Impact Of Smuggling On Our Local Industries

Impact Of Smuggling On Our Local Industries

Abstract

This study examines the impact of smuggling on our local industries a case study of Sunrise Flour Mill Emene, Enugu state. Smuggling has been a major challenges facing our local industries and thus retarding their growth. Research objectives and questions were formulated to guide the study of this research work. Descriptive research design was adopted and Questionnaire were distributed to the staff of Sunrise Flour Mill Emene and was collected back. The findings of the research work shows that; Smuggling is a big stone that the government need to roll out for there to be a growth in our local industries and for greater dependent of its citizen. There should less tax and more grants and loan, Electricity and good infastructure should always be made available to support the growth of our local industries and Government need to play a major role in preventing smuggling in the country by penalizing every smugglers publicly.Establishment of infant industries-targeted economic empowerment. Hence, the Nigerian government and non-governmental organizations should consciously create empowerment programs aimed at keeping the country’s local industries and supporting them by promoting their commodities and services. Regular training and retraining of anti-smuggling security agents. Smugglers are very dynamic and versatile individuals that are always creating new ways of evading anti-smuggling security agents. Therefore, regular retraining of anti-smuggling security agents in modern and novel ways of intercepting smugglers will drastically reduce smuggling in Nigerian.

Chapter One

Introduction

1.1 Background of the Study

Nigeria is one of the developing countries of the world yet at the fringe of industries development, but the huge internal market and the vast resources base both human and material are so formidable that local and foreign investors should be tumbling over each other in advancing the peace of industrial development.

At this point one may ask, what are the restraining factors? First on the list of these factors is smuggling which is going to be main research topic of this project.

One of the measure taken by General Ibrahim Babangida the former President of Nigeria and also regime of Gen. Sani Abacha to accelerate the growth of local industries is the widespread ban on importation of raw materials and certain classes of goods which was seen to be detrimental to the growth of our local industries. If must be admitted that this measure conflicts with the interest of foreign experts and home importers so it was easy to speculate that every effort would be made by them to render it nugatory. The measure was generally welcomed by, the private sector and should have assisted local industries to grow and expand, if properly enforced. However, the act of some unscrupulous men through of our local industries.

There have been reports of large scale smuggling of goods in and out of the country.

Various groups of local business men are being accused including some Orientals (Japan, Europe and China and Assists who are said to be notorious in the malpractice.

In 1995, lien. Sani Abacha and the federal government reviewed to check this hideous crime by given priority on agriculture and domestic investors. There have also been incessant calls from different government agencies that the organized private sector should join in the crusade by giving members and these swaggers in order to ride Nigeria out of this malpractice and ensure a strong and viable economic environment within which to operate.
Smuggling is not a new way of life in any part of the world. nations down through the stream of time have had on one occasion or the other need a way(s) to curb smuggling there is no nation through that can claim to have successfully curbed its entirely smugglers and their unpatriotic notorious acts. But in recent time, this act has become a regular feature of life in Nigeria and Nigerian’s in their increasing members have bee calling on the governments and citizens to do this or that to save them from this curse that can lead to a retardation of the much needed industrialization take off.

At this juncture, lets draw attention to SUNRISE FLOUR MILL EMENE, which is one of the Enugu state government established local industries established in 1983 under the defunct administration of Chief Jim Nwobodo.
The industry is solely of food processing industries with the following products line, SUNRISE Flour, SUNRISE SEMOLINA, SUNRISE WHEAT.

Unfortunately, the industry could not survive the strain of the economic depression as a result it went out of production in 1985 and reassumed production again 1992. It was later found out that SUNRISE FLOUR could not survive the flux of smuggling of flour in the market hence its inability to survival. This research work will fully treat the effect of smuggling on our local industries.

1.2 Objective Of The Study

The purpose of this study is to find out the ways of combating smuggling which is one of the major factors retarding the growth of our local industries. It is also aim of exposing the socio-economic implication of smuggling and the need to boast our local industries

1.3 Statement of Problems

One major problem militating against the growth of our local industries is smuggling of goods in and out of the country. This has prompted this research ( into finding the causes, ways of preventing it and exposing the people who engage in this act).

1. To this effect, the following problem questions would be answered in the course of doing this work.
2. To what extent is the growth of our local industries?
3. Is the average local industry able to provide the needs of Nigeria require of them.
4. If no to question 2, why can’t they provide these needs? What are the avenues open to them to accelerate their growth?
5. Can’t there be a way of preventing smuggling which is one of the factors retarding their growth?
6. Can there be argument for smuggling?
7. Which are the industries most affected by smuggling?

All these problem questions would be taken care of in this research work through efficient and effective conduct of this task by the researcher.

1.4 Importance of the Study

This research work will be of immense benefit to industries suffering from the hands of smuggling, and unfolding the socio – economic implications of smuggling, and the need to check smuggling of goods which will serve as a Catalyst in the growth of our local industries.

It will also be of help to business administrative students by giving them an insight of some economic measure widening their knowledge in economic environment of this country, and the role they could play after their career in promoting fostering the economic status of this great nation Nigeria of immense benefit, would the project be to student of related discipline and other interested scholars.

