Eu plans trade programme to improve nigerias exports
In a country like Nigeria, where among scores of natural resources only one - crude oil accounts for over 90 percent of its total export trade, there is no other route to achieving a national sustainable economic growth other than to find the appropriate ways to diversify the export base. Since this paper regards every commodity exportable, emphasis on exports of non-oil products eu plans trade programme to improve nigerias exports not going to be only on the agricultural and mineral resources but in shipping products from across all economic sectors.
The article will eu plans trade programme to improve nigerias exports the prospects and challenges in sourcing and provide export markets for commodities, products specialization and job creation from export and services industrial sector. Osondu Chimezie Nworu, Export: Objective of Paper 2.
Not Only Tax 3. Ways of Improving the Economy Significantly 5. Vigorously Pursuing Export Markets 6. Conceptualizing the Economic Sectors for Export in Nigeria 7. Nigerian Cultural Exports Potential and Eu plans trade programme to improve nigerias exports 8.
Impediments to Promoting a Diversified Export Base Export as an Instrument for Economic and Development Growth Guides to Exporting Products or Services Introduction Since the end of the oil boom inNigerian had never achieved an economy growth rate in past 36 years; the economy has been suffering an unprecedented state of economic moribund till the present state of recession.
The government and the people have been incapable of managing the abundant resources to achieve what many countries with far fewer resources have achieved in the same period. Who could believe that in s to 80s it was much easier and costs less to have a landline telephone in Nigeria than in Italy and presently it is nowhere compatible to Italy in telecommunications?
The Ministry of Mines and Steel Development MMSDidentified thirty-four types of minerals of high commercial value across the nation of which not even one contributes significantly to the revenue. The reason is that eu plans trade programme to improve nigerias exports various succeeding governments refused to develop and harness these sources of wealth for the income and all they did either to abandon existing activities like ADA Palm Oil Plantation abandoned for many years, handle to artisans or the regime's cohorts.
Nigeria has a very peculiar different vegetation zone, from the humid rain forest vegetation belt in the south to the drier savanna in the north. The success of the regional governments in agricultural export was mainly due to economic survival than revenue and economic growth development planning as they were forced to maintain the pre-colonial practice of trading in agricultural commodities for economic prosperity and to grow the revenue.
For if crude oil export wealth was flooding the revenue then, they could have abandoned harnessing exportable agricultural products like their military successors. In Africa, Nigeria has the largest stocks of human resources for health, civil service, education technology, the administration even in production like finance, etc.
The surplus in quantity and quality of human and natural resources, the right knowledge, experience, techniques and vocational skills are capable of leading the nation to an exceptional sustainable economic development advancement to benefit the masses. The paradox is that with such large stocks of human resources which could have been useful for the country, but the migration to foreign countries in the recent years has caused under production and inequitable distribution of workforce.
Irrespective of surplus resources, in health, civil service, education, technology, production and every other human resource, the capacity to possess and maintain the right quantity and quality of staff with the right knowledge, techniques and skill has been elusive because of the migration and lack of sense of nationalism among Nigerians.
Without the right frame of mind and attitude among all Nigerians to contribute optimally eu plans trade programme to improve nigerias exports national goals and objectives, no matter the quantity of human and natural resources God eu plans trade programme to improve nigerias exports endowed it the economic diversification and revenue expansion will remain a eu plans trade programme to improve nigerias exports dream.
Nigerian should be alarmed of the present recession as whatsoever begins in Nigeria becomes endemic like corruption, arm robbery, petroleum subsidy and Nigeria's power problem. The government should do everything in its power to see that the economy is diversified and every human and natural resource contributes significantly to increase the revenue. Objective of Paper Some experts think that the recovery from the present economic recession can come from rigorously taxing all enterprises to raise fiscal revenue; the paper shall highlight how a comprehensive export industrial development policy can improve the business environment to boost a diversified economy and the required export base.
The paper will further highlight the significant challenges that are preventing the non-oil exports from emerging dominant against crude oil export. Conceptualizing the Weight of Tax and Export in the Government Revenue Nigerian revenue is a mixture of oil export and taxes, but because of income from oil, the government also neglected cash flow from tax and non-oil export commodities.
