The Impact Of Trade Fair On The Development Of The Nigerian Economy

Project and Seminar Material for Business Administration and Management BAM

Abstract

The research on “The Impact of Kaduna international trade fair on the development on Nigerian economy” under taken to ascertain the Impact of the Kaduna trade fair on the economy of Nigeria, however, the aims or objectives of the research is to find out: what effect does Kaduna trade fair have on Nigerian economy. Among the research instruments used was secondary data and personal observation which was analyzed. Based on the arithmetic means population, it was discovered from the data analyzed that trade fair have effect on Nigerian economy however not notably due to issues such as insecurities which discourages foreign participants. In conclusion, the researcher recommended that Kaduna international trade fair will contribute to the Nigerian economy when the security issues are given appropriate attention thus promoting foreign participation.

Chapter One

Introduction

1.1 Background of the Study

In any economy, the impact of trade fair cannot be over emphasized as it play a vital role in the overall economic, social and industrial development of a nation economy. Trade fair is a periodic gathering of manufactures and producers of goods and service exhibiting their latest products for promotional and sale purposes, but it has been hijacked by Nigeria wholesale and retailers and turned into a show of already exhibiting goods for their selfish aim of selling at an exorbitant price and making as much profit as they could.

Trade fair is one of the most effective and efficient atmospheres and avenues for increasing brand awareness and also the introduction of a new product in the market (AUMA, 2013). It is a very relevant asset for generating international trade through the exchange of goods and services. It increase employment opportunities and encourages manufacturers to compete fervently for market shares. In fact, the impact of trade fair to a nation’s economy is colossal. “other objectives of trade fair participations include improving the image of companies and products, opening up new markets, market research as well as concluding business deals. Aims that reach beyond those of day-to-day business are becoming increasingly important, such as establishing new sales channels, looking for venture partners and securing new employees.” (AUMA, 2013). Organizing trade fair to expose goods and services offered by manufacturers and members of the intermediaries otherwise known as the middlemen has become very germane (Omowunmi, 1999). Trade fair is a form of promotional device (Omowunmi, 1999) that enables companies to showcase and demonstrate their products to both middlemen and ultimate consumers.

According to Ebue, (2002) trade fair is an excellent means of surmounting communication barriers through demonstrations. Trade fairs are method of bringing buyers and sellers together under mutually (equal) benefit, while exhibition and books are featured at trade firs which are designed to attract immediate prospect and to create awareness. A trade fair (trade show, trade exhibition) is an exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products, service, study activities of rivals and examine recent market trends and opportunities. In contrast to consumer fairs, only some trade fairs are open to the public, while others can only be attended by company representatives (members of the trade, e.g. professionals) and members of the press (Nwielaghi and Ogwo, 2013). People participation in trade fairs have the privilege to physically examine, make comparison and learn about new products, market movement, competition and new source.

Kaduna as well as the other states of Nigeria are blessed with basic natural resource and intellectually that can make any geographical unit great. But however it is very unfortunate that most of these resources and intellects are yet to be harnessed and utilized. As much that trade fair show should come to play it should be a show that could identify, help to tap and develop these resources to mark an enviable and cohesive economy. The researcher is therefore out to find out how Kaduna international trade fair has affected the economy of Nigeria.

1.2 Historical Background of Kaduna International Trade Fair

Kaduna international trade fair is the most important annual events in the calendar of Kaduna chamber of commerce and industry, the events which was first of it kind started as domestic fair emphasing on agricultural sector in 1974 on a biannual basis the event continued until 1978 respectively in1979 the trade became internationally organized on annual basis, the firs Kaduna international trade fair was held in February 1979 at Murtala Mohammed square where a total of 205 exhibitors participated, from that period, the event continued to grow bigger providing avenue for:

The provision and encouragement of development of industries and industrial inputs.
The promotion of all aspects of economic sectors through national and international co-operation
The provision of access to research finding new technologies and ideas for actualization by industrialist and policy in when is through face to face interaction.
The creation of conducive atmosphere between Nigeria and other nation for joint venture project in all facet of the economy.
The provision of channel through which the government policies and programmes are made know and consequently attract international and local investors.

