The Strategic Optimization And Exportation Of Locally Manufactured Products In Nigeria

Project and Seminar Material for Marketing

The Strategic Optimization And Exportation Of Locally Manufactured Products In Nigeria


The purpose of the work is to optimize exports of non oil products with particular emphasis on exportation of locally manufactured products. In the course of this research, problems and prospects of exportation of locally manufactured products in Nigeria were fully examined and their projected impact on the national economy highlighted.

The revelation from this research study have actually pointed to the fact that export marketing of locally manufactured products is a sure way of enhancing socio – economics development of the nation.

It is pertinent to say that the research study highlighted the difficulties exporters go through in selling their products abroad as well as procuring cheap funds for facilitation of their transactions

Non oil exports especially the locally manufactured products holds much promises for the future development of the country. The magic ingredient being the revenue from exports. The importance cannot be over – emphases.

Table of Contents

  • Title Page
  • Title page
  • Declaration
  • Dedication
  • Acknowledgment
  • Abstract
  • Table of content

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problem
  • 1.3 Objective of the study
  • 1.4 Significance of the study
  • 1.5 Research Question
  • 1.6 Research Hypothesis
  • 1.7 Research Methodology
  • 1.8 Scope and Limitation of work
  • 1.10 Operational Definition of Terms

Chapter Two

Literature Review

  • 2.0 Introduction
  • 2.1 Meaning of Strategy and strategic Sector
  • 2.2 Literature Review
  • 2.3 Conceptual and Theoretical Framework Doctrine of Economic Liberation
  • 2.4 Export pricing and payment
  • 2.5 Relevance of promotion in Export Marketing
  • 2.6 Export Institutions
  • 2.7 Export Overview
  • 2.8 Basic Export Information
  • 2.9 Export Products Policy and Planning
  • 2.10 The Export Market
  • 2.11 Export Incentives
  • 2.12 History of Nigeria Export
  • References

Chapter Three

3.0 Research Methodology

  • 3.1 Nature of Research Method
  • 3.2 Research Design

Chapter Four

4.0 Data Analysis and Interpretation

  • 4.1 Introduction
  • 4.2 Data Presentation and Analysis

Chapter Five

Summary, Conclusion and Recommendation

  • 5.0 Introduction
  • 5.1 Findings
  • 5.2 Recommendations
  • 5.3 Model
  • 5.3.1 Model Parameters
  • 5.4 Conclusion
  • Reference
  • Bibliography

Chapter One

1.0 Introduction

All over the world, Nigeria inclusive, export promotion policies as an outward oriented development strategy have been areas of interests to both policy -makers and economists. Nigeria attained independence in 1960, export promotion of primary and secondary exports has been considered as a major ingredient in the long – run development programme of economy.

At independence, the Nigeria economy was essentially ma primary product exporter based on a two- pillar product, agricultural and mineral products. Between the period of 1960 and 1996, the major agricultural products contributed about 72 percent of total export value. However, since the emergence of crude oil on the economy scene, the share of agricultural products in total export value has continued to decline. It declined as far as 3%. In 1984, but increased marginally to about 6% in 1988. In fact, the two global oil price shocks of 1973/74 and 1979 virtually made the economy a mono – product exporter in which the contribution of the oil sector to total export value increased by about 37% in 1989 from 57% in 1970 to 95% in 1989 (CBN Nigeria’s Principal Economic and Financial Indicators 1970 ­1990). Moreover, the oil sector has become the major source of foreign exchange earnings to the government contributing more than 90% annually. For instance, the revenue accruing to the government through the petroleum profits tax increased by about 368% in 1989 from N 5.16 billion in 1979 to about N 24.16 billion in 1989.

The Nigerian manufacturing sector, fuelled by this buoyant oil revenues and heavy public investments grew rapidly at an average rate of about 12% per annum between 1973 and 1983, compared with a growth of Gross Domestic Product (GDP) of about 4% per annum. A detailed analysis of the manufacturing sector indicated that the share of the sector in GDP rose from 4% in 1973 to a peak of about, 12% IN 1982 (FMBP, 1990). This impressive achievement was a result of the import substitution industrialization strategy adopted during the period with its major impetus on the growth of domestic demand for industrial output.

