offend all those that added to the success of this piece of work, but

too numerous to mention, I must not fail to fiont some of them too

indispensable. Dr. H.C. Ezumah, you are my role model until I

bag my highest life desire .. . a Phd in my area of study. But one

must be counted before two, three and four. Your inspirations has

fetched me this higher degree. Thanks a lot.

I must cornrne~d the efforts of my post graduate good

friends Nikita Oluade and Courage Onyenaucheya Amalime. For

these people, my post graduate, total academic and public relatiofis

life was .a good blend. It portrayed to me what g o d friendship is.

We must celebrate our successes together. Cheers!.

iii

Finally, my mention would be incomplete without reference

to Mrs. Obiageli Ochiagha, whose resolve was to see me a

successfid man against all odds. Your assistance, material and

advice was not in vain. But for Eunice your disturbance was

positive. The completion of this work against my tight schedule

was a manifestation to that.

God, thank you for accepting these good things as above

now and forever.

EZUMAH, CHRIS. OBI.

ABSTRACT

This study specifically centered on digging the obvious

influences NEPC has on her market. Her market comprise of

Nigerian Exporters who stands in-between the council and the

actual users of these non-oil goods. Some of the identified areas of

influence were basically, incentives granted to these exporters and

other information syndications.

Information were gathered through primary and secondary

sources. The analyses and testing were carried out with reliable

statistical techniques such as simple percentages, Z - test and

proportion estimation. Two sets of questionnaires were formulated

and used to get the much needed data fiom respondents.

The study reveaked that there exists influences fiom the

council on her customers/exporters. Though, such influences are

more of financial incentives and on the procedures for exporting.

To enhance the performance of the council, it was recommended

that government through the enabling Agency, should fortify her

financial assistance or subventions to enable the council perfbrm

better her required roles. Also, and most importantly, the council

was advised to open up her closed down commercial Desks abroad

as a gate way to show-case to the out side world.

On a general note, the council should educate the public on

her activities over time.

VITAE - FOR POSTERITY SAKE

The little boy was born some several years ago. He grew

not in an academic prone home but had a vision that was directed

towards that. His dream was to be a masters' Degree graduate

before he was twenty-five (25). A record he was not able to break.

Maybe, owing to unsteady academic calendar in his years. But,

three years after that target, he was already a University of Nigeria

acclaimed master Degree holder in Marketing; Business

Administration and had just six months standing in-between

himself and another Master of Science (Msc) degree in Public

Relations fiom the same University. May be, to cover up those

years of wasted efforts.

A task and huddle that was kept for his children before being

accepted as having arrived.

That little boy grew and became a man today. His name is

Ezumah Chris Obi. May God bless and protect all that added to

his achievements. . . . Amen.

EZUMAH C.O.

TABLE OF CONTENT

DEDICATION PAGE ....................................

ACKNOWLEDGEMENT ...............................

ABSTRACT ...............................................

VITAE ......................................................

TABLE OF CONTENT ..................................

CHAPTER ONE

INTRODUCTION .................................

RESEARCH BACKGROUND .................

STATEMENT OF PROBLEM ..................

............ SIGNIFICANCE OF THE STUDY

STATEMENT OF HYPOTHESIS ..............

SCOPE OF STUDY ..............................

LIMITATION OF STUDY ......................

1

. . i1

iv

vi

Vii

1

1

15

17

18

19

19

CHAPTER TWO

LITERATURE REVIEW ........................

MEANING AND NEED FOR EXPORT

..................................... PROMOTION

NON-OIL EXPORTS TN PERSPECTIVE ......

NEED FOR EXPORT PROMOTION ...........

THE ESTABLISHMENT OF (NEPC) ..........

THE STRUCTURE, OBJECTIVE AND

FIJNCI'IONS OF NEPC ............................

INFLUENCING FUNCTIONS OF (NEPC) .....

REVIEW OF RELATED LITERATURE ........

REFERENCE TO CHAPTER TWO ..............

CHAPTER THREE

3.1 RESEARCH DESING AND METHODOLOGY .. 47

3.1.1 METHODOLOGY ................................... 47

3.1.2 SOURCES OF DATA ................................. 48

3.1.3 DETERMINATION OF POPULATION SIZE .... 49

3.1.4 QUESTIONNAIRE FORMULATION AND

CIRCULATION ........................................ 56

3.1.5 SAMPLE LETTER DISTRIBUTION AND

VETTTNG ..........................................

CAHPTER FOUR

4.1 ANALYSISANDINTERPRETATIONOF

DATA .................................................. 57

4.2 TEST OF HYPOTHESIS ........................... 69

CHAPTER FIVE

5.1 SUMMARY OF FTNDINGS ........................ 79

5.2 RECOMMENDATION ................................ 82

5.3 CONCLUSION ......................................... 83

DEFINITION OF TERMS ............................ 84

BIBLIOGRAPHY ..................................... 85

QUESTIONNAIRES ................................. 87

LETTER FOR QUESTIONNAW ................ 91

CHAPTER ONE

INTRODUCTION:

1.1 RESEARCH BACKGROUND:

The Nigeria Export Promotion Council (NEPC) was established

under (NEPC) decree No 26 of 1976 as a federal government's

parastatal. The council, which was under the federal ministry of

commerce and Tourism before the split of the ministry, was

charged with the responsibility of developing and promoting

Nigerians Non-oil exports.

However, after the inauguration of the council and the introduction

of structural adjustment programme (SAP) in 1986, the government

through decree (No 41 of 1988) and its amendment decree (No 41

of 19922) re-organized and strengthened the council to enable it

cope with the demands of modern and competitive export

promotion activities.

MANDATES OF NEPC BY GOVERNMENT:

Amongst the mandates given to (NEPC) by the decree establishing

it, some of these are prominent:

i. To promote the development and diversification of export

oriented industries, in Nigeria.

ii. To identify the country's export potentials.

. . . 111.

iv .

v.

vi.

vii.

viii.

To collect and disseminate information on exportable

products and commodities in Nigeria.

To counsel Nigerian exporters on trade procedure,

documentation, export costing and pricing etc.

To spearhead the creation and diversification of export

incentives.

To under take studies and research of relevant overseas

market as well as the current economic condition with a view

to advising exporter, and government,

The establishment of specific trade promotion facilities in

Nigeria and in other countries including the establishing of

product display centres at important commercial centres of

the world.

To organize Nigeria participation in foreign trade fairs and

exhibition with a view to exposing Nigerian exportable

products abroad.

SOME INFLUENCING ACHIEVEMENTS OF THE

COUNCIL ON THE EXPORT MARKET:

Nigerian Export Promotions Council (NEPC) since inception and

until1 recently has achieved some prominence but, influencing

factors on the export markets. Though a definition of these export

market would be vital but must be done in the literature reviews of

the research work. Some of these achievements are;

i. Generation of Export Awareness:

In other to create a lasting export culture awareness,

education and enlightenment, the council has been

organizing seminars, conferences, workshops and symposia

on topical issues in the economic life being of nations of the

world. For example, in its determined effort to sustain the

achieved export awareness and culture in the export market

the council specifically, in 1997 organized zonal seminars,

workshops and training courses for exporters.

According to NEPC 1997189 Annual Report, the Council

organized in collaboration with ITC, UNCTADIWTO and

the UNDP a training workshop on export marketing of

horticultural products for would- be exporters. In each of

these organized seminars, the resultant influence on the

foreign importers were visible. The same NEPC annual

report recorded that about 88 new export firms indicated

interest in foreign business within the period i.e. 1997-1998

while 22 already known exporter, re-registered (NEPC

annual Report, 1997 PP 3-4)

ii. Another unique achievement of the council was to lay a solid

foundation for long tem product development. The council

regularly conducts supply-base studies on various exportable

products with a view to identifying there potentials and

developing some to meet international market standard and

specifications.

iii. In a bid to develop export manufacturing firm in Nigeria the

council, via it export incentive and miscellaneous provision

as contained in the decree of establishment, succeeded in

implementing these export incentives. The secondary

advantages is to militate competitive disadvantage, inherent

in the industry. ie. export manufacturing firms. Some of

these incentives are :

Duty Drawback Scheme (DDS)

Export Expansion Grant Fund (EEGF)

Ecowas Trade Liberalization Scheme

Manufactures In - Bond Scheme

Export Development Fund Scheme (EDF)

a. Dutv Drawback Scheme (DDS)

The scheme provides for the refund of duties, levies and

surcharges on imported raw material including packaging,

used for the manufacture of products for exports. The idea

basically, is to encourage exporters. At inception, to be

pesice in 1988, five companies received a total refund of

%645,009.78; in 1991, eighteen (18) companies got a

refund of W22.2OO.45 1.29, while a total of W38.076.894.85

was approved for 19 companies in 19%. Finally, in 1997,

14 companies received S111.492.258.40 as refund in the

scheme (NEPC WR P. 19). To facilitate the efficiency of the

scheme, the producing exporter is required to produce a

bank guarantor as collateral in case the inputs are not used

for export production. As production and exportation take

place on these imported raw materials, the exporter sends to

the Duty draw back committee, evidence of actual exports.