1.3 Statement of the Problem

the Kaduna trade fair, both domestic and the international trade fair are about thirty eight years old today with the Kaduna international trade fair celebrating 34th years anniversary last march 2008.

As old as it seems to be, Kaduna trade fair is embedded with the following problems

The inability of the organizers to enlighten other state of the federation to participate in the fair so as to show case their potentialities.
The inability of Kaduna trade fair to encourage the exhibition of new products and technology, is not different from what is obtainable in the central market.
The organizers have failed to educate the manufacturing and producing firms on the value and benefit associated with these fair.

1.4 Objective of the Study

The objective of this research will be to find out the followings

To examine the impact of Kaduna international trade fair on the Nigerian economy
To find out whether Kaduna trade fair have succeded in creating on avenue for the introduction of new products into the market
To ascertain whether Nigeria small and medium scale enterprises have been participating at the Kaduna international trade fair.

1.5 Significance of the Study

The research work if successfully concluded will be relevant to the following group.

a. Manufacturing and producers of goods and services,

It is important to this group because it will enlighten them on how to take advantage of trade fair shows in Nigeria by exhibiting what they have in stock, their creativity and innovation in other to attract both local and foreign investors whom may want to invest in them, convincing them and of course it will lead to a boost in the economic development.

b. The State

This research work will also be important to the state because it will educate them on how to show case their abundant resources to attract foreign investors.

c. The Researcher

The research will broadened the knowledge of the researcher on the trade fair and its impact on the Nigeria economy

The Trade Fair Organizers

The research will be important to the organizers because it will make them to realize that their duty is not only to provide exhibition space, lay down rules of the show and provide security, but are equally responsible for organizing work shops, seminars e.t.c. to both state and other exhibitors on what trade fair is all about and how to go about it if it must contribute any value to the economy of Nigeria.

1.6 Research Questions

Has there been any impact of Kaduna international trade fair on the development of Nigeria economy?
To what extant has Kaduna international trade fair create an avenue for the introduction and exhibition of new products?
Has Nigeria small and medium scale enterprises benefit in their participation at the fair?

1.7 Scope of the Study

The research topic” the impact of Kaduna international trade fair on the development of the Nigeria economy” will focus more on the years 2002 to 2010 it is for data and information generation, Also the research will focus more on trade fair and other relevant and related subjects.

1.8 Limitation of the Study

The researcher encountered some problem during the conduct of the research, below are some of the problems.

a. Lack of co-operation from the respondents:

Some of the respondents were not ready or willing to respond as expected, this they do by asking the researcher to call back some other time, some pay little attention while others delay the filling of the questionnaire

b. Financial constraint:

Due to the economic situation in the country, financial support and so on the researcher was faced with the problem and lack of enough educational materials, transportation like and other inputs needed to carry out the research work, this went a long way in affecting the research will.

1.9 Definition of Terms

Trade fair:

Is exhibition of manufacturers produced and occasion when manufacturers and producers of goods exhibits their products are take to potential customers.

Manufacturers:

They are producer of goods, is factory person or organization that produce finished goods, from raw material.

Wholesaler:

A wholesaler may be defined as the trade who buys, goods in large quality to the retailer, the wholesaler is also called the middleman because he is in between the manufacture and the retailer.

Economy:

Is the realized economic system of a country on other area, it includes the production, exchange, distribution and consumption of goods and services of that area.

Development:

Means provision of infrastructures and increase in per capital income or group. It is the improvement of product techniques, level of output and the general welfare of the people.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary

The evolution of Trade Fairs can be seen as a concept that is modern. Trade fair are being organized by industrialized nations in order to display and advertise their modern and sophisticated technological discoveries while the industrial Nations Stage Trade Fair to show off their potentials and display their own studies and attempts at technological break through.