Thus, in order to correct this distortion in the economy emanating from 1980s oil boom – burst cycles, the current policy – makers introduced the structural Adjustment Programme (SAP) in 1986 of which the export ­oriented strategy is a sector – specific policy.

The adjustment process, as a whole, is expected to effectively alter and restructure the consumption and production patterns of the economy through the restructuring of the import and export structures.

Accordingly, the industrial development is being stimulated through the export promotion policies of the government. Some of the policies that are being put in place include 100% export proceeds retention by exporters” a duty draw – back suspension scheme (increased by about 400% from N 10 million in 1990 to N 50 minion in 1991), the manufacturing Bond Scheme and the other functions of the Nigerian Export and import Bank (NEXIM) that are directed at stimulating international trade.

1.1 Background to the Study

Resources are abounding in Nigeria to fully employers all citizens and accommodate people from other countries. However, our inability to optimally utilize the nations abundant natural resources has been responsible for the information rate, poor rate of infrastructure and very low standard of living in Nigeria.

One of the solutions to the above enumerated problems is the creation of awareness of resources available and their utilization, thus the best way out of these problems is to evolve strategies that would enable such nation utilize all these resources. One of such ways is through an aggressive processing of locally manufactured products for exportation.

Moreover, Nigeria economy is been dominated by imported foreign goods and products and the orientation of an average citizen is that imported goods and products are better than locally manufactured products. Also Nigeria economy as now become a dumping ground for most of these imported goods thereby flooding the market and giving very little chance of survival to local manufacturers. Sometimes the option of an average Nigeria is that a “locally manufactured products are low in quality. This may at times be incorrect as cases as proven that same locally manufactured product are better than the imported ones.

Government has a lot to do in encouraging manufacturers to embark on an extensive and aggressive export promotion. This government can do by formulating policies that will favour of local manufacturers. Such government policies can include increase the import tariffs to scare away or reduce the quantity of product imported or using of quota system whereby quota’s are allocated i.e specific quantities are placed on imported products. All this are important, in other to allow locally manufactured products to compete favourably in the market before they can think of export. This is because a weak product that is locally manufactured in the market never can be considered to be exported to external market.

Local manufacturers on their part must improve in the standard and quality of their product to meet the local consumer’s taste and at the same time and be of international quality and standard to be exported. Also manufacturers must try to operate at optimum level in terms of resource utilization, efficient human cum managerial resources allocation and effective cost of production and method of production. All this must be at optimality for a manufacturing company to fully utilize its overall resources and capacity. Thus manufacturers must locate a strategic level to obtain an optimal point for exportation of their products.

Nigeria’s export trade is dominated by crude oil, which accounted for 95% of Nigeria’s total value of exports in 1979 till date. The agricultural commodities such as cotton, timber, coca, groundnuts, and palm oil and kernels that used to be the back bone of our export now contribute only 5% of total value. There have been absolute decrease in the value of exports of some cash crops, likely cotton, groundnuts, palm oil and pal\m kernel is now being imported.

Manufacturing industries contributed only a meagre 1 % in the total value. This underscore the fact that typical Nigeria manufacturer is not yet ready for international marketing in recognition of the danger in depending heavily on imported commodities, the Federal Government has taken measure to promote non-oil growth. The Nigerian Export Promotion Council (NEPC) was established through decree No. 26 of 1976 to spear head export growth and intensification. Also Nigeria export and import Bank (NEXIM) was established in January 1990 to boost Nigeria’s non-oil export sector.

Export will have a positive on the quality of locally manufactured production.

1.2 Statement of Problem

Despite the abundant endowment with rich natural human and mineral resources, the Nigeria economy is currently in a weak state its weakness derives from:

  1. Dependence on oil for about 95% of its foreign exchange earnings thus making it weak to negative development in the world oil market oil is highly political commodity and hence very changeable in nature.
  2. Poor economic value added activities through manufacturing. Most of our export apart from oil are mostly raw commodities yielding gain to exporters.