The government has now realized the importance of the two sources to the treasure, and as such, should commit more to diversifying the non-oil export base. Export Impacts More Than Tax on the Revenue The oil-dependence economy, endemic mismanagement and wrong economic reforms of the past decades have kept the country away from achieving any meaningful economic development.
The falling oil prices are the primary cause of the present recession, which will lead to improvement in the economy. The National Tax Policy had only been structured to produce a tax system that grows internally generated revenue by exercising its powers and pressures on taxpayers who suffer multiple taxations by all tiers of government and bear a higher tax burden especially on SSBs very evident in Lagos state.
All the state governments use archaic laws and unskilled workforce to aggressively and unorthodoxly collect taxes from taxpayers by delegating the duty of revenue officials to third parties, only to accentuate corruption that causes lack of accountability of the amount gathered. Not Only Tax The immediate drop in oil prices should become a clarion call for random investments and participation in the agriculture, manufacturing, mineral resources sectors including crude oil and gas industry like in any nation that earnestly seeks to solve its economic woes borne from many years of reliance eu plans trade programme to improve nigerias exports oil revenue.
Adding that it takes less time, effort and cost to improve tax collection than to implement other long-term development plans such as agricultural reformation, construction of refineries that are expected to contribute to the revenue, Obinna, In as much it is evident that the government should strengthen the tax system, export remains the only formidable instrument for the stabilizing the economy because Nigeria must stop relying on oil revenue and diversify all the sectors of the economy, to let the country free of all its Dutch disease.
Exporting Enables the Economic Growth and Revenue Increase Since the past governments did not invest the oil resources in areas that will be viable, Nigeria could hardly be able to survive without oil Ohazurike, As such Nigeria's only hope to end the current devastating but reversible economic doom, sustain the economy and increase the earning base is to use export competitiveness as an instrument of recovery for the economy, productivity, manufacturing, and employment. As a matter of fact, activities at the wharfs is comatose even workers are calling the Wharfs "empty football fields.
A major stakeholder the Central Bank of Nigeria that is to manage the economy for the public is much distracted with Dasukigate and the recruitment scandal, not to mention the failure of forex policy by its politicized monetary and exchange rate decisions and its dire impact on the Nigerian economy and the public loss of confidence. These policies have bred nothing but corrupt arbitrage practices and unemployment, as factories and businesses are unable to access forex and shed jobs with declining productivity Fayemiwo, The significant role export can play in supporting the overall health of the economy eu plans trade programme to improve nigerias exports be quantified, every stakeholder including CBN should adopt the appropriate trading strategies that tend to pursue sustainable economic growth and market-oriented reforms derived from well-researched export development programs to stimulate export.
Categorically, should the stakeholders focus on expanding the export base it shall lead to economic recovery and avert present severe recession; as businesses will undoubtedly position themselves to take advantage of opportunities created through strategic thinking and planning. The economy was thus diversifying and becoming more services-oriented, in particular through retail and wholesale trade, real estate, information and communication AEO, Though the above facts were due to few individual efforts, Nigeria's export still revolves around the oil industry, after the economic reforms of ; the government has not made any concrete efforts to diversify its export eu plans trade programme to improve nigerias exports beyond the oil sector.
The present economic situation has taught the nation that the economic diversification has to be broad based to include the following sectors: A typical broad base economic diversification can be that of Malaysia, a middle-income and oil producing country like Nigeria, has transformed itself since the s from a producer of raw materials into an emerging multi-sector economy through a diversified export economy. This economic policy has led the Malaysia central bank Negara to maintain healthy foreign exchange reserves and a well-developed regulatory regime that has limited Malaysia's exposure to riskier financial instruments and the global financial crisis Malaysia,which the Nigerian CBN had not been able to achieve in its six decades of existence.
Vigorously Pursuing Export Markets Seen, the struggling Nigerian economy, the nation has no choice other than to diversify the economy and spur technological innovation to avoid foreign exchange crunch since the country cannot sustain itself anymore by only revenue derived from oil.
