EXPORTATION OF MADE IN NIGERIA GOODS AS A TOOL FOR
DEVELOPMENT OF NIGERIAN ECONOMY
CHAPTER ONE
1.0 INTRODUCTION
Any developing country seeking to achieve economic growth should endeavour to reduce
importation to the barest minimum and utilise locally resources, even if not having the
required production capacity for export purposes. In Nigeria for instance, those products
that are manufactured locally are referred to as “Made-in-Nigeria goods”. However, no
matter how cheap a product is, a population that has majority of her inhabitants living
below poverty level has to evolve stringent strategies to ensure that the products it intends
to offer meets the consumers’ need and that it has the required financial ability to initiate
purchase (Alego, 1992). As society undergoes rapid changes and becomes more affluent,
newer social forces make consumers spend a greater part of their income in ways
markedly different from what took place in the past. Consumers want the advantages of
affluence and the latest services that technology and business can offer (Achumba, 2004).
Also, manufacturers of locally made goods who peradventure have to compete with
imported ones in the market might have to devise strategies to maintain a competitive
advantage, in order to remain in the market. The important role of marketing in
determining the success or otherwise of any organization cannot be over-emphasized
notwithstanding the size of such an organization. Research into the secret of the
development of some modern day corporations which could be regarded as industrial
giants, showed that aggressive marketing made them what they are today
(Mbagwu,2003).The increasing competition from a lot of new entrants into the market,
dwindling consumer purchasing power, increasing awareness on the part of the
consumers and a renewed emphasis by the consumers on the need to have values for their
1
,money have made new initiatives imperative in the Nigerian market that is saturated with
all sorts of imported products (Kotler, 1984).
Manufacturers of locally manufactured goods are therefore faced with a situation where
product differentiation – in terms of price and quality, customer needs and company
capabilities, interest in a competitive context since these factors converge to form the
customers’ definition of value (Akingbola, 1999). Opportunities equally abound to
compare the locally made goods with some imported ones available in the market
(smuggled or otherwise) which are meant to satisfy similar purposes (Oladele, 2006).
Marketing implications of the above scenario are; irregular supply of products, supply of
lower quality product fluctuating prices due to product shortages, low reputation of
manufactured goods, low motivation towards advertising, low marketing orientation and
a general consumer discontent with home made goods (Aire, 1973; Kalegha, Okechukwu
& Soyeye, 1983). Nigerian manufacturing sector is assailed by powerful forces, which
have been threatening its existence. Factors internal and external imperil its survival.
Indeed, it is no exaggeration that most of Nigerian manufacturing capacity may cease to
exist by the middle of the decade unless urgent steps are taken to reverse the visible
progressive decline, in absolute and relative terms of the manufacturing mix (Sobowale,
1997). Increasing globalization of world trade and Nigerian’s continuous trade
liberalization has encouraged dumping of foreign goods in the country thereby making
marketing of home-made goods not only difficult, but in some cases almost impossible.
Over the last decade, Nigerian manufacturers have been enmeshed in a dilemma, borne
out of ensuring long-term survival in an atmosphere of ever increasing product cost, and
ever-decreasing consumer purchasing power (Akomolede and Oladele, 2008).
While other business functional areas are busy with immediate responsibilities – cost
reduction, increased productivity, financial discipline etc, the marketing manager must
formulate and implement effective marketing strategies that will improve
competitiveness regardless of the turbulent and unpredictable nature of our business
2
, environment. Previous studies have also shown that Nigerians have unfavourable
attitudes toward homemade goods (Aire, 1973; Kalegha, Okechukwu & Soyeye, 1983).
In view of the aforementioned, this study examine the problems and prospects inherent in
marketing homemade goods in Nigeria as well as the possible relationship between
product quality and consumers’ attitude and readiness to purchase a product.
1.2 Statement of the Problem
An extensive amount of work has been conducted to investigate issues relating to export
barriers and how they affect export performance (Karelakis et al., 2008; Katsikeas &
Morgan, 1994) and some of the findings seem to indicate that some export barriers are
country-specific (Tesfom & Lutz, 2006; Julian & Ahmed, 2005; Leonidou, 2004). This
could be due to a host of factors such as cultural differences, prevailing economic
conditions and differences in industry structure in different countries. This could explain
how relatively little is known about why Nigerian Industry in the area struggling to
improve their export performance despite the existing potential. This gap creates the need
for research to be conducted in order to identify and determine the factors that are
affecting export performance of Made in Nigeria goods on development of Nigerian
economy.
