ROLE OF NIGERIA EXPORT PROMOTION COUNCIL (NEPC) IN EXPORT PROMOTION IN NIGERIA
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ROLE OF NIGERIA EXPORT PROMOTION COUNCIL (NEPC) IN EXPORT PROMOTION IN NIGERIA
ABSTRACT
This study focused on the role of the Nigerian Export Promotion Council (NEPC) in export promotion in Nigeria. The goal was to determine how successfully this organisation has promoted non-oil exports in Nigeria. The complete population of forty-three (43) NEPC respondents from the Enugu Zonal Office was investigated.
Aside from secondary data gathered from a literature research, primary data were gathered by questionnaire. The emergent data were analysed using descriptive statistical instruments, specifically tables and percentages.
There were clear indicators that the council had met its expectations, since the volume and value of non-oil exports increased as a result of the council’s numerous efforts. However, gaps that impeded the full implementation of the country’s non-oil export policies were identified.
A number of proposals were also made, including improved council services, better funding for export promotion, and so on, as this is the only way to justify the NEPC’s formation.Chapter one
INTRODUCTION
Background of the study
The purpose of this study is to look into the function of the Nigeria Export Promotion Council (NEPC) in export promotion in Nigeria.
Export, often known as international marketing, is the selling of goods and services outside the borders of a company’s native country. It is justified by opportunity costs that exist in different countries,
as well as my theories of comparative advantage, which state that a country benefits from trade when it exports products that it is capable of producing in abundance, both for its domestic and export markets.
Inversely, a country benefits by importing things for which it has no comparative advantage. The notion implies that exports are intended to meet commitments made for imports. It is then critical for any nation to engage in successful commercial activities aimed at increasing its exports, because the amount to which it can honour its import obligations is heavily reliant on the number and value of its exports.
In practically every emerging economy, growth in exports is inextricably linked to job creation and rising living standards. This is because development-related imports must be financed in foreign currency. As a result, without a diverse export base that generates adequate foreign money, a developing country will struggle to thrive.
Since the early 1970s, Nigeria has been entirely dependent on crude oil for its foreign exchange requirements. Because oil was providing more than enough to meet these needs, no one bothered to look for or invest in other sources of earning foreign exchange.
In fact, other previously viable sources, particularly commodities, were almost completely abandoned, as the groundnut “pyramids” vanished from Kano, cocoa “Bush” gained wings and left the west, and palm fruits disappeared from the east due to flooding.
As a result, Nigeria, which previously exported a variety of cash crops, has become a single-product exporter of crude oil. Over time, it became clear what problems a mono-product economy posed.
Nigeria was much more pitiful because her only product was a finite natural resource with an extraordinarily high price. If the country’s economy was to thrive and remain stable, it needed to actively diversify its export portfolio as soon as feasible.
This resulted in the formation of the Nigerian Export Promotion Council in 1976 to implement strategies, policies, and projects to increase Nigeria’s non-oil exports. However, before it could achieve its national goals, the realities of a mono-product economy became apparent.
Crude oil, which reached an all-time high of $40 a barrel in the early 1970s, was interwoven in economic policies and glutted. National planning and implementation of development projects become nearly impossible.
It was impossible to keep up with recurring expenses, let alone capital projects. By 1986, the glut’s destructive repercussions were visible in every aspect of our national life, as crude oil prices fell to an all-time low of $14 per barrel.
Our economic prosperity had turned into economic disaster. The economy had become Aramaic, and something had to be done quickly to revitalise it.
In 1986, the federal government implemented a Structural Adjustment Programme (SAP) aimed at revitalising the economy through a variety of belt-tightening measures that accompanied it. One of the major pillars of SAP was the rapid development and promotion of non-oil exports in Nigeria with the goal of breaking the country’s over-reliance on a single export commodity, thereby stimulating growth in other sectors and diversifying the productive base of the economy, with a focus on import substitution industries.
The reality of that programme is the identification of certain fundamental distortions or structural flaws in the organisation of the national economy and life. By this attempts to restructure the Nigerian economy using its distinctive strength to generate or create its own opportunities,
a lot of efforts have been made between 1986 to date to touch on nearly all facets of socio-economic life in the country in order for a now economic entity to be born, giving its citizens a new lease on life.
A number of export agencies have been created by the government to complement the efforts of the Nigeria Export Promotion Council (NEPC) in The council plays a number of roles in the nation’s economic development while carrying out its legislative tasks.
The project’s goal is to determine how much the Nigeria Export Promotion Council has helped promote non-oil exports in Nigeria.
