THE IMPACT ON NIGERIA IMPORT RESTRICTION ON THE ECONOMY
1.1 STATEMENT OF PROBLEM AND PURPOSE OF STUDY
most developing countries like Nigeria which depend more on importation has been affected strongly due to the import restriction on the economy. For the fact that the standard of living of the economy is proportional to the rate of importation of goods into the country. One of the greatest impact of restricting importation in the country like Nigeria will be gradual declining of the standards of living. Which we known that its efficacy will result to many adverse effect such as increase the death rate fast decrease in population emigration and other effect which may come up later on the course of this project.
For this purpose this project seeks to identify the impact of Nigeria import restriction on the economy and to discus its effect on industrialization market and other commercial areas. Also to ascertain the volume and the structures of these effect on the standard of living of Nigeria citizens
1.2 RATIONAL OF THE STUDY
This study if successful conducted and the recommendation can change the country we reduce rending this can systematically attract the much needed condition to reduce poverty as regards impact of Nigeria import restriction the economy.
1.3 SIGNIFICANT OF THE STUDY
This topic the impact of Nigeria import restriction on the economy is so unque such that it is affecting both the economy and the masses in general.
To run with issue of import restriction through has both the good and bad effect or impact on this country of our. Community to the bad impact it has led to increase in the cost of buying what was formal cheap to obtain hence has led to high cost of living.
Wherefore coming form the good impact it has cause our locally made good to be appreciated in our economy rather than run towards the foreign made one.
Hence this study will be of great importance to Nigeria the economy general public student and every body that comes across the material. And will be of great usefulness to student that may want to go into the study.
1.4 BACKGROUND OF THE STUDY
The Nigeria economy has undergone structural changes in the past three decades form a predominantly agricultural economy in the 1960s to an economy mainly reliant on oil form the mild 1970 the result was that the consumption to rationalize imports when the oil boom gave way to an oil glut led to the emergence of trade arrears. A growing debt burden also surface in the early 1990 as a result of jumbo loans acquired form the international capital market.
Most less developed countries including Nigeria have turned to import substitution policy in order to become self-sufficient and to help develop indigenous industries that will need raw materials in order to production these products most of these imputs are not locally available.
Consequently the industries depends heavily on imported inputs of raw materials machinery capital equipment and general consumer goods it requires therefore a complementary development in the agricultural sector which provides the earning necessary to finance the minimum level of imports required to sustain the continued growth of the local industries.
Unfortunately the policies adopted to reserve the market for the domestic product primary tariffs is some how based in its effects against production for export countries who rely on import substitution as a means of developing their economics the system of protection is adopted and consist primarily of the use of import restrictions which take various forms including outright ban or total prohibition of imports high import duties or tariffs in the form of complicated customs administration or the placing of specific commodities on license. These restrictions are used either to shut out competition entirely or its give domestic producers a significant cost advantage our foreign producers the scope of this paper covers the year between 1995 and 1999 the focus as on the impact of restrictions or measures introduced by the federal government during these years and whether these measure have actually achieved their primary objectives.
1.5 DEFINITION OF TERMS
There are various forms of instruments used for import restriction they include the outright ban or prohibition of import high import duty or tariff the imposition of import quotas foreign exchange control invisible tariff in the form of complicated customers administration or the placing of specific commodities on license. These restriction are used either to shut out competition entirely or to give domestic producers significant cost advantage our foreign producers hence they are professionalist mechanism applied by government to achieve some policy objective import restrictions restrain the amount in (value or quality) of a commodity to be imported to curtain the value of imports in order to correct disequilibria in the balance of payments protest industries from foreign competition reduce unemployment prevent dumping of foreign goods in Nigeria market and consist of the following.
(a) BANS OR PROHIBITIONS: A banned commodity is a commodity whose distribution and consumption in a country is prohibited they are particularly foreign commodities or commodities/ deemed to be harmful to the citizen e.g. cocaine and wheat are banned from being imported into the country. Anyone caught importing such a good is a smuggler and is pursuable by law.
(c) IMPORT DUTY/TARIFF: They are taxes imposed on goods imported into a country by the government of the importing country the primary aim is to discourage imports while the secondary aim is that it serves as a government revenues the three types of this duty consists of Advalorem-tax on he value of the good in question of the good in question. Compound- a combination of the aspects of both duties above.
Here a specific amount of a commodity is imported free if any duty while imports above that amount are levied on import duty there is not revenue accrued by the government unlike the tariff.
Some specific commodities are placed on licence so that the number of people will be importing the commodity will be produced the commodity can only be imported by those who gave the licence.
COMPLICATED CUSTOMS ADMINISTRATION
These are invisible tariffs it emphasizes the formulates that an importer must go through and the conditions that must be satisfied before he qualifies as an importer these process are usually disclosed to him bankers which is the must important intermediary in international trade.