CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
One of the significant national objectives in Nigeria is to have a self-reliant country. Paradoxically, this appears not to be the case. As noted, Nigeria is rich and productive enough to providing what she needs. Nevertheless this seems a "past tale". Nigeria produces substantial range of items including consumer goods such as food items, flour, sugar, beverages, tinned foods, etc; clothing such as garments, fabrics, and various other products, footwear such as shoes and sandals, cover shoes, and so on, electrical home devices, and so on. However, these products receive little or no patronage by Nigerians particularly when the foreign ones are available. This practice triggers great shortage in the Nigerian manufacturing in both demand deficient and structural form (Agbonifoh, et al 2007).
As illustrated by Ogumbe (2001), the way with which Nigerians show towards the locally produced goods is really incredible". He further specifies that Nigeria produces building materials, consumer items, miscellaneous products like chemical drugs, beverages, cooking utensils and stationary items, and so on. However these products are frequently called "made-in- Nigeria goods" or "the Igbo made" by many Nigerians consequently which they get little or no patronage by them. With this habits, Nigeria loses its craftsmanship, local production, regression in export, downside in technology and lastly poor economic development. Over time, Africans (Nigerians particularly) ended up being poor since people have the tendency to disregard even their traditional simple techniques they inherited from their predecessors for the foreign products (Walter Rodney, 1972).
Nigeria currently diverts majority of the nation's income for importing foreign products to their increasing need. For instance, Nigeria's food import expense increased from mere ₦112.88million yearly throughout 1970 - 1974 to ₦1,964.8million in 1991. While between 2000 and 2008, the amount of ₦180billion (or two) was spent on imports of cheaply only grains. Nevertheless, imports between 2009 and 2012 stood at 30%, 17.4%, 21.5%, and 12.9% specifically (CBN, 2014). Therefore, there was decrease in export in crop production, while food production increased just marginally.
Import of goods and services has played a significant role in the economic growth of sub-Sahara African nations particularly Nigeria. The ability of Nigeria to produce capital and consumer items is limited; for that reason, there is heavy reliance on imports from the developed nations. Currently the economic indices of Nigeria are suggesting crucial indications of distress with inflation running high each year, the interest rate is likewise at the increase varying from bank to bank, and for instance the interest rate of First City Monument Bank (FCMB) is 33% as at April 2020.
The issue of preference for foreign made goods is mainly on consumables and luxury goods such as shoes, expensive dresses, jewelries, bags and so on. This preference has brought about a lot of problem to Nigeria economy in the area of employment, unfavorable balance of payment, budget plan deficit, obstacle to the development of local industries and a host of other negative impacts. This study for that reason highlights the issues connected with the impact of foreign goods on Nigeria economy.
1.2 Statement of the Problem
The worrying rate for preference for internationally made products by Nigerians as compared with made in Nigeria products deserve much attention as this will deprive the growth of infant industries and impede financial development of the nation. Made in Nigeria products has suffers problem and absence of patronage from Nigerians, owing to the love Nigerians have for foreign made products and this is not healthy for Nigeria economy. This study therefore, attempts to evaluate the impacts of foreign made goods on Nigerian economy and to determine the steps taken by the government of Nigeria to deal with the issue.
1.3 Objectives of the Study
The main objective of this study is to examine the impact of foreign goods on Nigeria economy. However, the specific objectives include:
a) To ascertain the reason for preference of foreign made goods by Nigerians than made in Nigeria goods.
b) To understand the effects of foreign made goods on Nigeria economy
c) To examine the measures taken by Nigerian government to eradicate the consumption of foreign made goods.
1.4 Research Questions
The following statements were considered to be the research questions for this study:
a) What is the reason for preference of foreign made goods by Nigerians than made in Nigeria goods?
b) What is the effects of foreign made goods on Nigeria economy?
c) What is the measures taken by Nigerian government to eradicate the consumption of foreign made goods?
1.5 Research Hypotheses
The following statements were considered to be the research hypotheses for this study:
a) There is a significance relationship between foreign made goods and Nigeria economy
b) There is a significance relationship between measures taken by Nigerian government and eradication of the consumption of foreign made goods.
1.6 Significance of the Study
This research work will be of utmost benefit to the manufacturing organizations engaged in consumables and luxury goods on how to improve the quality of their products, it will also benefit the general public by appreciating the fact that made in Nigeria goods can compete favorably with the foreign goods, it will also be of benefit to the government to ensure that adequate measures are taken to protect the image of indigenous industries.
The study is also significant because it will lead to suggestions on how to improve the standard of made in Nigeria goods, it will also identify some of the hidden problems causing production of low quality products, it will encourage the consumers to appreciate and patronize made in Nigeria goods.
Finally, the researcher believes that knowledge gained from this study can be useful to other researchers who want to conduct further studies on similar topic.
1.7 Scope of the Study
This research study is limited to the analysis and impact of foreign made goods on the
Nigeria economy with emphasis on Lagos state. For the purpose of this research work, the researcher has limited himself to Lagos south senatorial district where data and information were collected for analysis sake in order to come out with good results.
The scope is limited due to financial and time constraints. A limit is set on the reliability and accuracy of the findings and conclusion of the researcher, the study uses a time frame of 10 years from 2012 to 2022.
