Impact Of Smuggling On Our Local Industries

Project and Seminar material for Public Administration

Project and Seminar material for Public Administration

Chapter One


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.


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


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.

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