PROTOCOL:
I wish to sincerely express my profound appreciation/gratitude to the learned Author of this book, my own brother and Nigerian Law School 91 call mate, Dr. Ezra Yakusak, PHD for the privilege to review this book. I have just finished reading and digesting a very wonderful book and I can say with all sense of satisfaction that the Author has done justice to this work. In my humble opinion, the book is the first comprehensive expositions on the law, policy and practice relating to Export promotion in Nigeria. As mentioned by the Author somewhere in this book, other Authors have made attempts to write on this important subject, but it does appear that there are vacuum in those works. This book has exhaustively filled that vacuum.
A comprehensive book on the law, policy and practice of Export promotion in Nigeria is very important at this stage of our national life. Our economy has depended for so long on oil revenue to the neglect of non-oil products. It is a fact that non-oil products were the mainstay of our economy before the advent of oil in Nigeria. Many industries particularly the agro-based industries were growing steadily in those days. The over dependence on oil revenue has led to the collapse of these industries. Consequently, Nigeria has become a dumping ground for foreign goods. Sadly, instead of diversification of the economy and consciously making efforts at industrialisation, we have remained a consumer nation up to date. There is no doubt that this book has been designed to re-awaken our consciousness towards the much needed diversification of the economy.
In this work, the author adroitly examines the law and policy regulations of export promotion in Nigeria and identifies the flaws and challenges associated with the implementation of these laws and programmes. The Author also dealt with other important germane issues like legal and institutional frameworks, policy frameworks, export support services, incentive regimes, standard trade conventions, emerging strategies, among others. The work proffered beneficial suggestions to promotional agencies in general and exporters in particular.
The book is divided into Eleven (11) chapters summarised as follows:
CHAPTER ONE
GENERAL INTRODUCTION
Chapter one of the book starts with the background of the subject of the study. The work reminds us of the post independence economic experience, during which non-oil products, particularly the Agricultural products were the mainstay of the economy and the resultant growth of industries in the country. At that time solid foundation for industrialization based on non-oil products was laid. However, when oil was found and with its boom, complete attention was shifted from the agricultural commodity led economy. The effect, as we are witnessing today, is the collapse of these industries; the neglect of non- oil products business; and Nigeria has become a dumping ground for foreign goods. Private participation in Exportation of non-oil products is very low in Nigeria as a result. The Author reminded us of attempts made by successive government to address the problems of over-dependence on oil and its related adverse consequences on the economy. According to this book, these efforts culminated in the promulgation of Nigerian Export Promotion Council (NEPC) Decree.
The NEPC Decree has undergone several amendments. The rationale behind setting up the NEPC was generally to stimulate the growth of non- oil exports by expanding the frontiers of exports to include primary, semi- processed and manufactured products. The sole responsibilities of NEPC are as contained in Section 4 (1) and (2) of the Act.
To actualize the Federal Government readiness to formulate and implement policies on export promotion and the diversification of the economy in Nigeria, the Federal Government in 2004 launched what is called the National Economic Empowerment and Development Strategy (NEEDS) as the National Development Policies.
With the establishment of various National Development plans by State governments and the setting up of NEPC and other trade promotion organisations, the concept of Export promotion was formally introduced into the Nigeria’s economic and legal sphere. To this end, various laws governing the promotion of non- oil export were enacted to motivate and sensitise producers and exporters on the need to ensure competitiveness of made in Nigeria products in international market and to guarantee high returns on investment in the non-oil export business.
Inspite of the establishment of various Agencies, formulation of laudable policies and putting in place legal framework, Nigeria’s contribution to global trade in terms of exportation of non- oil products remain very low. The author gave reasons for this problem as follows:-
- Many exporters are not either conversant with the laws and government policies guiding international trade or it could be a case of being confronted with the cumbersomeness associated with the procedure and documentation.
- On the part of the government, the laws on export promotion are sometimes not enforced.
- Many traders still engage in informal (unrecorded) exports without registering with the appropriate authority.
