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Thursday, 4 October 2018

The Nigerian Marketing structure



   Nigeria is a mixed economy. This means that both the government and private initiatives are involved in producing and distributing goods and services for the satisfaction of consumers in the country. In addition to engaging directly in the production and distribution of goods and services, the government also regulate the flow of business in nigeria through its feeding, laws and moral suasion or appeals to business organisation.

 In spite of dwindling earnings and directives from the international monetary fund to the contrary, government in nigeria is a big business. Government expenditure to a great extent determines the pace of business in the country. A great proportion of goods and services being enjoyed locally in nigeria and exported that in foreign exchange is produced directly buy government owned companies and institutions. The generation and distribution of electric power and water are being undertaken almost solely by the government. Some business such as National Electric Power Authority NEPA, Power Holding Company of Nigeria PHCN Nigerian Railway Corporation and Nigerian Airways are fully owned by the federal government. Some others are jointly owned by the government and nigerians of foreign technical partners. Though the government is invested from some of these businesses through the privatization policy between 1986 to date, it is still neck deep in commercial activities through its companies or parastatals.

The overall initiatives is greater than government initiative in the provision of goods and services in Nigeria. Investment from foreigners was greatly reduced as a result of Nigerian enterprises promotion decree popularly known as indigenization decree of 1972, amended in 1976 as revised in 1977. However, this decree was somehow replaced by 1995 Federal budget. Great efforts are being made to attract foreign investment into the country, most especially in the high technology manufacturing sector, not much has been achieved over the years because of the political destruction of the country and the facts that both government and private individuals and organisations still find it easy to import. A large proportion of the manufactured products in Nigeria are imported.

   Distributive trade in nigeria is mainly in the hands of the private sectors. Prior to the promulgation of the indignation decree, big time distribution wholesaling and retailing was mainly in the hands of foreigners, most especially the ubiquitous Labanese traders.  Government not sponsored distribution agencies, such as Nigerian National Supply limited and NNSL have failed to live up to explanation because of inadequate funding, too much interference by government, and the high corruption rate prevalent in the Nigerian society. Many business people have found the distributive trade more attractive than manufacturing. Government efforts to correct this seems to be yielding fruit. Nnewi fondly called taiwan of Nigeria which once specialised excessively in the distribution of goods, most especially motor spare parts, is noted by many high-technology manufacturing industries, thanks to the Structural Adjustment Program SAP of 1986.

  Though the goverment tries to use its law and agencies to control distribution business in Nigeria, its efforts have met an impregnable wall of resistance. Traders arbitrary increase prices, irrespective of manufacturers price directive and the efforts of the government to curb these excesses.

   The blame is put on the inflationary spending and practices of the government. If the government increases salaries and the charge of prices of it services and products, why should it discourage business people from doing same with their goods and services. In addition to this, and foreign goods such as stock fish, blue films, fabrics, and second hand clothes, shoes and bags are flagrantly being displayed for sale in the open market. The hues and cries of the automobile assembly plant and licensed importers of automobiles and spare parts to stop the infiltration or second hand vehicles and spare parts (popularly known as Belgium or Tokumbo) have remained unheard. People strongly believe that their very survival depends on those products from overseas, since there are no local alternatives, and the unused alternatives are unaffordable to them.

   There is need to mention that the few big manufacturing industries in nigeria are to a large extent concentrated in lagos and nearby towns, such as author, and to a small extent in port harcourt, kaduna, aba, nnewi and a few other big cities. The distributive trade was concentrated in the hands of aba onitsha and nnewi based business men. In the past. However, changes are gradually taking place as others are now getting more involved. It is also worthy of note that the biggest retail outlets in Nigeria are still owned and operated by foreign based firms, such as leventis, kings way, K.C chellarms,UTC,John Holt, Beta and Leonard.