As Nigeria is passing through a difficult economic life, which affects the populace in no small measure, a numbers of question would therefore need to be answered.

  1. To what extent does Nigeria participate in export marketing of locally manufactured. products which have been identified as the only solution to its economic problems to enhance standard of living of the people.
  2. How many organization are aware of export potentials of locally manufactured products.
  3. What is the roles of private and public investors in the development of the manufacturing sector of the economy?
  4. What problems are on the way of organizations m achieving successful export marketing for locally manufactured products?
  5. Has the country provide enabling environment for production and exportation of locally manufactured products.

1.3 Objective of the Study

The reason of carrying out this research work include:

  1. To review the contribution of locally manufacturer products exports to the national economy.
  2. To reduce the balance of payment deficit through exports of locally manufactured products.
  3. It aims at reducing the high level of dependability on imported goods.
  4. Tax free interest earned on exports loans.
  5. Higher capital tax depreciation allowance for manufacturing exports.
  6. A development fund created to assist exporters
  7. To adjust fund to provide additional cash subsidy to exporters.

1.4 Significance of the Study

This research work is proactive in nature as not much work has been carried out on promotion of locally manufactured products for export purposes. Presently, activities in the sectors is low as the national policy on manufactured products exports have been released; but the fact still remains that export marketers have identified these products, analysed their potentials in the international market and have. corroborated its uses and economic importance. The commentaries of the world trade organization of the millennium provide a challenge to any good export marketer and an attempt will be made or how best to sell these products internationally.

This research work has the significance of awakening awareness and revealing the importance, problems, and prospect associated with export marketing in the area of locally manufactured products. It will also expose the needs of exporters as well as government sponsored promotional activities and incentives to encourage investors to the sub- sector.

It is therefore, expected that apart from serving as a partial academic fulfillment requirement for bachelor’s degree, the study generate awareness in those organization that have not been thinking of about export marketing orientation in view of its economic benefits. Offer encouragement to those of them already practising export marketing and finally, based on the findings, I hope to make recommendations that would enable the firms to improve their performance so that their cooperate objectives are not only realized efficiently, but also their contributions to the economy and social development to Nigeria could be felt.

1.5 Research Questions

  1. How will export of locally manufactured products contribute to the national economy?
  2. How will export of locally manufactured products reduces the dependability level of imported goods?
  3. To what level will locally manufactured products reduces the balance of payment deficit?
  4. What will be the effect of improved quality of locally manufactured products on export?

1.6 Research Hypothesis

  1. Hl: Exportation of locally manufactured product will contribute positively to the national economy.
    HO: Exportation of locally manufactured products will contribute negatively to the national economy.
  2. HI: Export of locally manufactured products will reduce the balance of payment deficit.
    HO: Exports locally manufactured products will not reduce the balance of payment deficit.
  3. HI: Export of locally manufactured products will reduce the high dependability on imported goods.
    HO: Export of locally manufactured products will not reduce the high dependability on imported goods.
  4. HI: Export will have a positive effect on the quality of locally manufactured products.
    HO: Export will have a negative effect on the quality of locally manufactured products.

1.7 Research Methodology

The research work is going to make use of secondary data. F or the researcher will be analyzing other writer’s work and statistical data’s in various Federal Institutions such as CBN, FOS, NEPC etc. Hence, the research work will be inform of structural composition.

The data will be analysed using regression analysis of variance (ANOVA), T Test Pained comparison, correlation co-efficient, Bar charts, graphs and tables.

To ascertain the correct appropriateness of the survey instrument, that is making sure it is adequate to measure result’s. it’s meant to measure. It will be subjected to face validity and reliability test.

1.8 Scope and Limitation of Work

The scope of this research work is restricted to manufactured goods. Even though policy on export marketing is a national one affecting the country as an entity. The restriction to locally manufactured products, is to ascertain the impact of a possible investment in the sector would have to be national economy assuming that the international marketing will appreciate the products and patronize it. Currently, the level of production in the manufacturing sector is still low without being positioned for export; this is a sad development considering the fact that export marketing is a specialist area that calls for personnel who must be conversant with the product to be sold, its economic importance and usage, banking procedure at local and international level, the basic principles of commercial law and cargo insurance, a good knowledge of geography of the world and a sound knowledge of international marketing, freight forwarding and formalities.