- Lack of funds for agencies set up by the government to implement policy on exports and lack of political will to implement programmes.
The work draws our attention to the fact that published materials on export promotion are not as many as in other fields. Some authors who have previously attempted to write on the subject only concentrated on specific areas of export promotion. The Author referred to the work of Ndibe C. O and Adulugba D. I, to mention a few. The author also referred to works of foreign authors on the subject and the relevance of their works to Export Promotion in Nigeria.
CHAPTER TWO
CONCEPTUAL CLARIFICATION OF KEY TERMS:
For proper understanding and comprehension of this work, the work defines and examines in very simple language some key terms used in the work.
Some of these key terms are:
a. Export promotion:
According to the Author, Export Promotion involves regulated programmes and activities meant to facilitate and stimulate promotion of export trade or transactions. It is basically a strategy for promoting economic growth and development through non-oil export trade.
b. Trade Promotion Organisations (TPOs):
Trade Promotion Organisations are various institutions established by statutes to develop and implement the country’s export promotion and development polices. As explained by the Author in this book, some of these institutions have export trade promotion as their primary objectives while others have secondary responsibility to promote Export trade.
c. Free Trade Zone:
A free Trade Zone or free zone is a designated industrial area within a geopolitical area of a country in which financial obstacles to export trade are removed or reduced to a minimum. It involves fiscal exemption and other incentives to encourage and stimulate export trade.
d. Trade Facilitation:
Trade facilitation refers to various measures put in place for smooth and seamless export trade. It includes removing obstacles to movement of goods across borders.
e. Export control:
This is the policy measures adopted by an exporting country to affect the flow of exports directly. It is the regulations governing the export of materials, data, technical information, services and financial transactions. Trade policies and regulations that constitute Export Control are the imposition of quantitative limitations (including prohibitions) export taxes, duties as well as administrative measures that have the same effect.
f. Export Diversification:
Measures to expand and diversify export trade by encouraging production of other commodities for export. It takes the form of adjustment in the Country’s export mix by adding new products on existing export basket within the same sector and the shift from the primary to the secondary sector or processed products.
g. Export incentives:
Export incentives is a government programme put in place to encourage exporters in export trade. It takes the forms of monetary, tax or legal incentives designed to encourage export transactions.
CHAPTER THREE
LEGAL AND INSTITUTIONAL FRAMEWORK FOR EXPORT PROMOTION
Chapter three of the work deals with legal and institutional framework for Export Promotion. The work made us to understand that the Legal framework are the various laws enacted by the National Assembly to regulate export promotion activities in Nigeria. It is without argument that the body vested with the power to make laws on Export Promotion is the National Assembly in view of the fact that export transactions fall within the exclusive legislative list contained in the 2nd Schedule to the 1999 Constitution of the Federal Republic of Nigeria (as amended).
Pursuant to the various laws on export trade, institutions were created for the purpose of implementing Export trade programmes. These institutions are commonly referred to as Trade Promotion Organisations (TPOS). Though, there are several of these institutions, the underlying primary objective for all of them is to assist the country in export promotion activities.
The Author explained that Export Promotion institutions or agencies can be categorised into three.
- Those institutions that are directly engaged in Export Promotion activities as their core and primary functions. Under this head, we have Nigerian Export Promotion Council (NEPC), State Committee on Export Promotion, Nigerian Export Import Bank (NEXIM) and Export Credit discounting and Refinancing Facility. Others are Foreign Input Facility, Local Input Facility (Export Trade Support Facility, Stock Facility and Nigerian Export Processing Zones Authority (NEPZA).
- The second category are the institutions whose functions have direct bearing on the performance of the export Sector. Under this category, we have institutions such as Standard Organisation of Nigeria (SON), National Agency for Food and Drug Administration and Control (NAFDAC), Central Bank of Nigeria (CBN) and Nigerian Investment Promotion Commission (NIPC).
The work carried out thorough examination and analysis of these institutions and their statutory functions. It therefore serves no useful purpose to summarise those functions in this review.