STATEMENT OF PROBLEMS
The Nigeria Export Promotion Council, Nigeria’s premier export promotion agency, is not an industrial or commercial organisation. It is a service organisation that uses the government’s legal backing and money to provide a wide range of free services to manufacturing and other service enterprises, all with the goal of getting their products into export markets, as well as other associated government organisations.
The term “promotion” comes from a Latin phrase that means “to move forward”. Today, it is viewed as a communication attempt to persuade others to accept principles, thoughts, or goods (Eagles et al, 1975;4).
According to Zikmund et al. (1986; 746), promotion is “the marketing communication process that uses personal or non-personal means to remind, inform, and persuade buyers or potential buyers of the organization’s products.”
The goal of marketing is to tell customers about the benefits of a new product or service; to remind them of the continuous availability of the old ones; and to urge them to purchase these products or services in the long run.
The tasks before NEPC here are: how will intending exporters/entrepreneurs appraise the foreign market, how will they know the exportable items and the nations that require product standardisation packages and packaging, and so on.
Implementing these tasks requires the employment of the following marketing promotional tools: advertising, personal selling, sales promotion, publicity, and public relations.
This is not a simple task because the application of some of those methods to the activities of a non-profit, non-manufacturing (service) agency like NEPC may be misconstrued.
For example, how does such an organisation discuss sales promotion? The NEPC uses all aspects of promotion to promote non-oil exports. This is what we want to offer to the fort while also evaluating the success of their efforts.
OBJECTIVE OF THE STUDY
This study aims to achieve the following objectives:
Examine the Nigeria Export Promotion Council’s role in promoting non-oil exports in Nigeria.
To establish and assess the efficiency of the promotional instruments used by the NEPC to carry out the activities.
To explore the complementing function of other government agencies/institutions in export promotion, such as the Nigerian Export Processing Zone Authority (NEPZA), the Nigerian Export Import Bank (EEXIN), customs services, and so on.
To identify any gaps in the council’s role in promoting non-oil exports in Nigeria.
To provide ideas and recommendations for improving the Nigeria Export Promotion Council’s activities in meeting the country’s export promotion targets.
RESEARCH QUESTIONS:
To approach the problem attentively, the following question has been formulated:
1. What is the Nigerian Export Promotion Council’s (NEPC) role in export promotion in Nigeria?
2. How far has the Nigerian Export Promotion Council (NEPC) progressed in its leadership role in export promotion in Nigeria?
3. Are there any non-oil export promotion constraints?
4. What are the answers to these difficulties, and how can the Nigerian Export Promotion Council (NEPC) consolidate its achievements?
Significance of the Study
Export promotion is a service; in Nigeria, it remains primarily a government endeavour, hence it is non-profit. As a result, the Nigerian Export Promotion Council (NEPC) and other government-sponsored export-related organisations are all non-profit organisations.
On the other hand, there is a long-standing belief that non-profit organisations are largely inefficient. In recent times, however, this assumption has been debunked, as even non-profit organisations are given targets to meet.
This study thus seeks to confirm that, despite its status as a non-profit service organisation, the Nigerian Export Promotion Council continues to strive to meet its statutory responsibilities,
which will benefit all stakeholders in the country’s export business, including the federal government, existing and potential exporters, and general communities. It will also aid professors, students, and researchers studying international marketing.
Scope and Limitations of the Study
Export marketing in Nigeria, like in the rest of the globe, is a shared responsibility. It is created and executed concurrently by several organisations and enterprises. These include government entities specially established for that purpose, as well as accounting firms, banks, and so on.
However, for the purposes of this study, the primary focus will be on the activities of the Nigerian Export Promotion Council (government agency), the country’s major export promotion organ, with some restricted references to other government operators, particularly where there is an interrelationship.
Similarly, the actions of NEPC’s Enugu Zonal Office will be discussed in depth. Other zonal offices will not be evaluated because zones and headquarters serve the same purpose across the country. Less well-known organisations will only be addressed briefly as necessary.
Several issues were encountered while doing this investigation. Such issues include a scarcity of published studies and accurate data on export promotion and development, which is the subject of the study.
In addition, the researchers lacked both funds and time to efficiently obtain all of the essential data from all conceivable sources. Equally constraining was the restricted and cautious stance by exporters in objectively evaluating export promotion programmes due to their fear of the unknown.
Finally, several NEPC staff interviewed were uncooperative in responding to queries and providing office information. Despite these limits, the tenacious researchers were able to accomplish significant success in their investigation.
DEFINITION OF TERMS USED IN THE STUDY
EXPORT: Sending commodities to another country.
EXPORTERS – Individuals or firms involved in export commerce.
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