The country needs to find long-lasting solutions since the oil revenue is dwindling as the population is ever increasing. The multiplier effect can materialize by truncating the NNPC monopoly and liberalizing the sector which will attract rapid infrastructural developments and investments thereby providing entrepreneurial and job generating opportunities.
Furthermore, Nigeria has to adopt a comprehensive national economic plan that must designate export as its bedrock to pilot the country into a sustainable economic growth without which it will not attain the much-sought industrialization the like many Asian nations had through export. Because of the abundant natural resources, God has endowed Nigeria with; the essence of the economic plan should be to convey the human capital towards channeled productive goals that would set the pace for the industrialization of the country much hindered by diffused mismanagements and corruption.
Evidently, the present administration is struggling to better the nation through the process of fight against financial crime; yet, the economy is not growing, job creation and poverty alleviations are absent. Even the World Bank has confirmed that it was harder to do business in the President Buhari's reign started than it was in Kaushik Basu, of the World Bank, lamented that modern economies cannot function without regulations, and businesses cannot come to a standstill through inadequate and cumbersome regulations.
Therefore, there is a need to expand the government revenue eu plans trade programme to improve nigerias exports export of mineral resources, raw materials, agricultural products, manufactured and processed goods electric power supply permitting.
Available data revealed that the solid metal and manufacturing sub-sector of the economy had never made any significant contribution to the nation's export revenue even before amalgamation as can be seen from below F. The reason is that the colonial masters neglected solid metal and manufacturing export sectors for industrial raw materials for their domestic industries.
Then, Nigeria becoming an oil-rich nation is not the only caused in decline of economic growth in all other industrial sectors. This myopic way of governing the economic development and environmental management that has persisted since independence contributed immensely to lack of both economic progress and economic diversification of the export revenue in all sectors.
Nigeria has been in this same condition since the s, as it always has performed poorly in managing its non-oil economy because of many perverse fiscal and exchange rate policies. The federal government itself has become an added source of the economic turbulence with its entire overhead budget and National Assembly excesses, coupled with volatile oil prices and oil-fueled political instability in Niger Delta.
The government is determined to earnestly tackle and solve these challenges that relate to the Dutch Disease for it is highly committed to the economic diversification of non-oil economy potential sectors for export in Nigeria. Agricultural Export Potential The people of Nigeria by nature are very keen traders and agriculturists.
Means of communication are improved continuously, and increasing quantities of produce are absorbed in good prices in British markets. Local prices, which ruled flat for some months after the outbreak of war, were at the end of the year nearly as high as before the war, and German trade is now in the hands of British merchants Lugard, The colonial power was the first to recognize the potential sector for export in Nigeria and did all that is required to sustain the industry by harnessing and maximizing produce for the benefit of its Britain homeland.
As early, as a steam trawler was sent to Lagos by an English syndicate to supply affordable deep-water fish and plantations of rubber, cocoa, kola, oil and coconut palms were flourishing.
The Eastern Railway and other rail lines constructed to reach the different parts of the two provinces as recognition of the importance of export potential of the agricultural and fishery sector. The loss of such huge amount of revenue is a good example of the result of the Nigerian-Dutch disease which is very prominent in agriculture and fishery.
The oil spillage among others has prevented farming and fishing in the region where they matter most Niger Delta, and the magnitude of the economic, environmental and human-associated hazards are such that it shall take up 30 years to see fresh and clean environment to farm and fish according to United Nations Environment Program, UNEP. There is the question of non-investment in the sector; however, shortly, the few states and individuals who have started investing in agriculture shall soon reap the benefit of export.
Solid Mineral Export Potential This sector requires significant considerations for Nigerians have never realized the prospect of the mineral resources export sector which is still at the colonial stage.
Since independence, the solid mineral sub-sector has never contributed eu plans trade programme to improve nigerias exports to the Nigerian economy neither had its impact on the GDP nor its foreign exchange earnings to the revenue been significant.
