COMPARATIVE ANALYSIS OF THE EFFECTS OF THE FEDERAL GOVERNMENT IMPORTS DUTY POLICIES IN NIGERIA IN THE YEARS 1990-1995

Abstract

The study investigated the positive performance in finding solutions to the problem aecting our country Nigeria Economy. For the purpose of this research, approachable primary and secondary source of data were used including seeking of the opinion of scholars and personalities in relation to these areas. Due to the nature of the project the researchers depended only on the secondary source of materials, though primary sources such as questionnaire and personal interview were utilized. Based on the Analysis, findings emerged, recommendation made, the researchers believe that of if the above are implemented, they will yield for reaching results in respect of the subject of the study.

CHAPTER ONE

INTRODUCTION

1.1 Background of Study

The Nigeria Economy has undergone structural changes in the past three decades form a freedom agriculture economy in the 1960’s to an economy mainly reliant on oil from the mid 1970’s. The phenomenal growth in earnings in the mid 1990’s was not fully internalized into the economic system. The result was that the consumption production pattern became largely import oriented inability to rationalize imports when the oil boom gave way to oil glut led to emergence of trade arrears. A great debt burden also surfaced from 1978 to the early 1980’s as a result of Jumbo loans from the international capital market external debt outstanding shot up drastically from us $593.6 million in 1976 to us $2.2 billion in 1978? Thereaer, the spate of borrowing increased with the entry of state government into large external loan contractual obligations.

Thus, by 1983, the total external debt stock was us $18.6 billion in 1986. It rose further to us $29.4 at the end of December 1994, the pursuit of an over-valued exchange rate policy. The subsequent relegation of the agriculture sector to the background; heavy public sector spending and the huge over, hang; all combined to create distortions in the production, consumption and payment patterns. The precipitation decline in oil earnings in the 1990’s necessitated a policy redirection, aimed at realigning the domestic production pattern with the local resources base. Most less developed countries including Nigeria have turned to import-substitution policy in order to become self reliant and to help develop indigenous industries that we need raw material in order to produce these products. Most of these imputes are not availability locally, consequently. The industries depend heavily on imported inputs of law materials, machinery, capital equipments and the consumer goods. Generally speaking, a nation volume of import is a positive function of its imports and its income tall, it is import will also fall. This relationship is made intuitively apparent by considering the two great components of income in the economy: investment expenditure and consumption