However, at the concluding part of this chapter, the Author informed us that various institutions mentioned above lack coordination in their interrelated activities. Instead of complementing each other, there appears to be subtle rivalry among the trade promotion institutions. This situation partly accounts for the slow growth of non-oil export in the country. The work suggests for effective mechanism to co-ordinate export related institutions and organisations.
CHAPTER FOUR
POLICY FRAMEWORK
In chapter four, the work examines and reviews the extant policy frameworks which are targeted towards non-oil export trade. These policy frameworks as identified by the Author are;
- Nigeria Trade Policy;
- Export Promotion Policies
- Export strategy and National Policy on food safety.
- Nigerian National Quantity Policy
- National Enterprises Development Programme (NEDEP)
- Nigerian Industrial Revolution Plan
- Standard and Trade Development Facility (STDF)
- Economic Recovery and growth plan
- Zero Oil Plan.
- Nigerian Office for Trade Negotiation (NETN).
These policies are as a result of conscious efforts of the Federal Government towards the diversification of export trade. The Author lamented that inspite of these laudable policies, the performance of non-oil sector is still unimpressive. He attributed this to lack of implementation of the policies and lack of continuity in the implementation of the policies. The work suggests that a culture of continuity should be established in order to achieve sustainable economic transformation. It is further suggested that adequate attention should be paid to the acquisition, adaptation, utilisation and maintenance of existing technology and infrastructure.
CHAPTER FIVE
EXPORT SUPPORT SERVICES:
Non- oil Export Trade, unlike domestic trade requires compliance with formalities and documentation. An Exporter or intended Exporter is expected to comply with these formalities before Export trade can be embarked on. The Author pointed out in this chapter that many Exporters have limited knowledge of these formalities and documentation. To encourage the ease of doing Export trade, NEPC Act mandates the Council to provide information on export procedures and documentation, export costing and pricing, quality control techniques and export packaging, among others. These services required to facilitate export promotion programme is what is termed as Export Support Services. In this Chapter, the Author explained in details various Trade Promotion Organisations (TPOs) responsible for trade facilitation and the provision of export support services. The Author also educates us on formalities and documentation requirements for export trade. These include:
- Export Facilitation, procedure and documentation.
- Export financing
- Export Credit Insurance
- Export Packaging
- Export costing and pricing
- Legal issues and handling controversy
The Author said that as a result of cumbersomeness involved in the documentation and obtaining necessary permits/certificates, efforts have been made, both at the international and domestic levels, to simplify and harmonise international trade documents. In Nigeria in particular, a body called Nigeria Committee on Trade procedures was set up to handle this harmonisation.
CHAPTER 6
EXPORT CONTROLS AND REGULATIONS:
In this chapter, the work examines some of the laws enacted in Nigeria to regulate non-oil export trade. These laws and regulations are intended to guide the exporters and ensure compliance as to standard, quality, packaging etc. Certain goods prohibited for export are also examined. The legislations examined by the Author are;
- Nigerian Export Promotion Council Act,
- Export Prohibition Act,
- Export (Incentives and Miscellaneous Provision) Act,
- Produce (Enforcement of Export Standards) Act,
- Pre-shipment Inspection of Export Act,
- National Agency for Drug Administration and Control Act.
- Nigerian Custom Service Act ,
- Standard Organisation of Nigeria Act, and
- Foreign Exchange (Monitoring and Miscellaneous Provisions) Act.
The work draws our attention to some draw backs inherent in the various laws enacted to regulate export trade in Nigeria. consequently, the Author recommended that the responsibility of promoting non-oil export should be assigned to a single institution instead of multiple institutions. He also suggested that an inter-institutional co-ordination committee be established to identify issues militating against the enforcement of non-oil export laws; that such committee should also be charged with the responsibility of collating and harmonising the extant laws on non- oil export control and regulations. He went further to suggest that Agencies responsible for promotion of non- oil export trade should embark on sensitisation of exporters and other stakeholders on non-oil export requirements as provided in various laws.
