IMPACT OF FOREIGN GOODS ON NIGERIAN CONSUMERS.
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
IMPACT OF FOREIGN GOODS ON NIGERIAN CONSUMERS.
Chapter One: Introduction
1.1 Background of the Study
A fundamental problem for the Nigerian economy is the establishment of successful domestic firms that offer its people with necessary goods and hence contribute significantly to the country’s economic progress. ‘
Nigeria has geographical importance in Africa due to its potential for growth and development, abundant and everlasting natural resources, diverse culture, and trade unity with other African, American, European, and Asian countries
which gives her an advantage in float other countries’ markets with its products; however, charity, as they say, begins at home; thus, domestic products must be valued and patronised in the domestic market.
It has been found that Nigerians have a negative attitude towards manufactured in Nigeria products. In an effort to promote Nigerian-made products, the Central Bank of Nigeria (CBN) prohibited commercial banks from issuing dollars for the importation of specific products last year in order to develop the local manufacturing sector, increase patronage of homemade goods, and relieve pressure on the naira.
As pressure on the naira grew due to the country’s high import expenses and poor cash receipts from exports, the federal government increased efforts to encourage Nigerians to buy locally created items.
Individuals, organisations, and politicians, notably Senators Ben Murray Bruce and Enyinnaya Abaribe, ramped up the campaign through social media and exhibitions.
The government uses monetary and fiscal measures to discourage Nigerians from purchasing foreign items. These initiatives raise the cost of international goods relative to domestic ones.
It is also worth noting that domestic products have improved in terms of quality, meeting the needs of the country’s consumers. The initiative was bolstered by foreign direct investments in Nigeria’s core production sector.
Given these developments, one would expect customers’ appetite for foreign items to drop. However, it appears that the pattern is still changing.
For example, despite improvements in the quantity and quality of domestic rice and textile products, Nigerian markets continue to consume a large amount of foreign rice and textile items.
In order to stimulate the purchase of Nigerian items, the standard and quality of some of those being produced have been raised. The majority of cloth used today is made from cotton or synthetics woven into fabric in big textile factories.
In general, Nigerian customers prefer imported items over made-in-Nigeria goods; the same is true for textile materials. Foreign textiles (produced in Switzerland, China, India, Korea, and Holland) have dominated Nigeria’s textile market.
Imported fabrics are of high quality and expensive. The majority of medium and upper-class folks wear garments made of foreign materials. Nigerian-made textiles are preferred by lower-income residents who cannot afford the high-priced imported textiles.
To preserve its struggling textile industry, the Nigerian government has prohibited importation of all printed materials. Nigeria now has only 40 local textile factories, a fraction of the number that existed in the mid-1980s.
The government stated that it made the decision to defend the market from dumping, which occurs when exported items are sold below their usual worth. This study aims to assess the influence of imported goods on Nigerian consumers.
1.2 Statement of the Problem
Nigeria’s seeming preference for foreign-made items has been a key impediment to its efforts to grow its industrial sector. The most apparent embodiment of this problem is the seemingly intractable problem of smuggling, despite successive attempts by Nigerian governments to limit the indiscriminate entry of consumer goods.
Some notable initiatives to combat this prejudice against locally produced items include a prohibition on certain imports and concerted promotional calls to Nigerians to buy Nigerian-made goods on radios and televisions.
No amount of patriotic slogans about made-in-Nigeria products has been able to change this trait among Nigerian consumers. It has persisted to the point where many retailers in Nigeria employ foreign tags or labels as a selling tactic, particularly to explain high product pricing.
Discrimination by Nigerian consumers is most prevalent in the textile business. Nigerians tend to neglect locally produced materials in favour of imported ones.
This negative attitude towards home-made products contributes to the economic progress of advanced countries while pushing the country’s cultural legacy in numerous sectors of art to the background.
1.3 RESEARCH QUESTIONS.
The following are some of the questions that this study aims to answer:
i) What are the causes behind Nigerian customers’ high preference for foreign goods?
ii) What are the challenges that consumers face when deciding between foreign and locally created products?
iii) How do Nigerian customers’ preferences for foreign items affect the Nigerian economy?
1.4 PURPOSE OF THE STUDY
The primary goal of this study is to analyse the impact of imported goods on Nigerian consumers. The precise aims are:
i) Identify the causes behind Nigerian customers’ increased preference for foreign items.
ii) To examine the challenges that consumers experience while deciding between foreign and locally created products.
iii) To evaluate the influence of Nigerian consumers’ choice for foreign items on the Nigerian economy.
1.5 RESEARCH HPYOTHESIS.
The research hypotheses to be tested are:
i) Consumers do not display favourable behaviour towards manufactured in Nigeria products.
ii) Consumer perceptions about made-in-Nigeria items influence their attitude towards the products.
1.6 Significance of the Study
The study revealed that the rate of smuggling textile materials into this country is alarming, and the country’s foreign reserves are being syphoned to foreign countries, increasing their economic value and creating employment opportunities for these countries, while increasing unemployment and poverty in our land. This research is crucial because it will act as a valuable reference for future studies and even Nigerian policymakers.
1.7 SCOPE OF THE STUDY.
This study focuses on the impact of imported goods on Nigerian consumers. Efforts were made to establish the causes for Nigerians’ preference for imported goods over locally produced goods. The study will focus on policymakers, students, and producers of locally created items in Nigeria.
1.8 Limitations of the Study
The study work presented numerous problems, two of which were particularly remarkable. One of them is the time constraint, which restricted the locations covered by the researcher.
Another was that the researcher had a tough time getting information from many consumers because they mistook the researcher for a customs official or a covert security intelligence agent.
1.9 Definition of Terms
The following terms were utilised throughout this study:
Foreign goods: a good transported into a jurisdiction, typically over a national border, from an outside source.
Consumers are those who buy products and services for personal use.
Preference: a strong preference for one alternative over another or others.
Need help with a related project topic or New topic? Send Us Your Topic