THE IMPACT OF FOREIGN TRADE ON THE NIGERIA ECONOMY
ABSTRACT
It was discovered that Nigeria as a third world country lacks certain infrastructural facilities necessary for the smooth exportation and importation of goods and services. The research intends to identify and evaluate the utility rendered by the importation and exportation of goods and services to the Nigerian people and the economy as a whole. it is also aimed at ascertaining the efficiency and adequacy of the Nigeria industries in comparison with the foreign industries.
To achieve its objectives, the researcher has duely examined the rate at which Nigeria’s imports exchange for its exports. Based on the secondary data collected and analyzed, it was observed that Nigeria mostly has small-scale industries which are insufficient for producing export goods. These industries also can not meet with the local needs. Nigeria depends mostly on imported goods for survival. It was also observed that, Nigeria exports mostly primary products solid minerals, agricultural products.
Finally, it was observed that, foreign trade has had some negative effects on the Nigeria economy. Their problems include unemployment increased national debts, over dependence. It has also had good effect like increased in out put, foreign markets, better technical known- how. The project is divided into five chapters.
Chapter one covers the introduction, statement of problem, purpose /objective of the study, significance of the study, limitation of the study and definition of terms.
Chapter two treats different methods of the rate at which Nigeria’s imports exchange for its exports.
Chapter three contains the research design and methodology of the study the source of data used, location of data and method of data collection.
Findings of the research are the issue examined in chapter four. While the last chapter is devoted to recommendation and conclusion.
DEDICATION
This project work is dedicated solely to Almighty God his love and Grace the source of knowledge wisdom and understanding through his only son
Jesus Christ. Amen.
ACKNOWLEDGEMENT
The success of this project would not have been achieved without the co-operation and assistance of many individuals. For this, I remain most grateful to my loving and caring parents, SIR AND LADY EMEKA. To my dearest mother GRACE IWUJI and my brothers and sisters for their own individual assistance.
I am equally very grateful to certain individuals for their moral and financial support. They are, MR. AND MRS. KINGSLEY KOUNGANH, BERTHA, ROSEMARY, ILAYE KONUGH and others too numerous to mention. I appreciate all the assistance of my kith and kin.
I am also very grateful to my lectures MR. ODIKE, OJINTA, ILOH, OKAFFOR, ODOH, and my academic adviser UDEH, and my H.O.D. DR JOHN ORJIH for their moral support.
I am also very grateful to my project supervisor B.T. IKECHEONWU, for his exemplary moral and academic rectitude.
Finally, i give my unalloyed thank to the most Gracious God for his loving and kindness.
IWUJI DORIS NGOZI BKF/N2003/2004.
TABLE OF CONTENTS
TITLE PAGE I
APPROVAL PAGE II
ABSTRACT III
DEDICATION IV
A ACKNOWLEDGEMENT V
TABLE OF CONTENT VI
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF PROBLEM 1
1.3 PURPOSE/OBJECTIVE OF THE STUDY 2
1.4 SIGNIFICANCE OF THE STUDY 3
1.5 LIMITATION OF THE STUDY 4
1.6 DEFINITION OF TERMS 5
1.7 REFERENCE 6
CHAPTER TWO INTRODUCTION
1.1BACGROUND OF THE STUDY 1
1.2 STATEMENT OF PROBLEM 1
1.3 PURPOSE /OBJECTIVE OF THE STUDY 2
1.4 SIGNIFICANCE OF THE STUDY 3
1.5 LIMITATION OF THE STUDY 4
1.6 DEFINITION OF TERMS 5
1.7 REFERENCES 6
CHAPTER TWO- REVIEW OF RELATED LITERATURE 7
2.1 FOREIGN TRADE DEFINITION 7
2.2 OBJECTIVE OF FOREIGN 8
2.3 AIDS TO GOOD FOREIGN TRADE 10
2.4 CLASSES OF COMMODITIES TRADABLE 13
2.5 SIZES AND CLASSES OF INDUSTRIES IN NIGERIA 15
2.6 COMPARISON OF NIGERIA’S
EXPORTS AND IMPORTS 18
2.7 THE IMPACT OF FOREIGN TRADE ON
THE NIGERIA ECONOMY 20
2.8 REFERENCE 25
CHAPTER THREE RESEARCH METHODOLOGY 26
3.1 SOURCES OF DATA 26
3.2 LOCATION OF DATA 26
3.3 METHOD OF DATA COLLECTION 27
CHAPTER FOUR
SUMMARY OF FINDINGS 28
CHAPTER FIVE
RECOMMENDATION AND CONCLUSION 29
5.1 RECOMMENDATION 25
5.2 CONCLUSION 31
BIBLIOGRAPHY 32
CHAPTER ONE
BACKGROUND OF THE STUDY
It is wise to assert that no country in the would can sustain itself or survive without exchanging goods and services with other countries of the would. It is also wise to say that the economic growth and development of a country largely depends on how its imports exchange for its exports.
In view of the above assertions. I have deemed it very necessary to embark on a research work or project on the impact of foreign trade on the Nigeria economy”. This is an attempt and effect to draw the attentions of many Nigerian scholars and professionals to certain silent questions which may be relevant to knowing the impact of foreign trade on the Nigeria economy. These questions are:
1.2 STATEMENT OF THE PROBLEM
- How far has our country advanced in the production of goods with export quality?
- What are the things necessary for the industrial development of Nigeria?
- How much has Nigeria’s exports competed with her imports?
If we are able to give answers to these very relevant questions, and if we are able to identify the problem we encounter in the process, also if we are able to give solutions to these problems both, individually and collectively, then we will be able to solve these pressing problems which have hindered the overall economic growth and development of the Nigeria economy. And Nigeria will grow to become fully industrialized as many advanced countries of the world.
A developing economy as that of Nigeria is basically characterized by a high degree of subsistence production, with a very low application of modern technology. These have resulted into a very high volume of importation against manufacturing and tertiary industries are relatively low and the agro- based industries are common but, in low capacity.
Foreign trade should be highly encouraged but, there should be a balance of trade that is the aggregate imports should equal the aggregate exports, so as to have a balanced economy and good exchange rate.
1.3 OBJECTIVE OF THE STUDY
The objective of this will be summarized as follows:
1. To find out the effect of foreign trade on Nigeria economy.
2. The objective intends to compare the rate at which Nigeria import and exports goods and services.
3. To find out the impact of certain bilateral and multilateral trade relationship which Nigeria has made with other countries over the years.
4. to find out how foreign trade has helped Nigeria economy
5. To find out whether Nigeria has invested on industrial projects.
To find out how industrialization should be embraced by Nigeria in other to develop and in order to be able to compete in the international market.
1.4 SIGNIFICANCE OF THE STUDY
In as much as Nigeria has benefited from foreign trade, it has also felt a negative impact of foreign trade. This is because of the fact that, Nigeria is not industrialized, hence Nigeria imports much more than it exports. This has caused and advance balance of payment (B.O.P)
This study will help to a large extent to
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