The documents are then used to reconcile the actual export

target originally declared by the company. At the end of the

year if shortfalls are established, the exporters are called

upon to pay duties for only the raw material used for such,

short falls so as to redeem the initial Bank guarantee.

b. Export Expansion Grant Fund (EEGF)

This is another influencing incentive the council has on her

exporters. The fund is to provide cash inducement for

exporters who have exported a minimum of W50, 000 (fifty

thousand naira) worth of semi produced and produced

product, to assist them increase their volume of export and

diversify export products and market coverage so, the fund

is exclusively made available only to exporters who have

repatriated their proceeds through the NEPC board sub-

committee concerned for this duty. Below is an analysis on

how this scheme is calculated.

i. W50,000 - W1OO.OOO export sdes p/a 5 %

ii. An addition of W500,OOO 4%

iii. Additional of more W1,000 000 3 %

iv. Above W 1000 00 2%

Source: central Bank Nig. Annual Report

April 1994.

c. Manufacturing - in - Bond Scheme

This serves as another influencing tool to exports by the

'council. It is an improvement on Bonded warehouse system

as previously used by the council. Under the arrangement,

the bonded store is put in the sole custody of the exporter.

The customs will exercise supervision over the bonded goods

via inventory controls. As such the import entries are

matched with export entries. The exporters are obliged to

give an account at all times for the items in bond. But, it is

worthy to note that any participating exporters must have a

minimum value-added of 15 % . Moreso, he must operate

from an approved and registered factory premises.

Most exporters, owing to the zeal to get involved in the

scheme makes serious efforts to benefit out of it by

participating actively.

d. Export Development Fund Scheme (EDFA)

This is a special fund provided by government via the

council, to assist exporting companies to cover part of their

initial expenses in the following areas of export.

Development, marketing, and promotional activities

Participation in training courses, symposia seminars and

workshops in all aspects of export promotion.

Advertising and publicity campaign in foreign markets.

Export market research and studies.

Product design and consultancy.

Cost of collecting trade information.

Backing up the development of export-oriented industries.

The fund, as provided by the decree is managed by Board of

Trustee whose secretariat is at the council head office at Abuja.

INHIBITING PROBLEMS OF (NEPC) AS AGAINST HER

ROLE IN EXPORT MARKET INFLUENCE:

Though the NEPC was given all it needed to carry out her

functions, the researcher was able to find out from record, some of

the problems associated with such a government establishment

against the influence, it was meant to achieve on her export

markets.

i. In adequate funding to promote and sustain export activities

as demanded by her job specification is a vital problem to

the council. This problem has made it impossible for the

council to optimally thy promote and assist in developing her

export market. e

. . 11 indiscriminate levies on Export commodities is another

inhibiting factor. Though this factor is not directly on the

target market. But, it has an influence link with it. As soon

as these products that are to exported are levied high tariffs,

the tendency is that foreign importers would be discouraged.

iii In 1994, government closed all her commercial Desks over-

seas. This serves as a liaison office of the council in various

nations of the world. It weakened the council's role in the

provision of up to date market advisory information to

foreign importers. It has also from record, reduced her

ability to do direct check on partner of Nigerian exporters

(Ministerial Press Briefing 1998)

iv . Inadequate credit guarantee/insurance for Export. The

provision of credit guarantee for pre-shipment financial and

credit insurance cover for post shipment financing which are

crucial to export development and sustenance are not

adequately implemented. This is despite the establishment of

the (NEXIM) as bank.

AN OVERVIEW ON NIGERIA EXPORT MARKET:

Where as export is an international business by which a Nation sells

what she has with another county, the role of (NEPC) her scope of

operation as it concerns this research is vital. Also, to understand

those exportable goods that fall within these category in Nigeria

context. But, it may be easier to list the items that are not

exportable, as such are non-oil items according to the mandate of

(NEPC) so that all other remain exportable. These are, Raw hides

and skin, Timber, wood in the rough stage, excluding furniture

component, Rail way shippers, floor and ceiling Tile, Doors

windows and Pallets, Raw palm kennel. All other product remain

exportable. (Export World Nov . '98).

Determining and assessing the export potentials of the country has

been one of the main pre-occupations of the (NEPC). This is to

meet up with the specified mandate given to it by government.

Also, from various export potentials and foreign market

opportunities survey done by (NEPC), for industrial goods, such as

aluminum, house utensils; paper products. Biscuits and

confectioneries, carpet, wire nails, Nuts and bolt, etc. It was also

established that the country, Nigeria enjoys a comparative cost

advantage. In form of being able to producing and supplying these

products, to either Africa nations including the ECOWAS and

United States (Annual Report 1998).

It was also on record that (NEPC) accounted in her export oriented

Trade mission that took place in Nov. 1981 and June 1984 to some

countries in ECOWAS including Cameroon and USA respectively

of over N50 million worth of tentative export orders within a space

of six weeks. (Export world. 1998 P 40). This had proved beyond

doubts the immense opportunities and prospects that await Nigeria

industrial exports in those countries. With the above, one should

accept that the major export market for Nigerian's exporters are all

foreign nations of the world. Especially Ecowas and European

nations (EEC)

PARTICAL CASES OF (NEPC) AND HER INFLUENCE ON

NIGERIA EXPORT MARKET:

Nigeria Export Promotion Council, since inception adopts several

ways in influencing her export market. Each of these ways has a

direct or indirect influences on her market. It is direct where the

council's activities is directed on her market in getting them

induced in form of improving their imports of non-oil products

from Nigeria. Also, it is indirect 'where the council tend to

influence either local exporters or non-users of these products to

getting them make improved but steady demand of her non-oil

products.

Two prominent ways by which the council achieves these

market development and Trade fairs.

i. market Development: The council in 1997, prepared

are;

and

up-dated the profilelmarket briefs of some potential

importing countries of Nigeria products and commodities.

Some of these countries were, Ghana, Egypt, Morocco,

. . 11. Turkey, Kenya, Niger and United Arab Emirates (NEPC

AR, 1997 P.12).

Also on market development, the council via her mother ministry

established a Border market. Specifically, the bilateral. Trade

agreement (B T A) between Nigeria and Benin Republic was

signed and ratified in 1990 and 1992 respectively, similar proposal

are still being considered between other nations along the borders

area with Nigeria (MPB, 1998) similarly, the council negotiated

and signed Bilateral Trade Agreement (B T A ) with Turkey late in

1996. MPB report had it that both countries commenced full

implementation of the agreement.

In May 1997 and March 1998, the council participated at the 27th

session of NigeriaINiger joint commission held at Maradi and a

Trade Mission to Niamey, Niger respectively. Some of the

influencing out come of the missions were;

Establishment of joint bilateral chambers of commerce

between the two countries.

Joint organization of Trade fairs by the two countries.

Joint venture in the field of Agro allied industries to be

explored. (MPB, 1998 P.32)

iii. Traded fairs:

Having found out from (NEPC) record that another

influencing ways of attracting market for export in Nigeria is

via Trade fairs. Two of such modes of fairs were identified,

viz. ; local and International. (AR, 1997 P. 12) "Participation

in overseas international trade fairs and exhibitions still

remains a veritable tool applied in export trade promotion

and world-wide" .

Though such participation, exhibitor and potential buyers,

agent and distributors come face to face to negotiate and

possibly conclude deals that would otherwise have taken

longer period and huge cost, to conclude. Practically, in

realization of the above, the council in 1997 sponsored the

participation of Nigeria company to the following fairs and

exhibitions. Below each is of these. are the resultant

advantages.

a. 4th Ghana Industry and Technology Fairs:

The fair which took place at Accra Ghana between

February 28 and March 10, 1997 created enabling

environment for industries, scientific and research

institutes and agencies responsible for the transfer of

appropriate technology and for those interested in

buying from Nigeria. At the end of the fair, a total of

(69) inquiries were received from Nigeria. Though

products of only (17) Nigeria companies were

exhibited (AR, 1998).

b. Cairo International Trade Fairs:

It was obvious in the records of NEPC (AR, 1998)

that between 19 '~ to 28th of march 1997 in Cairo

Egypt, a fair was attended to aid in her efforts to

encouraging exports of Nigeria products. Out of Nine

(9) companies that were sponsored, a total of 59

inquiries were received from foreign importers.

According the above record a total of about W300

million worth of business could result from the said

inquiries

c. 6fjth Izrnir International Trade fair, Turkey:

(NEPC) in her bid to encourage and improve the

importation of her products by foreign market;

attended a fair held in the Turkish city of fair (Izumi)

between the 25th of August and 3rd of September,

1997. At the end of the fair, (NEPC) recorded a

bright prospects for made in Nigeria products

especially, manufactured and solid minerals.