The Kaduna International Trade Fairs had been held over a period of 18 years. Between 1979 and 1983 the fair has attracted more Foreign participants with the highest attendance of about 200 Foreign Companies in 1982. This could easily be explained perhaps due to the democratic government in place at that time. When the Military took over power in 1984 the number of Foreign participant in 1984 the number of Foreign participants dwindle until it reached an all low figure of 13 Foreign Participants in 1995. This particularly affected the success of the Kaduna International Trade Fair in bringing about a meaningful impact in the economic development of the country because it could not provide the appropriate avenue for local entrepreneur to exchange business ideas and make contacts with their Foreign counterparts. The Hostilities of the Western Countries towards the country due to the political instability of the country ultimately made many countries to shy away from participating in our Trade Fairs and thereby denying the country the Foreign capital Investment necessary for any sustainable economic development.

5.2 Conclusion

International Trade Fairs in Nigeria cannot by any stretch of imagination be regarded as instruments for industrial and economic development Although the Kaduna international trade fair has been annually held since its inception from 1976 to date it has become more like trading outpost for all manner of people to just display their wares at the end of which a huge profit is declared and that all. The original idea of encouraging the exchange of business ideas as well as an avenue for channeling information on new business opportunities and material resources to productive sectors for economic development become lost in a barrage of mediocrity with passage of time.

From a casual observation of what transpires of our trade fair grounds, it is clear that most of the sales made relate to common consumer goods which are usually sold with some marginal reduction in prices. The public are thus attracted to purchase luxury goods which our industries may not be able to produce nor our economy sustain.Also most of the products normally exhibited at the trade fairs are either completely made outside the country or at best, just assembled in the country, involving little, if any, transfer of technology without which real industrialization and economic development could be achieved at the next International Trade Fair.

:…. A part from simple consumer items like snacks, baby lotions and local textiles fabrics virtually every worthy exhibit at the trade fair was imported either in knocked down form or even fully built”.

The Ministry further noted that most of our local industrialist tended to turn trade fairs into a market of buying and selling perishable goods and services. In effect therefore our own trade fairs simply promote the industrial growth of other countries who participate at the fairs.

5.3 Recommendation:

Trade fairs can indeed bring enormous advantages to a country and thereby accelerate its economic development. But virtually all our industries depend on Foreign importation of their machineries and spare parts as well as their raw material inputs. A sitution where even the more established manufacturing companies are operating far below their installed capacity, the country cannot seriously expect new industries to be established

In light of the above I recommend the following;

Government should ensure that all factors of production that are necessary for reactivating existing dormant industries and establishing new ones in various sectors are put in place.
Government should set standards for participating in our trade fairs so that participants are chosen more carefully in order to avoid collaborations or even investments in unproductive or premature sectors of the economy. This will also ensure that trade fairs mobilises our own industrialisation and not that of other countries by creating demands for non productive and luxury products.
The chambers of commerce responsible for organising trade fairs in the country should publish the details of business transactions in various fields and the enquiries made during the trade fairs. This will serve as feed back to the government for either strengthening the policies already adopted or modifying them to suit the trends exhibited at the trade fair This will also form a data base for researchers to observe and analyse and access the impact of the trade fairs on the country’s economic development
Local manufacturing companies in the country should establish Research and Development (R & D) units in their organisation in order to explore opportunities for technological break through.
Local companies engaged in manufacturing for expert should put in place effective policy and plans for quality assurance in their production process so as to ensure effective competitiveness in the exnort market.
Nigerian Banks should also establish branches in other African Countries so as to facilitate easy access of funds and advisory services to Nigerian exporters in such countries. This is also in line with the African Economic integration.
Government should evolve an appropriate industrial policy and ensure proper implementation by the various chambers of commerce which are running the International Trade Fairs. It is recommended that the Federal Ministry of Trade and Tourism should act as a central body and ensures that the collaboration agreements and possible plans for starting an industry in a vital sector initiated at the trade fairs are vetted and given proper follow up.

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Frequently Asked Questions

What are the negative impacts of international trade on Nigeria?