CHAPTER 7
INCENTIVE REGIMES:
Chapter 7 of the work contains the outline of the incentive regimes that have been put in place to encourage export of non-oil products from Nigeria. These laws are targeted at boosting non- oil export sector. The Author also made us to understand that there are several non- statutory incentives put in place to boost non-oil export sector.
The work observes that although adequate incentive regimes are in place to encourage Exporters, most Nigerian Exporters are not benefiting from these incentives. He attributed this negative trend to inadequate implementation of relevant laws, lack of adequate publicity of the existence of the incentives and constant intervention by various government agencies bothering on the operation of non- oil export incentives. He further observed that the policy and incentive regimes as presently constituted are elitist and monopolistic and lead towards empowering only the foreign multinationals. The Author remarked that the non-implementation of non- oil Export incentive regimes has led to low non-oil export patronage by Nigerians, thereby increasing unemployment, technological stagnation and lowering Nigeria’s foreign exchange earnings.
CHAPTER 8
STANDARD TRADE TERMS
In chapter 8 of this work, the Author examines the various international contract terms otherwise referred to as INCOTERMS, which are universally used in international trade. The Author examined each specific term by highlighting their merits and demerits. The Author made us to understand that the Incoterms rules are accepted international trade. The work focuses attention on FOB (Free on Board) and CIF (Cost, Insurance and Freight) contracts. Other Trade terms examined by the Author are FAS contracts (Free Alongside Ship), Delivery Duty Paid (DDP), Carriage Paid to (named place of destination) – (CPT), Carriage and Insurance Paid to (named Place of destination) (CIP) and Delivery at Place (DAP). Others are Delivery at Terminal (DAT) and Free Carrier (FCA).
It is the suggestion of the Author that the choice of any Incoterm is at the discretion of parties to the contract. He advised that a thorough evaluation of the implication of the Incoterms is necessary before the choice is made. The Author concluded that in view of the provision of Paragraph 10 of the Export Guidelines in Nigeria issued by the Federal Ministry of Finance vide circular dated 20th April, 2005, which require all Nigerian Exporters to pay an administrative charge of 0.5 percent of FOB value of their intended export consignment, the only choice available to a Nigerian Exporter is the FOB model. The provision seems to have restricted the choice of Incoterms to FOB model against ten other Incoterm which may be equally appropriate to the exporters in Nigeria.
CHAPTER 9
INTERNATIONAL TRADE CONVENTIONS
Export trade, although an individual private business, is governed by International Trade Conventions. In this chapter, the Author examines various international trade conventions which have direct impacts on non-oil export trade. The conventions considered by the Author are in three categories; (i) International Conventions (ii) Regional Conventions and (iii) Sub-regional Conventions. International Conventions examined by the Author are World Trade Organisation (WTO), Convention on Contract for the International Sale of Goods (CISG), United Nation Commission on International Trade Law (UNITRAL) Global System of Trade Preferences Among Developing Countries (GSTP), and Trade Investment Framework Agreement (TIFA).
The Author also considered the position of Africa Economic Community Treaty (AEC Treaty) as a regulatory International Trade agreement between African Countries. Sub-regional Trade Treatise examined by the Author are the Treaty setting up Economic Community of West African States (ECOWAS).
CHAPTER 10
EMERGING STRATEGIES:
A virile export promotion strategy is dynamic, flexible and tailored to suit current economic realities. In Chapter 10, the work identifies and examines contemporary export promotion strategies, which have been used or are currently in use in promoting non- oil exports. These strategies or concepts include Export Production Village Initiative, Common Facility Centre Project, Export-led Poverty Reduction Programme, Bridges Across Borders, Export Warehouse Scheme, etc. The Author did a comparative analysis of these strategies/programmes in selected trade promotion organisations for the purpose of ascertaining their efficacy or otherwise in promoting non-oil exports in Nigeria.
The Author advised that various trade promotion agencies should embrace these emerging strategies in order to stimulate the non-oil export promotion initiative of the government.