The last was the far that the council participated

between 27' Nov. and 7th Dec. 1997 in Guinea,

Africa. At the end of the fair, about W5, 000.000 and

Us $95,000 was realized. Also, orders for aluminum

doors worth W28.8m. were sealed at the fair (1998

AR).A11 these explains the extent at which the council

had worked in near recent to achieving her mandate.

During the end of first quarter of 1997, the council

recorded exports valued 949.60) billion. The break

down according to her annual report was as follows;

i. January W5.128B.

ii. February W 2.473b.

iii. March W 2.006b.

[Source NEPC AR, l998.P17]

1.2 STATEMENT OF PROBLEM:

When the (NEPC) was established in 1976 and the subsequent

inaugu;ation of the council in 1988 as a result of (SAP) - structural

Adjustment programme reform, much was expected from it. One of

such expectations was to transform the nation from a mono-product

exporting country to a multiple product exporting country in the

world. Moreso, the council was expected to create much needed

awareness on her export-products to the window of the out side

world.

Finally, the resultant effect of all the above should manifest on the

level or degree of what is exported from the council. i.e. before her

establishment and the current export figure and subsequent

acceptability of these product, abroad. That would definitely show-

case the long-awaited influence the council have had on her buyers

as defined previously.

Based on the above expectations, the research made the following

statement of problems.

The influence of (NEPC) on her export market in

ineffective.

The (NEPC) has not accounted for a positive variation in her

influence after creation.

There are no relationships between the activities of Export

promotion council and need to promote locally produced

Nigeria goods

The incentives granted by (NEPC) to exporter has no

inducement on such exporters.

1.3 SIGNIFICANCE OF THE STUDY:

The government of Nigeria since 1986 had adopted the slogan,

"Export for survival" to portray her commitment on her export

promotion in the country. Thus, the government has put in some

machineries, infrastructures and policies in place to foster export.

Most importantly at the forefront, is the Nigeria Export promotion

council (NEPC) .

This study has among other significance;

To showcase to the policy maker in the export industry, the

activities of the council since inception. And possibly, draw a

report card.

Also, the study would educate new entrants in the export business

on the influences the council has on exports in Nigeria. As such f

they would plan towards that direction.

Furthermore, the study will enable the government that established

the council to access the viability or contribution the council had

put in over the year in the export business.

Finally, the study will expose to what degree the exports of Nigeria

are accepted in foreign market. That is, the acceptability of Nigeria

products abroad.

1.4 STATEMENT OF HYPOTHESIS:

In examining the influence of the Nigeria Export Council (NEPC)

in export promotions the following hypothesis was tested.

1. H, - There are relationships between the activities of Export

promotion council and the need to promote locally produced

Nigeria goods

H, - There are no relationships between the activities of

Export promotion council and the need to promote locally

produced Nigerian goods.

2. H, - There is correlation between Export of goods and

service promotion procedures and the Nigerian Export

promotion council.

H, - There is no correlation between Export of foods and

services and the Nigerian Export Promotion Council.

3. H, The incentives granted by (NEPC) to exporters has no


H, the incentives granted by (NEPC) to exporters has no


1.5 SCOPE OF STUDY:

This study was concentrated on the activities of Nigerian Export

Promotion Council (NEPC). Though the researcher had all the

zonal offices of the council in mind, owing to significant reasons

and limitations, he was only able to make an uneven representation.

His emphasis was basically on (NEPC) offices or in Abuja, Enugu,

Kano and Port Harcourt.

Also, the questionnaire the researcher distributed was made for top

officers of the council and some selected members of the exporting

communities.

Finally, it is fair to state that the study ignored most of (NEPC)

buying customers abroad. As such, only Nigerians were involved

or considered in the research study. f

1.6 LIMITATION OF STUDY:

An exercise of this nature is usually prone to likely difficulties.

Especially, in developing nations like Nigeria. Some of the

pertinent limitations to this study included:

I . Time constraint:

To come out with a good research work, one needed a

reasonable period of time. Unfortunately, this was not so

owing to unsteady academic calendar surrounded by strike -

infected session. Most academic activities were ran behind

schedule. Any extension of time would involve the work

overlapping into another academic session.

. . 11. Finance

Secondly, the cost of this research work was not easy to

repudiate. Some of the cost centres were, transport fare, to

sources of information, feeding expenses, lodging and

various secretarial jobs. To the best of the researches ability,

those hardships were better imagined than described.

Especially, as it concerned a jobless student.

iv. Another major limitation to this study was the un- C

willingness of those in authority to give out information on

related issues. Reason being that official information were

not made for student publics. As a result of the above, such

vital information were treated as confidential. So it was not

possible to have all desired information needed.

CHAPTER TWO

2.0 LITERATURE REVIEW:

2.1 MEANING AND NEED FOR EXPORT PROMOTION:

The concept of export promotion is relatively new in most third

world nations. Though, some nations in the third world such as

India, Brazil, South Korea, Hong-Kong, Egypt and even Kenya

have long blazed the trial, which Nigeria is trying to follow. Export

promotion as it is generally recognized begins with the production

of the export products or materials and ends with the consumption

of the product outside the country. Export promotion therefore,

entails planning for the identification and exploitation of the

country's export resource the provision of infrastructural facilities

to aid the production and the marketing of the export product in the

international markets. Marketing of export products, involves the

adoption of appropriate export pricing policies, quality standard as

well as packaging and labeling methods to enhance the

competitiveness of the export product for overseas market. This e

involve, the use of the strategic marketing concepts which focuses

on consume satisfaction in each market.

Export promotion according to Root (1978:118) can be defined as

"publk policy measure which actually or potentially enhance

exporting activity at the company, industry or national level". Rolf

seringhaus & Rosson (1990:17) wrote that the role of export

promotion is the creation of awareness of exporting as a growth and

market expansion option, the reduction or removal of barriers to

exporting and the creation of promotion incentives, and various

forms of assistance to potential and actual exporters.

One may be forced to ask the question, why does individual and

countries clamour for export? Export objectives vary from country

to country. Onah (1990:87) in consideration to these, gave the

following factors as collectively or individually influencing a

businessman decision to export.

i. . . 11.

iii.

iv .

v.

vi.

vii.

. . . v111.

Inquiries from overseas Viz. from foreign importers.

The need to find new markets if demand at home is limited.

Pursuit of higher sales volume in order to secure economics

of scales in production and marketing.

Pursuit of higher profit margin.

As a means of extending the product life cycle.

To stamp out seasonal fluctuations in demand.

As a means of risk-spreading. Eg. If tax rates in the home

market becomes burdensome.

As a means of becoming on international company

Said he, "The consumer derives a welfare benefit from the activities

of exporters because the selection of goods available for

consumption is increased. Government sees exporting activity,

hence its promotion as beneficial because it is a means where by

they can obtain foreign exchange and a healthy export sector gives

flexibility to the management of the economy. "

2.2 NON - OIL EXPORTS IN PERSPECTIVE:

During the sixties which was the first decade of the country's

independence, the foreign trade of the country witnessed persistent

balance of payments problems. The merchandise trade largely

experienced during that decade, "balance of trade deficits", which

was aggravated by the outbreak of the civil war. However, the

advent of crude oil export in the second half of that decade and in

subsequent years introduced a significant change in the balance of

trade position in that the oil export, completely wiped out the

deficits arising from the non-oil sector of the economy (AR: 1997).

Before and almost throughout the first decade of Nigeria's

independence, exports of primary commodities mainly from C

agriculture, such as groundnut, cocoa, palm produce and cotton

dominated our total export trade. Within the first half of that decade

export of this category of non-oil products accounted for an average

of about 88% of the country's export trade by volume. But,

towafds the close of that decade, crude oil exports had assumed a

significant proportion of the export trade by value for it accounted

for over 40% of the total value of merchandise exports. From 1970

however, according to CBN annual Report of 1996, the pattern of

the country's foreign trade had undergone dramatic changes. This

was because, mineral exports dominated by crude oil accounted for

over 90% of total exports by value. It is interesting to note that the

value of crude oil export which stood at first about W136 million in

1965, rose to an unbelievable figure of over W 5 billion in 1974.

That is barely within a period of ten years. It rose again to $410

billion in 1985 and it has consistently been on the increase. The

impact of this momentous rise in the volume and value of crude oil

exports has been largely responsible for the build up of a sizeable

balance of trade surplus.