Some The Negative impacts include: Unemployment, As a country, Nigeria has not been able to achieve a sustainable employment through international trade , this is due to factors such as poor policy, corruption, which has been a lasting problem to sustainable employment .

How does international trade affect economic growth?

International trade has made an increasingly significant impact to economic growth. The openness of a nation determines a country’s growth rate by impacting upon the level of economic activities and facilitating the transfer of resources across borders.

What are the challenges faced by Nigeria in achieving sustainable employment?

Unemployment, As a country, Nigeria has not been able to achieve a sustainable employment through international trade , this is due to factors such as poor policy, corruption, which has been a lasting problem to sustainable employment .

What happened to Nigeria’s agricultural exports?

In 1960s, agriculture happened to be one of the main stay of the economy and the greatest foreign exchange earner. But since the advent of oil as a major source of foreign exchange earning in Nigeria in 1974, the picture has almost become that of general stagnation in agricultural exports.

How does foreign trade affect Nigeria’s economy?

In conclusion, In as much as Nigeria has benefited from foreign trade, it has also felt a negative impact of foreign trade on her economy and this is because of the fact that, Nigeria is not industrialized, hence Nigeria imports much more than it exports.

What is the impact of international trade on the global economy?

Its impact on the growth and development of countries has increased considerably over the years and has significantly contributed to the advancement of the world economy. The impact of foreign economy and facilitating of international capital flow. Trade enhances the efficient production of goods and

Is international trade an engine of growth for Nigeria?

International trade has been an “Engine of growth” for the global economy and Nigeria in particular.

What happened to Nigeria’s agricultural exports?

How is the UN in Nigeria supporting the SDGs?

The UN in Nigeria is strengthening its support through provision of technical support to the Office of the Senior Special Advisor to the President on SDGs (OSSAP-SDGs) and line Ministries in an effort to ensure that planning and budgeting for development activities in the country are within the framework of the SDGs.

What are the most difficult obstacles to sustainable technology implementation?

The most difficult obstacles to the implementation of sustainable technologies lie in the economic, social and cultural domains The post-2015 energy transformation challenge 133 Climate change-energy models, which look carefully at available and foresee- able technologies, confirm the view that technology is not the main obstacle.

What are the main obstacles to economic development?

The first obstacle (low returns) is further categorized as a problem related to: (a) inertia, as reflected in, e.g., low returns to research and development and the presence of barriers to competition; or (b) low social returns, as reflected in, e.g., infrastructure deficiencies and low human capital.

What are the challenges of sustainable cities?

Towards sustainable cities 67 informal urban settlements where dwellers typically have high transportation costs and poor-quality housing. The use of cheap fuels implies increased deforestation, pollution, health risks, energy cost and time burden. Poor people often have to spend a lot of time for travelling to purchase or gather those fuels.

What is the export value of Agriculture in Nigeria?

Agricultural export declined by about 11% from N302.2 billion in 2018 to N269.8 billion in 2019. Nigeria’s agricultural imports rose by 12.7% from N851.6 billion to N959.5 billion during the same period, the highest value ever recorded in the country.

Which countries are Nigeria’s main trade partner of agricultural products exports?

In 2021, Asia was Nigeria’s main trade partner of agricultural products exports. As of the second quarter of 2021, the export value of agricultural products to Asia amounted to 108 billion Naira. Europe was the second largest destination region of agricultural products, whose exports from Nigeria added up to approximately 39 billion Naira.

How much money does Nigeria make from export of petroleum products?

In the first quarter of 2019, Nigeria made the sum of N39.6 billion from the export of the product. The revenue generated in Q1 2019 represents a 17% increase within just one quarter.

What does the US import from Nigeria?

U.S. imports of Nigerian food and agricultural products reached $50 million in 2019 (down just 2% compared to 2018). Major U.S. imports of Nigeria-origin food and agricultural products include cocoa beans, tea and herbal products, feeds and fodders, cashew/tree nuts, spices, and seafood products.