CHPATER 11
SUMMARY AND RECOMMENDATION
Chapter 11 of the work contains summary of the discussion made in the main body of the book. The book identified many challenges militating against the growth of Export trade in Nigeria. The first is the high cost of local production and the challenges associated with doing business in Nigeria generally. He attributed this to high cost of corporate borrowing, insufficient and unreliable supply of electricity, water, telecommunication services, petroleum products and constraints at ports and habours and other infrastructural defiencies as obstacles to effective export promotion. Other challenges are insecurity of life and property, complicated and costly ports and custom clearance procedures including multiple taxation and unavailability of a one- stop shop for information and assistance in export matters.
The work recommends that in view of these challenges, there is urgent need to remove the systematic and endemic constraints hampering the growth of Export in Nigeria. Infrastructural deficiencies should be addressed and bottle-necks in government administration associated with regulation, control and operation of export should be eliminated.
The work further identified inconsistent government policies and lack of continuity arising from change of government as another factor hampering the growth of export promotion in Nigeria. That most of the export promotion programmes/policies and development strategies remain mere policy statements, without practical implementation. In this regard, the work recommends a stable and predictable policy environment at all levels. Deliberate efforts should also be made to implement policies on Export promotion.
Another problem discovered by the work is the fact that Nigerian products, both primary and manufactured are traded between Nigeria and other countries without records. This unrecorded transactions create discrepancies between export data of Nigeria and import data from Nigeria as recorded by trading partners.
The work recommends that there should be a deliberate government policy to track and make record of export transaction. He advised that the exporters should form association for the purpose of attracting government assistance. He also emphasised on the need to cooperate and collaborate with the countries where such Nigeria products are informally exported.
Another serious challenge identified by the work is weak institutional structures and lack of adequate funding to enable the institutions implement the policies on export promotion. In this vein, the work suggests adequate funding for the TPOs, particularly for NEPC. The work further suggests the establishment of inter- ministerial forum where all agencies in the export promotion business meet to review the performance of non- oil exports.
Other recommendations by the work are:
Appropriate legal measures be put in place to safeguard the interest of exporters and products against the influx of imports and unfair trade practices like dumping of foreign goods in Nigeria.
Exportation of substandard products affects the growth of Export trade and the image of the country. The work therefore recommends the strengthening of manufactured and packaged goods and to comply with international market entry requirements and standards set by the regulatory bodies and that a law should be enacted to set the minimum package standard for each exportable product from Nigeria.
The work also discovered that among the several incentives mentioned in this work, only one is available to be accessed by the exporters. Others are moribund and have been abrogated or amended by policy statements of government. It is recommended that efforts should be made to improve on the existing incentive regime and to resuscitate the moribund ones.
The work finally recommends that NEPC should embark on aggressive promotion and development of non- oil export to serve as panacea to the sustainability of the Nigeria economy. To this end, the work advised NEPC to reposition itself to access emerging markets through articulated programmes with specific and measurable targets for short, medium and long term. That the NEPC’s technical capacity be strengthened to provide trade information services to export firms, advisory service in export quality management, packaging and labelling, effective participation in trade fairs and to advise the government on export promotion.
LADIES AND GENTLEMEN, the Author continues to lead us from the front with this inspiring and thought-provoking work. Given the Author’s background as an accomplished intellectual with many years in private and public service, I am not, in the least, surprised by the uncommon intellectual prowess exhibited in this work. He demonstrates an unparalleled knowledge of law and practice of export promotion by the examination and analysis of relevant regulatory regimes, institutional frameworks, policies and programmes put in place to facilitate export promotion in Nigeria. The simplicity of language and his style and approach to analysis of issues is commendable. The book is an important addition to the jurisprudence on the law and practice of Export promotion in Nigeria. it is indeed a veritable contribution to the existing works on the subject. There is no doubt that the book will be useful to policy makers on export promotion, commercial lawyers and other stakeholders in the non-oil export business. Certainly, making judicious use of this book will promote the ease of doing export business in Nigeria. I have no hesitation whatsoever in recommending this book to the general public.
Thank you and God bless you.