According to Abolaji (19:82). "The consequence of this

development was that the role of traditional commodities in foreign

exchange earnings because increasingly in significant". Attempts

were no doubt made (0 salvage the situation through series of re-

organization of the marketing Board system which involved

increased government subsidies to the agricultural sector. But

unfortunately, this did not yield the desired result as import

relaxation during the early 70s greatly stimulated the import sub-

sector of the foreign trade and virtually turned Nigeria into a nation

of importer. It should be noted that before the emergence of

petroleum. Nigeria relied heavily for the sustenance of the economy

on export of agricultural commodities. With the emergence of

petroleum export and foreign exchange windfall that followed in it,

more agricultural exports were neglected. Recent experience have

demonstrated the vulnerability of this country's economic position

in view of the heavy reliance on petroleum.

The Nigerian authorities did not come to the full awareness of this

undesirable situation in the export sub-sector of the economy until

the second half of the seventies. It was during that period that the

consequences of the neglete were weighed and appropriate decision

taken to stimulate non-oil export growth and to regard a systematic

planning of this sub-sector as a -lead factor in the nation's

economic development. The government then took a wise decision

to establish the Nigeria Export promotion council (NEPC) as the

focal institution in Nigeria to spear head and co-ordinate national

efforts towards vigorous non-oil export drive.

2.3 NEED FOR EXPORT PROMOTION:

During the 60's' which marked the first decade of the country's

independence, the foreign trade of the country witnessed persistent

balance of payment problems due to the outbreak of the civil war.

The advent of crude oil in the second half of that decade brought

Significant changes. Also this first decade witnessed the export of

primary commodities mainly from agriculture such as cocoa, palm

produce, cotton etc. Such products accounted for over 90% of

export value. By 1970-1978, foreign trade changed to the export of

mineral product. 95% of which was crude oil. This accounted for

90%of the total merchandise export value. The rise in volume and

value of crude oil brought about a balance of trade surplus and a

fall in the contribution of traditional commodities in as (cocoa,

palm oil etc) in foreign exchange earnings. Every attempts to

salvage the situation through series of re-organization of the

marketing board system, increased government subsidies to the sub

sector failed to yield result. Importation became the main thing and

Nigeria became a mono cultural export structure and paying lip

service to the development of her other export potentials.

Sequel to the oil market fluctuations in the eighties, realized

revenue fell short of projected target and many projects and

programmes earmarked for implementation in the National

development plans were either scaled down or totally phased out. It

was then that the danger of the economy dependent on a single

volatile product was brought home to policy makers.

Moreso, most factories could not save the required foreign

exchange to finance the importation of raw materials and essential

spares. Owing to that, these factories had to operate below installed

capacity. This led to massive retrenchment of staff, which further

increased the unemployment problem in the nation and increased

the crime rate in the society. To get this trend reversed,

government had to adopt EXPORT MARKETING

PROMOTION STRATEGY of development as one of the

components of structural Adjustment programme. The ultimate

objective of export promotion is to diversify our revenue base Via.

Planned export development in order to ensure a steady and

increased inflow of foreign exchange through exportation. Apart

from foreign exchange, export activities of the (NEPC) has the

following advantages;

a. To attract new private investment via. Foreign investors.

This goes a long way in alleviating the unemployment

situation in the country. f

b. Diversifying the revenue base of the economy.

c. As a necessary tool for trade expansion via export

promotion, Nigerian Business businessmen acquire the

international marketing expertise that pre-requisite for any

nation willing to acquire economic power and international

reputation.

d. The activity moreso, is a medium for marketing export

education among the senior executives of both public and

private sector organization so as to enable them acquire the

art of international marketing which calls for a much higher

discipline than domestic marketing.

In a economy like Nigeria that has long depended on a single

product for long, the need for export promotion becomes glaring.

Akpabio (1986 P. 20) in support of all that was said feels that

export promotion is not only to generate foreign exchange from

other sources and shift emphasis away from oil but, also to create

productive activities and reduce unemployment since it is an in

word looking productive venture.

Okonkwo (1987 P.lO) by his own assessment sees the need for

export promotion in Nigeria in a different perspective. According

to him, 'it was designed to counter a downturn in the Nigerian

economy said he, "the option would not have been considered if the

Nigerian economy had remained buoyant as was the case in the

past". He concluded by saying that it exposes the Nigerian

economy as that of reactors rather than that of planners.

THE ESTABLISHMENT OF NIGERIA EXPORT

PROMOTION COUNCIL:

The Nigeria Export Promotion Council (NEPC) was established

though the promulgation of the Nigeria Export Promotion Council

Decree No. 26 of 24h June 1976 and formally inaugurated in

March, 1977. This Decree was amended by Decree No. 72 of

1979, which introduced some slight changes in the membership of

the Governing Council and made formal provision for the

establishment of the secretariat of the Nigeria Export Promotion

Council Re- organization Decree No. 41 of 16th November 1988.

The promulgation of the Nigeria Export Promotion Council

(NEPC) Decree in 1976, came within the period of oil boom. When

little thought was given by policy makers in the county of the need

to invest additional resource in the promotion of non-oil export.

The Decree therefore provided for an advisory body expected to

put forward suggestions and recommendations to government on

export matters.

Although the council was supposed to have started actual operation

in 1977 within the then ministry of Trade. It had no budget of its

own and no staff. It was only until late 1978 that the first budgetary

provision was made for the council. And with the assistance of the

Ministry, the council was able to acquire a secretariat and a handful

of staff. In view of the interest, which the then military government

took in export promotion issues, it was possible for the initial series

of suggestions put up by (NEPC) in its comprehensive study on

export potentials to be considered. The suggestions led to the

adoption of a package of incentives as contained in council of

ministers, conclusion 30TH MEETING OF August 1, 1979.

31

2.5 THE STRUCTURE, OBJECTIVE AND FUNCTIONS

OF NEPC

STRUCTURE

The council is a parastatal under the supervision of the

Federal Ministry of Commerce and Tourism before the recent split

by federal government. It has a board of Directors whose

membership is drawn from both the public and private sector of the

economy. The chairman of the board is appointed from the private

sector - a slight departure from the past where the minister of the

ministry was the statutory chairman. The chief executive of the

NEPC is known as the Executive director. Who oversees the day

to day administration of the council.

The council has its headquarter at Abuja and maintain five

zonal office5 in Nigeria located at Kano, Lagos, Port-Harcourt, Jos

and Enugu. In addition, the council also maintained overseas

commercial Desks at Jeddah, New York (USA). London (UK),

Warsaw (Psland); and Nigerian Trade centers at Abijan (cote

D'Ivore); Brussels (Belgium); and Taipei (Taiwan).

32

The head quarters in Abuja is divided into four departments.

That is:

- Ofice of the executive Director

- Personnel management finance and supplies

- Trade information and incentives

- Product and market development

The structure of the council was hrther amended by Decree

NO. 64 & 65 OF Nov. 1992 respectively in order to enhance the

quality of services rendered by the council to the exporting

communities. Thus, planning, monitoring and international co-

operation department was added. This department is meant to

draw up strategic plans to ensure harmonization of the different

departments, so as to meet the objectives of the council. Hence,

improving on the influence the council has on her market. Sorfie

~f these as identified by (Adqsinq M. A.) are;

- Cross-border trade monitoring, whereby staff will be deployed

to work at the border on observatory capacity to note the type

of product leabhg the count0 - fbdaliy and informally.

33

- Door step export promotion campaign - A programme in

which council officials are expected to meet face-to-face with

export producers to work out modalities for enhancing non-oil

export performance.

- Renewed export potential survey on selected agricultural

product with the aim of knowing their marketing problems and

preferring solutions.

- Exploring available foreign technical aids on exports from

international organizations like the world Bank,

commonwealth and European union so as link exporters where

business opportunities exists. Furthermore, the council had

commercial desks and trade centers headed by commercial

attaches in the case of desks and trade commissioners in case

of Nigerian trade centers. As at 199 1, there were only eight (8)

of such desk and centers, (EW Nov. 1998) . But, it was most

unfwrtunate that most of these desks were closed down owing

to what the authority termed " Lark of fund". For economic

sake, the action had robbed the country and her exporters the

34

opportunity to get the logistic support and external link

required.

The council in her effort to foster activities, exists in

each state of the federation, a state export promotion

committee whose secretariat is located at the sate ministry of

commerce and industry. This committee is partly h d e d by

(NEPC). But, this had not really improved the council's

activities a lot. (Niyi G.O. 1986) argued that the new

structure adopted by (NEPC) via an improvement over what

existed and no doubt, would allow for greater efficiency and

performance of the council. But the fact still remains that

most of the departments are still overloaded hnctionally.

The photocopy of the oganigram is attached.

OBJECTIVES OF NEPC

In line with the dictates of the Decree establishing the

council .as well as other policy directives by the federal

government, the major objectives of the council include the

following:

35

- Reversing the trend whereby Nigeria has for so long depended

on a mono-product export of crude oil for her foreign exchange

earnings.