1.9 Operational Definition  of Terms

1. Strategy:

Is a concerned with the what’slow’s when, who of carrying out a specific action.

2. Optimization:

Is the minimum of cost of operation with the sole purpose of maximizing profit.

3. Export:

Is a form of external trade carry out or send a commodity to some other country, or a commodity conveyed from one country to another for purpose of trade.

4. Indirect Direct:

Is a method of exporting through which a company exports its product through an agent or export house.

5. Direct Export:

Is a methods of exporting through which a country exports their products directly to another countries.

6. NEPC:

Nigeria Export Promotion Council.


Nigeria Export Import Bank

8. Export Documentation:

Are the necessary documents required during the process of exporting.

9. Export Incentives:

This is incentives granted to exporters to motivate them to embark on export activities.

10. Export Policies:

Are policies made with the of promoting non¬oil exports.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

The purpose of this research is to optimize exports of non oil products with particular emphasis on exportation of locally manufactured products in Nigeria in the course of locally this research problem and prospects of exportation of locally manufactured products in Nigeria were fully examined and their projected impact on the national economy highlighted. To bring the aim of the study into reality, first hand information was gotten from federal office of statistics [F O S ] on Nigerian export by destinations, continents to O. A. U. countries, ECOWAS states and also Nigerian exports by commodity section, major commodities and composition of Nigeria’s manufactured exports.

Prior to this, a review of some relevant related literatures was conducted so as to enable the research study draw up a theoretical framework on which the actual survey was to be based through the collection and application of necessary and relevant secondary data generated for the project work.

Also a detailed and constructive general overview of the research was also carefully studied to enlighten and broaden the future readers of the work knowledge on various issues concerning exports and its relevance to the Nigerian economy as a whole.

In carrying out this research , an investigation approach was adopted and a broader perspectives was given to the analysis of data collected using Pearson correlation analysis, analysis of variance [A N 0 V A ], regression analysis, paired comparison, T – test and graph [bar and line graphs ].

This chapter will attempt to given a detailed summary of the whole research work and carefully notes all the findings and results carried out and gotten in the research work, offer recommendations and proper possible solution to the problem and key economic issues that is synonymous to this country with the aid of a model and subsequently given the conclusion.

