Trade Reforms Policy Impacts on Non-Oil Exports in Nigeria

11960 Words48 Pages
CHAPTER ONE INTRODUCTION 1.1 Background to the Study Trade policy is defined as, a government's policy controlling foreign trade and the central objective of trade policy is to provide protection for domestic industries and reduce the perceived dependence on imports; a corollary to that objective was a desire to reduce the level of unemployment and generate more revenues from the non-oil sector. Non-oil export sector in Nigeria constitutes products of agriculture, industry and services that are exported by Nigeria (Ojowu, 1989). Agriculture is the primary non-oil product sector, which provides food, and fiber for the economy, while industry, as the modern sector, produces manufactured goods. The non-oil export sector of the Nigerian…show more content…
1.2. Statement of the Problem Non-oil exports are made up of the agricultural sector, manufacturing sector and the service sector of an economy. Nigeria, like many other developing economies has over the years pursued the objective of accelerating the rate of development in the economy in a bid to transform into a developed country. The economy held so much hope for attainment of such goals within a short period of time and this was even before the advent of oil as the main export commodity. These potentials were so much that Nigeria was seen to becoming the most industrialized African economy within a short period of time. The foundation of these potentials was laid by the agricultural sector which effectively and efficiently played its traditional role which economic theory predicts it should play in the path of economic development. According to Johnston and Mellor (1961), the roles are as follows; Product contribution (source of food), Market contribution (buying and selling to earn a living), Factor contribution (serves as raw materials for industries) and Foreign exchange contribution (through exportation). Despite the prominence of the oil sector in the past three decades, agriculture remains arguably the largest and most important sector as its contribution to the gross domestic product has remained stable between 30 and 42 percent, also it employs about 65 per cent
Get Access