- Exploring and diversifying the export markets away from the

traditional terminal markets through the intensification of

export promotion with particular emphasis on non-oil product

amongst others.

2.6 INFLUENCING FUNCTIONS OF NEPC

The following are the functions of NEPC and how it has gone so

far in influencing her market;

1. With their statutory righthole to register exporters operating in

the economy, the council have registered over 13,000 exporters

between January - c June 1994 (EW NOV. 89). The council

have a door step programme which is designed to mbnitor the

activities of all these exporters and the potential exflohers with

a view to encouraging them to intensifjr their efforts in export

tr&-

36

2. The council holds regular consultation with private sector

groups. And to ensure adequate communication flow on issues

effecting exports in the country. Most recently, the council also

inaugurated an export forum which gave non-oil export

operators the opportunity to come together to discuss problem

militating against their effective performance. In 1993,

fourteen of such for a were organized in seven (7) states of the

federation and were given adequate support by some prominent

financial institutions and manufacturing concerns. (EW, 1998).

3 Another vital influencing function of the council is in her

communication flow and trade information dissemination.

Monthly publication of trade enquires fiom abroad and import

products, company- capacity, business and joint venturds.

NEPC also prepares marketing brief which provide, recpired

informatian abort expqfl market to enhance market access.

Such .includes, details of the economy per capital incothe,

phces, 6xport and import policy.

3 7

4 NEPC collaborates with other important foreign institutions and

association in carrying out its mandate. The Japan External

Trade Organisation (JETRO) is a typical example of such.

Institution. The two organizations have over the years worked

together on a programme known as CO-OPERATION

PROJECTS FOR PROMOTION OF EXPORTS AND

INDUSTRY IN DEVELOPING COUNTRIES (SC PROJECT).

Through its Product quality improvement programme, products

such as Cocoa, Precious and semi - precious stones, apparel

products, wooden furniture and gun Arabic were sent to Japan

at different times.

5 NEPC administers grant and other benefits related to export

promotion and development. So far, the council has disbursed

a total sum of Nl58,686,454.37 or export expansion grant fbnd

from 1989 - 1995 to about 373 companies. (see Table 2.1).

For the duty draw back scheme, it has granted refind of

85140,023,956.61 to 94 firms out of 156 companies that applied

(Tab. 2.2).

38

6 Also, the council has as function to provide technical assistance

to local exporters in such areas as export procedure and

documentation, transportation financing, marketing techniques,

quality control, export packaging, costing and pricing.

7 Finally, the council identify companies and products for export

market. It has been participating in virtually all domestic and

international trade fairs and exhibitions. In 1993 the council

influenced exports by sponsoring 61 companies to six overseas

trade fairs. It also took part on the ECOWAS trade fair.

Otherwise known as "DAKAR 95". Fifty-five (55) Nigerian

firms attended. Order generated from the fair. Came up to 9

million U.S. dollars. On-the-spot sales was & 790.000.

In a bid to encouraging participation of Nigerian Companies

in this international trade fairs, NEPC provide lots of incentives

to some of theq. These jpclpfles:

* Provision of constructed display stand at the country of

exhibition.

39 Air freighting of product sample to country of exhibition up to

maximum of 1000kg per company.

Transportation of company representative from the hotel to

exhibition ground and back for the duration of the exhibition.

Provision of stand assistance, interprete local languages where

English is not spoken.

Organisation and arrangement of business meetings with

members of organized private sector in the country of

exhibition.

Assistance in the procurement of visas for company

representatives.

NO OF COY

Table: 2.1

SOURCE: (Adesina 1995)

AMOUNT REFUNDED

645,009.78

PERCENTAGE [NCREASE

Total

Table 2.2

SOURCE: Adesina (1 995)

2.7 REVIEW OF RELATED LITJZRATURE

In a bid to estimate the economy estimate the economy

through the years 1977 - 1983 (Niyi G.O. 1986) suggested that the

period as stated above would be regarded as the pioneering period.

That is, when the seed for export promotion in Nigeria was sown.

Said he, 1976 "the Mortala/Obasanjo regin formulated the export

promotion decree which brought into existence an advisory body

charge with the responsibility to advice the government on relevant

matters relating to exports.

Also, in his paper "Export promotion in Nigeria Economy",

(Niyi G.O.) indicated that the council operated in a poorly financed

environment and its role vis - a - vis its supervisory ministry was

ill defined. His indication spells that the council m8y not have

performed so good in her effort to induce her consumers or

publics. But, despite all these, he still accepted that the council

was able to achieve the following.

- Arousing the nation's consciousness of the need for export

promot ion

4 2

- Stimulating the interest of both policy makers in the public

sector and the development and promotion of the nation's

export trade. All these were achieved via seminars,

symposia, trade information and exports missions. (Clifford

M. 1956) in his article, "Towards Nigeria's effective export

drive" indicated that prior to the period the council was

established, it was easier to import than export. He also

declared that, there was no need to export, hence the crude

oil could support the nation effectively. His opinion

potrayed the rough track the business of export went

through in Nigeria and the much influence the council may

have at present as the research intends to find out.

Also, (Coker .0. 1985) opined in his article, "how has

NEPC fired" that the council, accessing from what the then

chairman of the council Gen. Abizoge Geannel (rtd) said, that

while it. was not easy to put a price tag on the impact the council

had made since it does not handle exportation directly. To Coker,

the general however pointed to the comprehensive study on the

43

potential for the development and promotion of export fiom

Nigeria and through that, a basket of exportable product, were able

to be identified by the council. Coker lastly quoted the general

that producers of such products were been encouraged and

motivated to go into export business.

According to him, S l l million worth of potential orders

were generated. Similarly, is another trade mission to eastern parts

of U.S.A. in I984 where six producing companies took part.

(NEPC), he alleged has helped in the creation of international trade

fairs in Lagos and Kaduna. With all these claims, it may be

imperative therefore to argue that the council as at 1976 had

limited achievements as could be compared with the roles it was

made to play. As the basis of this research work, Much may or

nlay not be expected as the present efforts of the council will soon

be determined at the end of this work. Some of the pt-oblems to

this effect was said to be partly micro and macro economic

situations. Alade J.A. (1983) asserted that there were little or no

industries that were export oriented to supply the prodwed goods

4 4

for foreign market, in other to earn the much needed foreign

exchange. He went further to state that industries, (the little that

were available) were not even competent to add value to the

primary pruduce exported from Nigeria. He believed that if there

were industries to convert the produce into valuable raw materials,

it would have been better for the nation. Alade J.A, still on our

industries, lamented that the production capacity of our industries

found to be low. So many cannot even produce to meet the

shortage experienced internally and not therefore export. No

wonder Adalemo (1988) observed that, "when this is combined

that,

With the fact that domestic

demand for imported goods are not near being

Satisfied by current industrial promotion, the

Used for massive investment in the domestic

Industrial sector becomes obvious".

On the re-organisation of the council Ezekwe (lS)$Q in his

research wbrk, "the opportunities in Export trade" found that

4 5

many industrialists and exporters wanted the re-organisation of the

council since it was ineffective in taking the lead to create export

consciousness in the minds of Nigerian on export trade

opportunities. This was despite the formulated export incentives

by the government. However none according to his findings

subscribed to the scrapping of the council.

REFERENCE TO CHAPTER TWO

Coker onita

Niyi G.O.

Alade J.A.

Ezekwem .C.

Adelemo LA.

"How has (NEPC) fared" Daily Times, May 16 1985 P.5.

"Export promotion and the Nig. Economy" A Paper presented at the annual symposium of The Banking and finance houses Trade group of the Lagos chamber of commerce and Industry 22nd May, 1986 Pro.

"Export promotion a an industrialization Strategy. Problems and prospects in Nig. Ife social science Review. 1983 pp 56 - 66.

"The opportunities in export trade, A case for Nig. Export markets 1986.

"External Trade and Internal development, some policy issue" presidential address delivered at the 1988 annual conference of the ile ife May 3.) 1988.

Export World 'A' Timeless International trade e Jdurnal 1998.

Report of the committee on the re-organisation of the (NEPC) Lagos 1986.

~ ~ b l a j i T. (1992) "Solid minerals Mining ~ n d proocessing for Export" Address d~livered at A Seminar \ organized By (NEPC) Jos.

Sam Kurnar (1 962); A manual of sampling Techniques (London Her11 iman.)

Yamane Yaro (1 964): An Introductory Analysis statistics 3rd Edition (New Y ork, Harper and Raw Publishers.

NEPC Trade Magazine; The Export World Val. 2 No 3 Nov. 1998.

CHAPTER THREE

3.1 RESEACH DESIGN AND METHODOLOGY

Having gone this far, ie from chapter one through three, it

becomes vital to spell out procedures and sources of data collection

relevant in this work. These includes;

i, Methodology

. . 11, Data Sourcing

Determination of the population of the study.