Non-oil product plays an important role in the economic growth and development
of the country. Non-oil exports, especially agricultural product like groundnut, palm oil,
cotton, natural rubber, coffee, gum Arabic, sesame seed, etc. was our main stay before the
period of the oil boom. It was during that period (that is, period of oil boom) that
Nigerians neglected non-oil exports to an extent. Nigeria can be categorized as a country
that is primarily rural, that is, it depends on primary product export (especially, oil
product). Since the attainment of independence in 1960 it has experienced ethnic,
3
DEVELOPMENT OF NIGERIAN ECONOMY
CHAPTER ONE
1.0 INTRODUCTION
Any developing country seeking to achieve economic growth should endeavour to reduce
importation to the barest minimum and utilise locally resources, even if not having the
required production capacity for export purposes. In Nigeria for instance, those products
that are manufactured locally are referred to as “Made-in-Nigeria goods”. However, no
matter how cheap a product is, a population that has majority of her inhabitants living
below poverty level has to evolve stringent strategies to ensure that the products it intends
to offer meets the consumers’ need and that it has the required financial ability to initiate
purchase (Alego, 1992). As society undergoes rapid changes and becomes more affluent,
newer social forces make consumers spend a greater part of their income in ways
markedly different from what took place in the past. Consumers want the advantages of
affluence and the latest services that technology and business can offer (Achumba, 2004).
Also, manufacturers of locally made goods who peradventure have to compete with
imported ones in the market might have to devise strategies to maintain a competitive
advantage, in order to remain in the market. The important role of marketing in
determining the success or otherwise of any organization cannot be over-emphasized
notwithstanding the size of such an organization. Research into the secret of the
development of some modern day corporations which could be regarded as industrial
giants, showed that aggressive marketing made them what they are today
(Mbagwu,2003).The increasing competition from a lot of new entrants into the market,
dwindling consumer purchasing power, increasing awareness on the part of the
consumers and a renewed emphasis by the consumers on the need to have values for their
1
,money have made new initiatives imperative in the Nigerian market that is saturated with
all sorts of imported products (Kotler, 1984).
Manufacturers of locally manufactured goods are therefore faced with a situation where
product differentiation – in terms of price and quality, customer needs and company
capabilities, interest in a competitive context since these factors converge to form the
customers’ definition of value (Akingbola, 1999). Opportunities equally abound to
compare the locally made goods with some imported ones available in the market
(smuggled or otherwise) which are meant to satisfy similar purposes (Oladele, 2006).
Marketing implications of the above scenario are; irregular supply of products, supply of
lower quality product fluctuating prices due to product shortages, low reputation of
manufactured goods, low motivation towards advertising, low marketing orientation and
a general consumer discontent with home made goods (Aire, 1973; Kalegha, Okechukwu
& Soyeye, 1983). Nigerian manufacturing sector is assailed by powerful forces, which
have been threatening its existence. Factors internal and external imperil its survival.
Indeed, it is no exaggeration that most of Nigerian manufacturing capacity may cease to
exist by the middle of the decade unless urgent steps are taken to reverse the visible
progressive decline, in absolute and relative terms of the manufacturing mix (Sobowale,
1997). Increasing globalization of world trade and Nigerian’s continuous trade
liberalization has encouraged dumping of foreign goods in the country thereby making
marketing of home-made goods not only difficult, but in some cases almost impossible.
Over the last decade, Nigerian manufacturers have been enmeshed in a dilemma, borne
out of ensuring long-term survival in an atmosphere of ever increasing product cost, and
ever-decreasing consumer purchasing power (Akomolede and Oladele, 2008).
While other business functional areas are busy with immediate responsibilities – cost
reduction, increased productivity, financial discipline etc, the marketing manager must
formulate and implement effective marketing strategies that will improve
competitiveness regardless of the turbulent and unpredictable nature of our business
2
, environment. Previous studies have also shown that Nigerians have unfavourable
attitudes toward homemade goods (Aire, 1973; Kalegha, Okechukwu & Soyeye, 1983).
In view of the aforementioned, this study examine the problems and prospects inherent in
marketing homemade goods in Nigeria as well as the possible relationship between
product quality and consumers’ attitude and readiness to purchase a product.
1.2 Statement of the Problem
An extensive amount of work has been conducted to investigate issues relating to export
barriers and how they affect export performance (Karelakis et al., 2008; Katsikeas &
Morgan, 1994) and some of the findings seem to indicate that some export barriers are
country-specific (Tesfom & Lutz, 2006; Julian & Ahmed, 2005; Leonidou, 2004). This
could be due to a host of factors such as cultural differences, prevailing economic
conditions and differences in industry structure in different countries. This could explain
how relatively little is known about why Nigerian Industry in the area struggling to
improve their export performance despite the existing potential. This gap creates the need
for research to be conducted in order to identify and determine the factors that are
affecting export performance of Made in Nigeria goods on development of Nigerian
economy.
Non-oil product plays an important role in the economic growth and development
of the country. Non-oil exports, especially agricultural product like groundnut, palm oil,
cotton, natural rubber, coffee, gum Arabic, sesame seed, etc. was our main stay before the
period of the oil boom. It was during that period (that is, period of oil boom) that
Nigerians neglected non-oil exports to an extent. Nigeria can be categorized as a country
that is primarily rural, that is, it depends on primary product export (especially, oil
product). Since the attainment of independence in 1960 it has experienced ethnic,
3