5.1 Findings

  1. It was discovered that least developed countries [LDCS] in Africa particularly in Nigerian, they have been increasingly marginalized in international trade mainly owing to their high dependency on imported raw materials goods and services and on the production and exports of primary commodities.
  2. It was also discovered that many least developed countries [LDCS] like Nigeria have become increasingly marginalized in the world economy in terms of their share in world trade and output [both agricultural and industrial]. Heavy dependence on primary commodities is one important reason for the slow growth of their export and their economies in general.
  3. Furthermore, it was discovered that trade liberalization had been undertaken by many least developed countries [LDCS] like Nigeria was adopted in response to the conditional finance available from multilateral financial institutions such as a the world bank and international monetary fund [IMP]. They have generally involved neutralizing incentives for exports and imports at low tariffs.
  4. It was discovered according to Mendi Shafaedin [1994] that in many least developed countries {LDCs} particularly Nigeria. Rapid expansion of exports requires, inter alia the development of supply capacity and diversification into production and export of manufactures.
  5. According to AKP AN H.EKPO and Festus O .EGW AKHIDE {1994} it was also discovered that the important feature of Nigeria’s external trade is the geographical concentration of exports destinations is that a substantial proportion of the country’s export was concentrated in few countries {e.g. BRITAIN.USA., CANADA, FRANCE, GERMANY, JAPAN}.
  6. According to AKPAN H.EKPO and FESTUS O. EGWAKHIDE { 1994} it was also discovered that starting from the oil boom of the 1970s the share of non oil exports to total export started to decline progressively. This is attributed largely to the neglect of the agricultural sector following the oil boom together with over valuation of the exchange rate and collapse of export commodity prices in world market.
  7. According to ASKIRA ET AL {1996] it was discovered that in 1960′ s Nigeria export trade was largely dominated by non-oil products such as groundnuts, palm oil and palm kernel. Other non-oil exports of significant values were tin ore, colunbite, cattle hides and skin. These commodities accounted for about 66 percent of total exports. The same continued to the early 1970′ s.
  8. The economic difficulties of the early 1980’s lead to the implementation of the structural adjustment programme {SAP} from JUL Y 1986 which accounted for the vast expansion in the value of exports from 8.9 million naira, exports shot up to about 109.9 billion naira, four years later. Despite this however, the average annual share of crude oil export during this period stood at about 96 percent.
  9. Since the introduction of structural adjustment programme {SAP} in 1986,and thereafter , the non-oil exports sector recorded position growths till year 2007 with the exception ofl992 when it recorded a negative growths rate of 9.6 percent and 1998 when it also recorded a negative growth rate of 21.3 percent.
  10. It was discovered that government had not really given the needed adequate attention to the non-oil exports locally manufacturers, products in the non-oil exports sector, and there is a low capacity utilization of manufacturing capabilities in the country coupled withlack of basic infrastructure and finance for manufacturers. Which had resulted in a significant proportion of manufactured product exports. To the total export till date.
  11. As a result of the finding above, it was discovered that the Nigerian export promotion council {NEPC} was established in 1976 has a mandate to ensure steady. Growth in Nigeria’s manufacture exports trade. In identifying industries and products for the export markets. It has been participation in local and international trade fairs, establishing trade canters and commercial desks abroad.
  12. Also, it was discovered that the Nigerian export import bank {NEXIM} was established in January 2, 1991, as an export credit agency required to make financed available in local and foreign currency to exporters and is expected to provide risk bearing facilities in the form of credit guarantee and insurance.
  13. From the research conducted it was discovered that exportation of locally manufactured products will contribute immensely to the nation economy of the country and form a platform for the achievement of the elusive national economic of the country and form a platform for the achievement of elusive national economic prosperity which had eluded the country for so long.
  14. Exportation of locally manufactured products will go a long way in reducing the balance of payment deficit of the country because a continuous increase in manufactured products. Exports will generate more foreign exchange income, thereby reducing the country’s expenditure and improving her terms of trade.
  15. Furthermore, it was found that exportation of locally manufactured products would reduce the high dependability on imported goods because the country will engage in import substitution whereby most goods imported will be produced locally with the aim of reducing the demands on foreign goods and full utilization of local capacity for production.
  16. It was discovered that export will have a significant impact on the quality of locally manufactured products because the local producers of such products will strive to make sure that the products produce meets the ISO 9002 standard to be internationally acceptable.
  17. Apart from the findings above, it was discovered that the pricing of non oil export particularly manufactured products exports is subject to fluctuation because developing countries which Nigeria is an example have no control over pricing of both semi finished and finished goods that are meant for exports. Because prices are internationally determined, buyers determined pricing is usually on the low side.
  18. Furthermore, it was discovered that the hostile nature of the International market towards the manufacture products coming from developing countries is another problem facing the sector. The hostility is usually in respect of the quality of the export products. In some cases, international market does discriminate against products coming from most African countries of those ones coming from Asian countries.
  19. It was discovered that there is the problem of non documentation of export products by most exporters.
    Which has accounted greatly for the insignificant contribution of the manufactured exports to the total export earnings. On daily basis largely volume of locally manufactured products are exported out of Nigeria to neighbouring countries without being recorded formally.
  20. Finally, it was discovered that sharp practices by exporters are in no small way affecting the exports of locally manufactured products. These sharp practices include under invoicing in which prices quoted on pro forma invoices are lower than what is obtainable in the international market at time of export and under declaration of actual export figures or outright refusal to declare exports through from NCD3 {A} as provided by decree II of 1988 on export.