Computation of the sample population.

Establishment of Questionnaires

Establishment of Sample letter and vetting of the

questionnaires.

METHODOLOGY

In addition to other research methods, the researcher decided

to adopt survey research. The influence on this choice was

basically on it relevance in allowing the use of important and wide

- spread research tools as, Questionnaires, Personal interview etc..

Finally, the options the researcher forgone were:

i. Experimentation

. . 11. Observations

Though observation formed part of activities in the field during

data collection stage.

3.1.2 SOURCES OF DATA

Data is a raw form of information. That is, the information

is still at a stage that no reasonable meaning may be extracted from

it, until after analysis was made. This research work though

directed on foreign markets, used a lot of data. As such, data used

in this research were obtained from both primary and secondary

sources.

1. Primary Sources of Data

Primary data as used in this study were those collected fiom

the source at first instance. No analysis was made out of them.

The reason for adopting such was to keep in touch with current

changes and variations that may have taken place within the periad

of the study. Especially, on the activities of (NEPC). Also, the

bulk of primary data used included:

i. Personal interview on (NEPC) staff.

. . 11. Observations on activities at the cargo area of

international Air port Lagos.

On instruments used for the research, the researcher adopted

the use of telephone, questionnaires and a cassette recorder to

preserve useful oral information from (NEPC) staff.

. . 11. Secondary Sources of Data

These are information or data that had under went previous

analysis. Such information were vital because of their relevance

on the topic. Some of these are:

i. Relevant text books on Export Promotion

ii. In house journals from (NEPC)

. . . 111. African business diatory on Export

iv Trade magazines

v. News - papers

%1.3 DETERMINATlON OF POPULATION SIZE

As stated on introduction of this topic, Nigerian Export

market consists of foreign buyers of her non- oil products.

Basically, those at (ECOWAS) and (EEC) regions. The researcher

used responce from some of the chambers of commerce in Nigeria.

ie records kept over the period. As such, these chambers of

commerce have already made available, information on the

activities with the council and also deals directly with actual

exporters and foreign importers of Nigeria products.

Moreso, the arrangement in (NEPC) owing to administrative

reasons are in five regions.

ie 1. LAGOS

. . 11. PORT - HACOURT

iii. KANO

iv ENUGU

The population of the topic of research is centered on all

these regions as stated above. Though, each of these was reduced

to represent a particular area of study in the sample size

determination.

3.1.3 SAMPLE SIZE DETERMINATION AND

COMPUTATION

The sample size determined from the above population wee

in two kinds:

i. The first for the (NPEC) staff

ii. For the exporters through the records from the

chambers of commerce.

I. Determination of (NEPC) Sample size

Yaro Yamana (1964. P. 280) in his book propounded a

formular that was used by the researcher in determining the

sample size.

'Thus: n - - N 1+%(el2

e

Where N = Population size

n = Sample size

e = Limit of tolerable

error (0.05)

5 2

The formular is used in this study owing to it convenience

on problems that has estimated population figure. Also, it relation

to the application of the normal approximation with a 95%

confidence level and a 5% error tolerance made for the choice.

From available record, though estimated to a reasonable

extent from the primary survey, (NEPC) has, as a matter of

administrative convenience, decentralized zonal offices in five (5)

locations.

Viz (a) LAGOS

(b) PORT - HACOURT

O KANO

(d) ENUGU

(e) JOSc

Each of these offices has an average staff strength of about

30 (EW report Nov. 1998). Unless the head office that has more.

ie Abuja. .The head office was ignored as a sample unit because it

was considered as an administrative office. Hence, only little

documentation work is done there.

ie Location Estimated staff

Lagos 30

Port Hacourt 30

Kano

Therefore, N = 90

. . 11. Determination of Exporters Sample Size

The researcher observed that existed relationships between

chambers of commerce and (NEPC). As such, most of the Nigeria

exporters (as listed) in the chamber were registered officially with

(NPEC). Each of these zones previously selected was registered

exporters. A total of 38 registered and potential exporters were

recorded inathis proportion.

i. Lagos 1 1 (Eleven)

. . 11. Port Hacourt 9 (Nine)

iii. Kano - 18 (Eighteen) 38 Thirty Eight -

To avoid ambiguity, the researcher further reduced the

number to be more manageable population sample. This he

did with the aid of allocation formular by kuma (1962. P 24)

Where nh = the number of sample taken from each

stratum.

nh = Total number of exporter in each zone

n = The sample size for the study

n - G

- the population size.

In doing this, the researcher computed the value of the saqple size 'n' as thus: = N

f i ~ ( e ) ~

Therefore, for Lagos zone the number of exporters

considered were;

Port I-Iarcourt zone;

And for Kano zone the number was

The high number of exporters recorded in Kano area was

said to have caused by farmers that exports groundnut to west

African regions. Finally, the questionnaires distributed was

56

restricted to senior executives and middle management staff in

each of these zones considered.

3.1.4 QUESTIONNAlRE FORMULATION AND

CIRCULATION

Two sets of questionnaires were designed. One for (NEPC)

staff selected and the other for exporters at each of the zones as

earlier calculated. Questions asked included multiple choices.

Where respondents were expected to tick fiom alternatives. Some

open-ended questions were also used. This was to enable

respondents express their views. Lastly, dichotomous questions

were formulated. Respondents, were expected to tick fiom only

'yes' or 'no' options.

3.1.6 SAMPLE LETTER DISTRIBUTION AND VETTING

The sample letters were in form of questionnaires as stated

before. The distribution was carried out without problems or

duplications. Though, not all were returned. The extend of return

was explained in chapter four.

5 7

Some of the questionnaires and other official letters

administered were vetted to separate wrongly answered questions.

Finally, only 96% of the letters were used for the research

work.. The detail is in chapter four (4).

OTHER MEANS OF PRIMARY DATA COLLECTION USED

Oral Interview

Oral Interview was used at a stage where the researcher

found direct discussion with some highly placed staff of both

(NEPC) and exporting firms vital. This was to re-affirm the out

come of expected results from questionnaires.

Personal observation

As previously stated, the research work took the researcher

to those zones that made up the areas of study.

As such, personal observations were made especially on pre

and post shipment arrangements. This observation revealed to the

researcher that most of the buyers sends in their staff down to

Nigeria or used appointed allies already established in the country

to facilitate shipments, sequel to (NEPC) incentives.

CHAPTER FOUR

4.1 ANALYSIS AND INTERPRETATION OF DATA

The complekd questionnaires for the two groups of sample

sizes were collected edited and analysed.

In the analysis, tables and simple percentages were used to

represent data or information on the topic of study as the basic

statistical techniques employed. Also used was pictograins to

animate some data.

The questionnaires distributed were 98. That was in the

ratio 73:25 on staff of (NEPC) and Exporters respectively. But,

out of this figure, only 90 were collected and used. The difference

of 8 questiannaires were either not returned or were completed

wrongly by respondent. Hence, the over all analysis was based on

90 respondents that represent 91% of the total q u e s t i o m k e ~

administered. See below tables.

TABLE A: DISTRUBUTION AND COLLECTION OF

QUESTIONNAIRES FROM EXPORTERS

ZONE

LAGOS PORT-

HACOURT

SOURCE: Survey Data 1999

TABLE 'B'

DISTRIBUTION AND COLLECTION OF QUESTIONNAIRE

FROM (NEPC) STAFF.

NUMBER lJSED

KANO TO'l'hL

Yo NUMBER SIIARED

10

8

f

SOURCE: Survey Data 1999.

The tables below show-cases the analyses on those research

questions. First, on exporters or consumers to (NEPC).

17

NUMBER SHARD

NUMBER BETRUNED

9

8

NlJMBER NOT

13

NUMBER NOT COLLECTED

COLLECTED 1

-

35 I 30 I 5 4

NUMBER USED

9

8

30

%

90

100

- 13 76

QUESTION 1 : What is the name of your company?

From the respondents it was obvious to note that only about

eleven (1 1) companies were represented. The names of these

companies or finns are at appendix behind

QUESTION 2: Are you registered with (NEPC)? The answers

to this question were all negative.

QUESTION 3: If yes in question (2), how long have you been

in the export business? Out of the thirty respondent used, Only

about five (5) reported been established before 10years. Twenty

five others were existing before the establishment of (NEPC).

QUESTlON 4: Which part of the world do you export to? Ten

respondents representing 33.3% indicated interest in only Afiica,

five, representing 16:6% only in Europe while the rest said all of

the above.

QUESTION 5: Is the export procedures adopted by your firm

influenced by the activities of (NEPC)?

TABLE C:

ANSWERS

YES

RESPONDENTS PERCENTAGE

SOURCE: Survey data 1999.

Twenty seven respondents representing 90% of the sample

population indicated that they export procedures is influenced by

the activities of the council while only 10 decline to such

influence.