Among the top export products of Nigeria, not eu plans trade programme to improve nigerias exports single solid mineral is mentioned portraying eu plans trade programme to improve nigerias exports myopic spiritual nature of the government's economic experts that had rendered this sector the most neglected of the economy.
Nigeria has various kinds of mineral resources even the ad-hoc ministry has identified 34 types to develop and promote for export from a list of 40 defined by NEITI, even though the solid minerals and precious metals are widely spread across the nation and are in sufficient commercial quantities to earn foreign exchange profusely. Though the paper has highlighted the slow development of the sector, the major factor is the ambiguous mining legislations in the country and the selfish and doggy management of the export sector by the governments through the godfathers who have the monopoly operating with impunity irrespective that Nigeria is in EITI.
That is the reason, 44 identified minerals of commercial production notably gold, iron ore; bitumen, etc. Some reports show that over 7. The government and its economic team should recuperate for the revenue the massive mineral deposits and hundreds of trillions of dollars of their commercial value lost to the treasure yearly; the sector needs a new legislation that would encourage investors in the exploitation of these resources and liberalize the export of the resources. In reality many local and foreign investors have the interest in the Nigerian manufacturing businesses like electronics, chemicals, vehicles, wood, and food, etc.
Many past Nigeria governments have shown willingness to promote and support the growth in the manufacturing sector, but the irreparable damages caused by past inappropriate government policies and over-reliance on oil for income as such the solutions lies in the economic diversification and reforming the indigenization decree. In the present Nigerian circumstances, manufacturing sector can still have high export potential because of the huge internal population and the neighboring countries that depend on of on the little productions from Nigeria for their sustenance, and good examples are Aba and Lagos manufacturing industries that flourish because of the neighboring countries.
Fortunately, at least some multinational companies are still operating and surviving in Nigeria, because of their high financial muzzle and unlike their local counterpart they employ skilled labor coupled with their productivity which most of the time are potential for export example Nigerian Bottling Company Plc, GUINNESS Nigeria and some food stuff companies.
The textile industry was once very efficient, and sources labor intensive export in the countries, but now a comatose big font of exporting if the government could guarantee the sector adequate financial resources, management, planning and investment in production technology process with the goal to sustain export. Nigeria should also strive to get to the stage that its trade-related policies can eu plans trade programme to improve nigerias exports the competitiveness of industry within the country and stimulate quality controlled of the products so as to penetrate the international export market and at the same time be appreciated domestically.
Should this happen, all the problems and limitations that are hindering the growth of the manufacturing and services sector in the country such as poor infrastructure, lack of manufactured goods, unskilled labor, difficulty in sourcing financial resources for businesses, over-reliance on oil revenue, etc. Nigerian Cultural Exports Potential and Others Categorically, Nigerian economy has much great potential untapped and anytime the government or some individuals take the eu plans trade programme to improve nigerias exports step and act effectively by making use of the population count, natural and human resources, ambitious and hard-working nature of the people the result is eu plans trade programme to improve nigerias exports excellent.
These are what boosted the economic potentials in the telecommunications, oil and gas, energy, Church and creative sectors just to mention a few. Nigeria and Nigerians are emerging strongly in the areas as stated earlier; the gas industry is flourishing internally and internationally, Nigeria exports energy to neighboring countries irrespective of the domestic energy problems, many local churches are going global and are bringing foreign exchange into the countries.
However, it is in the creative sector that the ideal economic diversification and the most substantial revenue earning are materializing. By early 90s when Nollywood first went into a creative blaze no one could imagine it could have become one of the most dynamic economic sectors in eu plans trade programme to improve nigerias exports world, operating with some of the finest trade- related policies in Nigerian economy that are having a high significant impact on the economy and the revenue.
Nigerian cultural exports Potential are gaining global favorable Partnership arrangements and recognitions from film production to art through music to fashion.
As a catalyst export trading will serve well Eu plans trade programme to improve nigerias exports so richly blessed with all kinds of natural resources, which till date have had no impact on the people lives. Nigeria has all it needs to manage her enormous human and natural resources so as to create wealth, employment, improve the economy and still be a force in global market and technology by being export oriented.