1.1 GENERAL BACKGROUND TO THE SUBJECT MATTER
The President of Manufacturing Association of Nigeria, Rufus Giwo (2000: p.16) defined industry thus: “Industry, particularly, manufacturing, is the motive force for development. In fact industrialization is more than engine of growth. It is also the catalyst for technological, financial and socio-economical advancement”.
Trade, and more specifically foreign trade have astronomically been instrumental in man’s bids towards betterment of his life on earth. Today, we can enjoy and make use of automobiles made in far away Japan as if they grow in our gardens. Other artier as which we cannot dream of producing even in the next millennium liters our markets as if they were going out of fashion. All these are courtesy of foreign trade and broadly on one of its two-pronged division; “importation”. A very important concept it is, but like a two-edged sword. It can destroy if not carefully handled.
A study on how foreign products crowd our market, and how our local industries are wise-divine into oblivion show that we are already receiving a fair dose of rough handing under the sharp clones of this excessive importation.
“The Nigeria trade journal” of March/April 1980, analyzing our trade statistics put the local of beer and stout importation at N7,562,315 people shouted and rose dust over it that it is excessive, but what have we to say today that people zoom off from the country just to import too the picks and toilet tissues?
The millions of graduates that our academic institutions turn out annually have their faith hanging over the balances with hands supporting their cheeks and all hope on divine intervention. They helplessly watch as our few industries fold up in their hundreds.
Retrenchment and counter retrenchment of workers have become so common at the few existing ones battle to break even and remain in contentious. Consequently, unemployment and poor standard of living cannot be more adventurous.
An idle man they said is the devils tool. Coupling with the fact that both ends must meet arm-robbery. Corruption and other social vices exert dominion. Hence our country cannot help winning the inglorious “most corrupt country” award in the year 2000.
Our surviving industries virtually are out of their teller judging from the lamentable figures they post in their annual report as profit after exorbitant tax from a government that don’t spare their selves a thought about their welfare. Instead of re-investment or expansion, the little taken that will succeed in dropping into their coffer went into unreasonable advisement, which they see as their last resort to remain in contention in the ever-growing competitive market.
These and many more have been the plight of our indigenous industries. Consequent upon excessive importation this work tries to look into the effect of this practice and how to curtail its excesses. It will make a steep further to put forward measure towards revamping the vandalized state of our indigenous industries.
1.2 PROBLEMS ASSOCIATED WITH THE SUBJECT MATTER
The subject matter is that which have a hamper of problems under its care. Below are some of them:
1. DEPENSSION AND DUMPING
With more and more goods from abroad finding their ways undisturbed and unrestrained into the constitution where supply will exceed demand will emerge. And not only will our noble economy and indigenous industries suffer a great depression, but also the nation will be turned into in dumping ground.
2. EXCESSIVE COMETITION
Our weak industries became so much endangered by the menace of their vibrant foreign counterparts much of the market share from day to day fell to these foreign goods.
And to fight back in their own effeminate way in order to still remain in contention our indigenous industries resort to aggressive promotion which drain their meager income and adversely effect their level of operation
With a generous portion of the market under the control of these foreign goods, and depression the lot of our indigenous industries, mass retrenchment of workers becomes inevitable. Our graduates will then, day in and day out continue parading the streets with their files in search of work that never exists.
4. FOLDING UP/EXTINCTION
The heart breaking stage of it all is that after so many years of struggling with their Herculean foreign opponents, majority of these indigenous industries inevitably and up kissing the dust of bankruptcy and liquidation.
5. BLEAK FUTURES FOR INDUSTRIALIZATION
The subject matter even posed a sinister signal to our country’s dream towards industrializing the economy. Judging this, who will wish to invest in the industrial sector while the government will just fold their hands and watch indifferently as foreign goods fly as free as weaver bird in and of the country’s boundary.
How will the dream be realized while the meager number of industry already in existence keep on dwindling geometrically? With such a situation, the dream of the nation towards this end will end up as a mere mirage, and our country will perpetually remain a dependent and parasitic country where foreigners will for eternity rely on as a fertile ground for marketing their wares.
1.3 PROBLEMS THAT THE STUDY WILL BE CONCERND WITH
i. The study will occupy itself with how to systematically x-ray the rate of harms that will be the luck of our country and their industries with the continuous imperialism of this ugly practice under these marquees.
ii. To identify the magnitude of damage which our indigenous industries have been subjected to, due to excessive importation.
iii. To inculcate in the mind of our countrymen the need for them to have faith in our local products and pipe low at the rate by which they scramble over foreign goods.
iv. To ensure that the excessive importation goods are controlled.
1.4 IMPORTANCE OF STUDYING THE AREA
The inspiration and zest of living this project work was drawn from the alarming rate of importation, and our county’s obsession for imported goods, which our local industries are at the receiving end of.
This study will facilitate in no small measure the drastic reduction if not completely, the fearful rate of importation in the country and the much inclination of the people of our dear country to foreign goods.
The problem of unemployment, with the increment in the operational level of our industries will be curbed. Retrenched workers will have smiles dotting their once desperate faces. And our graduates will have their ambition of contributing their quota towards the development of our country fulfilled. With such a development, more industries will be established, people will have more places to invest, standard of living will be enhanced, and our poor economy will be rejuvenated.
1.5 DEFINITION OF IMPORTANT TERMS
Before we delve deeper into this study, let us try to illuminate some terms and words that will keep on occurring in the course of this study.
IMPORTATION: This is the act of bringing or causing any goods to be brought into a country’s territory. It can also be seen as a branch of foreign trade, which deals on procurement of goods into a country. These goods in question, under normal circumstances suppose to be under the import quota’s stipulation and actual requirement of the country.
EXCESSIVE ON Importation can be said to be unbridled or excessive
UNBRIDDLED when the import quota as stipulated by the
IMPORTATION: government are being violated or not adhered to. It can also mean when emphasis on importation is not strongly laid on what a country actually can’t produce or their basic necessities.
IMPORT QUOTAS: This is quantitative to a specific produce during a given period.
INDUSTRY: This refers to the coming together of firms producing similar goods or is engaged in the same line of operation. It can be said to involve the transformation of materials from original states to new forms. Also, it may refer to a group of firms producing different parts of a product.
FIRM: This is an economic mind of an organization involved in a definite production process.
INDUSTRIA - This can be said to be synonymous with technology.
LIZATION: And technologyrefer to those tool and machine used in the production of both capital and consumer goods.
AMAHALU, A.C. (1997): Basic Economics For Schools and Colleges,
Enugu, Mekan and Publication.
GIWA RUFUS”: Nigerian Industrial Sector. An Overview” Daily Times,
Vol.8, No.3, March 16 2000, p.16
NWOGU IJEOMA (1999): Importation of Goods and Services in Nigeria:
Its Impact on the Economy, I.M.T Enugu,
TRADE STATISTICS”: The Nigerial Trade Journal, Vol.27, No.2,
OZOCHI CHIDI (2OOO): Economics. A Simplified Approach, ENUGU
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