QUESTION 6: If yes above, are such influences as a result of the C

incentives by the council or its statutory?

TABLE D:

ANSWER

INCENTIVES

STATUTORY

27 90

3 10


Ninety percent of the respondent showed that the influences

on their activities were as a result of incentives from the council

while ten percent only stated that her activities over the period

were basically statutory.

QUESTION 7: If the answer to the question above is through

incentives, please tick such incentives.

ANSWERS

FINANCIAL

QUESTION 8: HaveYhe assistance of the council improved the

performance of your export business?

COMPETITIVE

RESPONDENT

24

Yo

80

4 13.3

TABLE E:

SOURCE: Survey Data 1999.

Yo ANSWERS

YES

The returned questionnaires showed that 25 respondents

representing 83% admitted that their enhanced performance was as

a result of the activities of the council.

QUESTION 9: If yes, what would be the nature of these

improvements.

RESPONDENTS

The improvement as stated by these respondent is contained

I

in appendix 3. Though it was observed that majority was sales t

25

and profit up ward margins.

8 3

QUESTION 1 0: If the federal government anticipates the closure

of the council as was done in the case of foreign deshs; would you

accept that as a welcome development?.

TABLE F:


ANSWERS

YES

NO

An over zealous response of 100% portrayed the acceptance

of the councils not to be closed. That could be as a result of

RESPONSE

-

30

benefits the exporters receives from the council. In one of the

Yo

-

100

questionnaires received, a respondent added as an answer on his

own that, the union of exporter will kick against any such plan

even if that was the essence of administering this questionnaire in

disguise.

QUESTION 11: ' Despite the (NEPC) are there any other export

promotion agencies used by your industry?

TABLE 9:

I ANSWERS I RESPONSE I %

26 of the respondents indicated that they have other

agencies. This represented about 66.6% of the total sample size.

While only 4 respondents negated the question. That means that

YES

NO

the activities of export promotion is not controlled by (NEPC)

alone.

QUESTION 12: If yes, please list such promoters. The 26

respondents that accepted having other export promotions listed

basically the (EPZ) export processing zone in calabar. Hence,

there was question asked to that regard, it was difficult to accretion

the over-lapping level of both government establishments. The list

of other export promotion agencies, should irlclude non

government establishment. Some argued.


26

4

66.6

13.3

6 6

The tables below also show - case the analysis on other

calibers of responding audience. That is (NEPC) staff.

QUESTION 4: From your official record, were there imparts

made by your council on the export markets?

Let each of the pictorials represents ten respondents.

NO YES

Because the responce from these staff was 2050 ratio, it

gave room for a pictorial to be used. As such those that accepted

that imparts were made represented 71.4% while the negatives

represented only 28.6%. That was an acceptance of impacts from

the council. though otherwise was not naturally expected.

QUESTION 5: If the answer to question (4) is yes, were these

impacts in form of incentives on Nigerian exporters or directly on

buyers?

67

TABLE 4


Basically, the 100% response to that question was an

indication that all the council's efforts is directed to Nigerian

exporters. Who are the basis of this research work.

QUESTION 6: If no to question (4) above, what are the reasons

for stagnation.

The seventy respondents that answered no in question (4)

four listed reasons. Such is reflected in appendix (4) four.

QUESTION 7: Please list some of these incentive as stated yes in

question (5) five.

All the incentives listed are contained in appendix (5) five.

QUESTlON 8: Is any or all the incentives listed has relationships

with the influence of council and the need to promote locally

produced Nigerian goods?

Yo

-

100

ANSWERS

BUYERS

EXPORTERS

REPONSE

-

70

TABLE I:

ANSWERS RESPONSE

YES

I I L


48

TOTAL

Most of the respondents to the

70

question accepted

relationships existing within the council and locally produced

Nigerian goods. Such over whining response indicated a positive

acceptance. Though such an answer was not too far from

expectations.

QUESTlON 9: What re-action of these exporters confirmed y o u

stand point in yestion eight (8).

Only the export officer was able to give on official figure on

this question. His answer is contained in appendix six (6).

Predictably, his answer portrayed positive assessments on the

council's performance as it concerned the exporters.

4.2 TEST OF HYPOTHESIS

GENERAL DESCISION RULE FOR HYPOTHESIS I

Decision making calls for the use of hypothesis . This in

turn suggest explanations as basis of reasoning Vis for making

either the right or wrong decisions. Testing of hypothesis in I

involves the use of a statistical technique called z- test proportions.

The calculation of the z - test values are compared to the critical

values. This critical values is obtained Gom the z - test table at

5% level of significance and a determined degree of freedom.

Each hypothesis (110) has a corresponding alternative (HI).

The general role is that the Null (Ho) hypothesis will be

accepted if the calculated z-test value is less than the critical value

in our chosen 5% level' of significance or type 1 error tolerance as

may be called and a determined degree of freedom. But if the z-

test value is less than the critical value in our chosen 5% level of

significance or type I error tolerance as may be called and a

determined degree of freedom. But, if the Z - test value is less

than the critical value we would conclude that the observed

frequency does not differ significantly from the expected

frequency. If however the calculated Z - test value is greater then

the critical value we will reject the Null (Ho) hypothesis and

accept the alternative. In this case, we will conclude that the

expected frequency differ significantly from the expected

frequency. Also used in this researcher for hypothesis 11 and 111

was the proportion estimate.

Finally, the choice of a z - test for the hypothesis was

because, the researcher wanted to test that the proportion of a

population posses certain features that is equal to some particular

proven characteristic. Also, it is note worthy to state that the value

of 'n' is greater than 30. Hence the essence of using z - test

formular. %

TEST OF HYPOTHESIS I

Ho: There are relationships between the activities of export

promotion council and the rleed to pidrnote locally produced

Nigeriah godds.

HI: There are 110 relationship between the activities of export

promotion council and the need to promote locally produced

Nigerian goods.

SOURCES OF QUESTION: (NEPC) staff

Question 8: Table I.

CONTINGENT TABLE TO HYPOTHESIS I

YES

Using the Z -<test proportion as our test statistic, we would have Z = X - n p

TOTAL,

Where X = no of successes from the sample size

48

N = samplesize

68.6

70 100

P = Proportion of success expressed in

terms of this sample.

Therefore: x - - 48

= 0.01287 (Calculated value of 2)

To be able to adhere to our decision, rule the table

value of Z should be sought for. Using 95% confidence interval ie

5% level of significance.

DECISION RULE

Reject Ho if the calculated Z value is greater than table value,

other wise, do not reject Ho.

DECISlON

Since calculated value Z = 0.0128 is less than table value Z = 196,

we will accept Ho. This means that there are relationships between

the activities of export promotion council and the need to promote

locally produced Nigetian goods.

TEST OF HYPOTHESIS I1

Ho: There is correction between Export of goods and service

promot ion procedures and the Nigerian Export promotion

council.

7 4

1-1,: There is no correction between export of goods and service

promotion procedures and the Nigerian Export promotion

council.

SOURCES OF QUESTION: Exporter/consumer

Question 5, Table 'C'

Contigent Table to hypothesis I1

Though simple percentages were used on this hypothesis testing to

Determine the degree of response on the question, the researcher

decided to solidify his claim with the use of a proportion

estimation formula (OKEKE 1995). The choice of this formula

was based on it simplicity and owing to the fact, that sample size

here is not more than 30 respondents unlike the case in hypothesis

I.

Proportion Estimate

Where:

P = Proportion of success.

N = Sample size

- 5% (at 95% confidence interval) (1.96)

Therefore: P - - 27 = - 0.90 30

Interpretation

As said earlier the essence of this estimation was just to cement or

consolidate the result of the former simple percentage computed.

7 6

As such, the result 78.6% and 101.3%'? With 95% confidence

interval confirmed that there is correction between export of goods

and services promotion council as shown in table 'C'.

TEST OF HYPOTHESlS 111

Ho: The incentives granted by (NEPC) to exporters has

inducements on such exporters.

HI: The incentives granted by (NEPC) to exporters has no

inducements on such exporters.

SOURCE OF QUESTION: Exporters Question 8 Table 'E'

Contingent Table for Hypothesis 111

RESPONDENTS

Total

Aho with the use of proportion Estimate, we

more confident value for the hypothesis.

would estinlate a

Thus 1' + & V(1-P) n

With all our variables having the same connotations as in

hypothesis 11.

Where 1' = 0.83 (25) 30

1 - p = 0.16 I1 - - 30

- - 5% = 1.96

Interpretation

From the above, it was obvious that Ho should be accdpted

ie incentives granted by (NEPE) to her exporters has inducements

7 8

on them following a range of 96% and 70% levels. With such a

range, it solidifies the above fact with all assurance that Hw&~~l ld

be accepted.