5.2 Recommendaion

  1. Trade liberalization has recommended to most least developed countries {LDCs} in Africa particularly in Nigeria with the aim of expanding GDP and exports and diversifying the production and export structure into manufactures.
  2. Diversification of export should be achieved in the near future by constantly fine tuning the relevant trade policies and probably with the establishment of Export processing ZONES {EPZ}.
  3. The federal government should design policies and procedures to promote an export culture in the manufacturing industry. The government should not only institute an elaborate system of duty exemptions on imported inputs used in exports.
  4. The Nigerian government should also employ tax incentives to encourage the production of manufactured exports. Some of the policy measures formulated had not met set objectives.
  5. The government needs to find a key trade and foreign investment policies needed for a dramatic change in the growth of manufactured exports. A major policy shifts in uncalled for, rather additional policy measures to complement those already being implemented, as well as faithful implementation of these policies should be considered.
  6. The policies of some countries that have successfully practiced an export led growth strategy will be examined with a view to adopting those that are relevant and environmentally suitable. For instance, Nigeria could learn from china’s export strategy.
  7. Furthermore, to change the unimpressive performance of manufactured, products exports, there is need to streamline all the procedures associated with non oil exports such that the sharp practices earlier mentioned in the findings among the exporters will be dramatically reduced if not eliminated.
  8. 8. In addition, this will eliminate or at reduce the cases of collision among the exporters, export officials and custom men the export desk of the department of custom and excise.
  9. There should be an enlightenment campaign for the exporters to curb the incessant adulteration of export products, which in most cases has put the country’s manufactured exports in bad position in the international market.
  10. The enlightenment campaign is necessary and necessary and must be duly implemented in order to restore the international market’s confidence which is already biased against our manufactured products exports and our exporters who are associated with frauds and cheats.
  11. Nigerian export promotion council {NEPC} should be more active in the discharge of its duties. Perhaps the enabling law that set up the council be given a second look {i.e. be amended} to make the council function as a regulation body for exporters instead of the present situation whereby its role is only advisory.
  12. Exporter {existing and potential} should be educated on the various package of incentives that are available for them. This creation of awareness becomes relevant because some exporters resort to shady deals due to the ignorance {not in all cases} of the incentive package granted them by NEPC.
  13. NEPC should also bring to the awareness of exporters several other incentives of the government, otherwise they will continue to manipulate the export system, and this will not augur well for the development Nigeria’s manufactured product exports.
  14. Moreover, attempt should be made by the government to put in place an industry of product designed incentives rather than the generalized regime of incentives currently being paraded. This will enable the country achieve the objective of promoting exports of manufactured exports.
  15. The government should evolve a new value system that would propel the forces of hard work, excellence, cohesion, eradication, discipline, determination, commitment and loyalty that are necessary to the attainment of the development goals of the country in this country .
  16. The attraction of foreign direct investment {FDI} into the national economy must be carried out in such a manner that the primary variables of incentives that would promote and attract investment in the manufacturing sub sector.
  17. The research study recommends a total review of the administration of existing incentives on exports of manufacturing to enhance their relevance and effectiveness.
  18. There is also a need to streamline and centralize export procedures and promotion of economic integration in the west African sub region. The ECOW AS market structure and focus must be reviewed and accorded a centerpiece for export market development of manufactured products. Such products like paints, glass, cosmetics, footwear’s, plastics, furniture etc.
  19. The NEPC and ANE should create more awareness on their activities and liaise with agencies both locally and internationally that are concerned with promotion of exports of locally manufactured products. Auction sales of products, trade fairs and exhibitions are very critical to the sub sector.
  20. On the huge capital requirement of investment in the sub sector, the research study has revealed that attraction of foreign direct investment would go a long way to usher in development in the sector. This would be made possible if government implements the recommendation proffered earlier. Secondly, a consortium of financial institution can sponsor genuine investors for the exportation of identified locally manufactured products. The various loans meant for development of export business must be appraised to determine their appropriateness and amount required to successfully achieving the desired impact.

5.3 Model

5.3.1 Model Parameters

The model sheds more lights into how a strategic optimimazation of export of locally manufactured products could be achieved in Nigeria. The model presented in this research work is basically countries {LDCS} like Nigeria and it could be achieved if government and policy makers can implement the structure suggested in the model.