Finally other researchers can use this study as a launching pad to study into other areas of economic problems.

1.5 Scope and Limitation

For the purpose of reliability the study covered the SUNRISE FLOUR MILL EMENE as the case study
In the course of carrying out this research work, problems were encounter as usual along the line. As nothing is so easy to get these days coupled with the dynamic nature of our economy.

It should be recalled that the data collection embraced the distribution of questionnaire which is the primary source, and library research.

Firstly, the cost of collecting information, transportation and gathering data for constraints of this research work.

Secondly, some staff in some local industries were non –chalent and unable to give a detailed information on their industries because they think that it will reveal their secret.

Thirdly and final time constraints posed another limitation. The time limit for this project is not enough coupled with our examination engagements.

1.6 Definition of Terms

There is however bounds, to be terms which may be lien to the reader to destine some of them to enhance simple analytical approach to the study.

The structural Adjustment programme (SAP):

This refers to an excellent policy made in good faith by government to solve Nigerian’s long and short term economic problems. The package includes trade liberalization, devaluation of currency and privatization.

The Gross Domestic product (GDP):

This refers to the totality of the product of a nation in a given period both agricultural and industrial.

Inflation:

This is a period when there is a persistent rise in price where there is too much money in circulation chasing few goods.

Contrabands:

These are goods brought into or taken out of a country. This is a contrary to the law (trade in) goods brought in or taken out.

Foreign Investors:

Foreigners who come into Nigeria and invest their capital in the production of goods and services.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

This study examines the impact of smuggling on our local industries a case study of Sunrise Flour Mill Emene, Enugu state. Smuggling has been a major challenges facing our local industries and thus retarding their growth. Research objectives and questions were formulated to guide the study of this research work. Descriptive research design was adopted and Questionnaire were distributed to the staff of Sunrise Flour Mill Emene and was collected back. The findings of the research work shows that; Smuggling is a big stone that the government need to roll out for there to be a growth in our local industries and for greater dependent of its citizen. There should less tax and more grants and loan, Electricity and good infastructure should always be made available to support the growth of our local industries and Government need to play a major role in preventing smuggling in the country by penalizing every smugglers publicly.

5.2 Conclusion and Recommendation

Smuggling of different items regularly occurs in on the Nigerian even before independence in 1960. Smuggling of commodity sharply increased on Nigerian between 2006 and 2016 mainly due to the country’s high unemployment rate, endemic poverty, financial greed of some individuals, economic hardship, detrimental government policies, and love for foreign goods. Between 2006 and 2016, economic sabotage of local industries, threat to food security, revenue loss, and health hazard were negative ways in which smuggling has affected Nigeria’s economic development. Many measures were introduced by the Nigerian government to reduce the menace of smuggling but the efforts were largely ineffective against the smugglers because the government lacks the political will to enforce anti-smuggling rules. Smuggling is a universal phenomenon that cannot be totally eradicated, but it can be reduced to a bearable level that would not pose a serious challenge on both economy and security of a nation.

The following measures are thus recommended:

Establishment of infant industries-targeted economic empowerment. Hence, the Nigerian government and non-governmental organizations should consciously create empowerment programs aimed at keeping the country’s local industries and supporting them by promoting their commodities and services.

Regular training and retraining of anti-smuggling security agents. Smugglers are very dynamic and versatile individuals that are always creating new ways of evading anti-smuggling security agents. Therefore, regular retraining of anti-smuggling security agents in modern and novel ways of intercepting smugglers will drastically reduce smuggling in Nigeria.

Equipping anti-smuggling security agents regularly with modern equipment.. Only with the most sophisticated equipment like scanners, radars, camera-mounted drones, lie detectors, among others would an anti-smuggling agency apprehend smugglers and thereby reduce smuggling in Nigeria.

Increased public enlightenment and orientation. The government through National Orientation Agency, religious groups, social organisations and non-governmental organisations should embark on vigorous and ceaseless public enlightenment and orientation activities against smuggling as a practice and smugglers as persons in both traditional media and social media. This will help the populace to understand the threat that seacoast smuggling pose on national security and economic development and this will in turn lead to the reduction of seacoast smuggling in the country.

Unbridled information sharing among anti-smuggling agencies. To effectively combat smuggling, information about smuggling and smugglers should be freely shared among anti-smuggling security agencies. The unwholesome practice of one security agency hiding and hoarding information about smuggling or smugglers on Nigerian from other security agencies (as mentioned by some of the interviewed officer of Nigeria Customs Service, NCS) hoarding of information can only serve to benefit the smugglers in the long run therefore unbridled information sharing will go a long way to reduce smuggling in Nigeria.

Increased intelligence by anti-smuggling security agencies. All maritime smuggling on Nigerian seacoasts are perpetrated by smugglers who are human beings that live on land. Therefore, land-based intelligence activities by antismuggling security agencies in Nigeria will help to further reduce the menace of seacoast smuggling in Nigeria.

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