7 9

CHAPTER FIVE

SUMMARY, RECOMMENDATION AND CONCLUSION

5.1 SUMMARY OF FINDINGS

From the survey carried out to appraise the influence of

Nigeria Export Promotion Council (NEPC) on her Export market,

several summarized findings were made. Some of these are listed

and discussed below:

(a) There are relationships between the activities of Export

Promotion Council and the need to promote locally

produced Nigeria goods. This finding was made possible

through evidence revealed during and after the study. For

instance, the hypothesis tested with questions in table I

proved that the preposition was a fact. More so, the official

record as was revealed by the only export officer on duty

was another supportive evidence. That was question (9) in

the (NEPC) designed questionnaires. His answer amongst

other things, show-case some positive assessments on the

council's performance on the exporters.

Finally, question 8 and table E in the exporters

questionnaires indicated a sharp acceptance to this

preposition. 83% of the total respondents accented that the

council contributed to their enhanced performance. As such,

influences their export of locally produced non-oil goods.

(b) That the incentives granted by the council to exporters has

inducement on such Exporters. Though the simple

percentage as analyzed in question (6) table (D) was enough

to have concluded that the preposition was correct, the

researcher went further to subject the data to a more

thorough analyses in form of proportion estimate as

computed in hypothesis 11. In addition, a subsequent

question in (7) indicated that those incentives were

financially, profit and competition based. Though, financial

incentives dominated.

On the other side, reactions as was seen in question (10)

table (F)cemented the claim sequel to a negative answer on

the possibility of the federal government closing the Nigeria

Export Promotioil council. All these were evidence that the

exporter has something to benefit from the council. No

matter the magnitude.

O That there is correlation between the council and the Export

of goods and services. Though the correlation had been

made evident in other analyzed questions, it was possible to

support the acceptance with those in question (5) table 0.

Where 90% of the respondent, with a more solid analysis

under proportion estimation of between 96% and 70% .

That is to believe that for these exporters to benefit fiom the

incentives they must adhere strictly to the procedures as

directed by the council.

On the general, it was observed that the service of the

council was quite appreciative as it concerns Nigerian

exporters. Though, these influences still fall short of the

required level for establishing the council.

5.2 RECOMMENDATION

It is not far from the truth for one to recommend that the

Nigerian Export promotion council should be made to face reality

of it establishment in 1976. This, as surprising as it may sound,

owing to positive result from the study remained the true position

of what the cou~icil ought to be. Government should overhaul

activities of the council and proffer remedies to strengthen her

future performance. This recommendation was made possible

because of unlimited and unsatisfied exporters seeking to be

assisted by the council.

Furthermore, the council through a government directive

should open some, if not all her former commercial desks abroad.

The closure has coursed ihe council a great deal.

They reach and performance to these areas has been

distorted. That is to accept that no much influence is expected on

exporters to those regions or country.

Again, the number of export promotion agencies in the

country should be increased. Though the Export processing zone

83

calabar is there to compliment the export need of the country. It is

not yet totally tapped. Most people are still in the dark on the

procedure, and requirements to meet before going into export

business. If this is enhanced, it would assist the nation from mono

to a multi non - oil exporting country in the world.

Finally, the council should encourage other exporters to get

in the business of exporting. This, the council can do by mounting

a campaign locally and internationally.

5.3 CONCLUSION

Conclusively, the research work had been done and analysis

made on it. The analysis exposed those influences and problems

Nigerian Export ~romohon Council has on her export market.

Though, all those influences were basically paper work some of

them still formed reasons for continue utilization of the council's

services by so many exporters.

The government is advised to approve reasonable sum of

money to the council to enable her perform the duties she was

made to do very well. That of course, under a serious and trusted

chairman. With this done, the council would improve on her

incentive granting mechanism to the needy or participating

exporters.

'This in turn would enhance the positive influences the

cou~lcil has on her markets.

Finally, as a matter of urgency, the council should open up

all her closed commercial Desks to enhanced better flow of

information and bridge the long-standing communication gap

amongst exporters in foreign land and in Nigerian.

All these hopefully would add to the good influence the

cou~lcil have had on her customers over the years.

Definition of terms

NEYC - Nigeria Export Promotion Council

E W - Export World

EEC ' - European Economic Community

ECOWAS - Economic Community of West African States.

85

4&N3BLIOGRAPH AND REFERENCES

AHOLAJ 1 .T. (1 992) "Solid Mineral Mining and Processing for export". A Keynote address delivered at a seminar organized by NEPC, Jos.

ROLF SERINGHAUS F.H. & ROSSON P.J. (1990). "Government Export Promotion: A Global Perspective" Ruotledge (London & New York).

NEPC ANNUAL REPORT (1988) An (NEPC) yearly Publication on Export in Nigeria.

THE EXPORT WORLD (1 998) A Timeless International Trade Magazine Vol. 2 No. 3.

A GOS'I'ON 1 91985) "A case History is Export Success. The Republic of Korea" International Trade Forum Vol XXX (I).

IPAYE N.A. (1990) Implementing A Scheme for Effective Development of the Export . Manufacturing sector, The financial Role" A Seminar paper at Eko Expo Forum held in Lagos.

SIDI ALIY U .A. (1 992) Operations of Duty Draw back Duty Suspension and Manufacturing - in - Bond Schemes in Nigeria. A paper \\

presented at the NEPC in - house workshop in Lagos.

SOM KUMMAK (1962): A manual of sampling Techniques (London herneiman)

YAMANE YARO (1 964) An introductory Analysis 3rd Edition (New York, Hanper and Raw Publishers.

PHILIP KOlLER (1984) Marketing Management lmplementation and Control 5th Edition. Prentice Hall.

OKEKE A.0.(1995) Foundation statistics for Business Decision High Mega System Ltd.

QUESTlONNAlKE 'A' FOR (NEPC) STAFF

Please tick ( d ) as appropriate

PERSONAL DA'I'A

Name of Respondent.. . . . . . . . . . . . . . . . . . . . .

What is your educational qualification:

i. Elementary Six ( ) ii. '0' level ( )

iii. NCEJOND ( ) iv. BScIHND ( ) v. Above ( )

What is your official position? (Please state)

Length of service? (Please state)

Marital status? Single ( ) Married( ).

Age (please state)

OTHER RELEVANT DATA

(4) From your oficial. record are there impacts made by your

council on the export market? i. Yes ( ) ii. No ( )

(5) If answers to question (4) is yes, were these impacts inform

of incentives on Nigerian exporters or dire~tly on buyers.

i. yes ( ) ii. No. ( )

(6) If no to question (4) what are the reasons for such

stagnation. (Please state reasons)

(7) Please list some of these incentive as stated yes in question

( 5 ) .

(8) Is any or all the incentives listed has relationships in the

influence of Export promotion council and the need to

promote locally produced goods. i. Yes ( ) ii. No. ( )

(9) What reactions of these exporters confirms your stand point

in question 98)? Please state as appropriate.

QUESTXONNA~RES 'B' FOR CO~@RJMERS

(1) What is the Name of your Company? Please state.

(2) Are you registered with the Nigeria export promotion

council. i. Yes ( ) ii. No. ( )

(3) If yes in question (2) How long have you been in export

business? i. Below lOyrs ( ) ii. 10 - 20 yrs ( )

iii. Above 30yrs ( ).

89

Is the export procedures adopted by your firm influenced by

the activities of Nigeria Export Promotion council?

i. Yes ( ) ii. No. ( ).

If yes, are such influences as a result of the incentives by the

coiuicil or its statutory? Please coinment.

If the answer to the question is through incentives, please

tick such incentives. Financial ( ) Profit ( )

Competitive Incentive ( ).

Have the assistance of the council improved the

performance of your export business? i. Yes ( ) ii. No. ( )

If yes, what would be the nature of these improvements?

Please list (a) Increase profit ( )

(b) lncreased incentive ( ) (c) knowledgeable business

practices ( ).

(10) If the federal government anticipates the closure of the

council as was done in their foreign desks, would you $eke@

that bs a welcomed development? i. Yes ( ) ii. No, ( ).

(11) Despite the (NEPC), are there other export promotional

agencies used by your industry? i. Yes ( ) ii. No. ( ).

(1 2) If yes, please list.

QUESTIONNAIRES FOR (NEPC) STAFF AND NIGERIAN

EXPORTERS

School of Post Graduate Studies MBA - Marketing Option University of Nigeria Enugu - Campus

Dear S irIProE/Dr/Mr/Mrs/Ms. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The enclosed research Questionnaire is submitted herewith for

your action pleases. The research study is required by the

Department of Marketing, faculty of Business Administration

University of Nigeria for a Post Graduate Degree Award in

Marketing.

The research is strictly for academic purpose and any information

supplied would be treated with utmost confidence.

Please, feel fiee to choosk any information herewith and mark (4 )

in the box provided.

Tbzi-fik-pou for an anticipated favour.

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