The model is basically divided four structure which comprises of

  1. The basic structure
  2. The supportive structure
  3. The promotional structure
  4. The regulatory structure

The basic structure of exports of manufactured products in Nigeria are the necessary activities that must be put in place to ensure optimum exports of manufactures. They could be in form of diversification of production and export structure of the country, the constant fine tuning of various trade policies, liberalization of trade in the country, establishment of export processing zones all over the country and learning from other countries exports success experience like china, Japan, Singapore etc.

The supportive structure in the model are supportive infrastructure that will aid the effective optimum exports of manufactured products in Nigeria such supportive infrastructures are in form of tax exemptions and holidays, increase direct investment, increase in inflow of credit grant to manufactures who engage in inflow of credit grant tomanufactures who engage in exports of the products and increase in level of infrastructural development.

The promotional structure in the model refers to all the various institution and activities involve in promotion of exports.NEPC is one major export promotional institution, which performs activities like organizing and participating in local and international trade fair and exhibition, to organize seminars, conference and workshops for exporters, to expose exporters to development in bond, credit guarantee etc are also use to promote exports. International market and to influence policies through recommendation to government. Fund, duty draw back, manufacture in bond, credit guarantee etc are also use to promote exports.

Lastly, the regulatory structure in model are various regulatory mechanism which can be used as a form of check and control measures to exporters. It is divided into three which includes.

  1. Financial regulatory structure, which includes, regulation of foreign exchange, audit and accountability.
  2. Internal regulatory structure which includes effective planning and research, effective and quality product to meet the international standard and employment of staff with adequate export experience.
  3. The policy regulatory structure, which includes disciplined leadership and stable policy, effective government and regulatory custom control. It should be duly noted that due to space constraint some other aspect of this research in the model could not be covered.

5.4 Conclusion

The conclusion of the this research study is based on the mottos of the Nigerian export promotion council {NEPC} and that of the association of Nigerian exporters {ANE} which states that exports for survival” and “to grow at home, we must sell abroad, have respectively. The revelation from this research study have actually pointed the fact that export marketing of locally manufactured products is a sure way of enhancing socio economic development of the nation.

It is pertinent to say that the research study highlighted the difficulties exporters go through in selling their products abroad as well as procuring cheap funds for facilitation of their transactions.

In the case of not getting buyers, the industrialized countries who patronizes these products always stress on the poor quality of the products while the exporters complain much about high cost of doing business.

There is also the need to classify and categorized non oil exports, hence products from the solid minerals, crude oil and agricultural sector would be accorded different status from manufactured products. All of them are presently called non oil exports.

Non oil products is especially the locally manufactured products holds much promise for the future development of the country. The magic ingredient being the revenue from exports. The importance cannot be over emphasized. Studies like Obadan {1993} and Askira et at {1996} agree that there is a strong evidence that output and growth imported. They reiterated that growth in exports effects on the economy as a whole given the right policy framework such effects include:

  1. Growth capacity utilization
  2. Growth in employment and real wages {higher labour demand would have position effective on wages}
  3. Growth in investment particularly in new technology to meet up the competition in the export market.
  4. Improve cost efficiency, Product quality and competitiveness. Lower prices of goods would also mean increase in real income.
  5. Easing off foreign exchange bottlenecks which plague most developing economies.
  6. Positive investment polices on the primary section, most especially of upstream investment policies are put in place.

Investment in the sub sector had not generally low and government does not seem tomatch this proclamation with adequate funding. This gross inadequacy of funding.

Coupled with utilization of industrial capacity, obsolete technology, and under industrialization are the major constraint in the realization of the nation’s elusive economic development and Prosperity.

Finally, the research work would be concluded by proclaiming that apart from export of locally manufactured products potentials to increase the national revenue base and earn foreign exchange the job creation capacity is high, in addition to aiding rapid industrial development. Given the huge economic and industrial potentials of the sub sector, the present level of funding, both from public and private sectors does not seem to match the urgency and the seriousness that should go with the development of such a critical area of the economy.

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