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Monday, 1 October 2018

Economic History of Nigeria

For the purpose of analysis, the economic history of Nigeria can be divided into three phases : The pre-colonization, during colonization and post independence.

Pre-colonization :

       Marketing was construed as more trading, that is buying and selling in Nigerian. This means that those who engage in production did not feel that they needed to find what consumers needed before production was done. They just produce what they felt people should buy and brought the products to the market. People had to buy because they had no choice alternatives from competitors. Where people did not really feel a strong enough need for the product, to make them to buy the seller employed tricksters common acrobats and magicians to play on the intelligence of the prospects to make them buy.
       Generally speaking, people do not have to go far to buy the goods they needed. Transportation and communication facilities were poor. Anything which could not be obtained from the local market was either made or forgotten. But if you trade that route existed to link people to some big trade centres where people from far and near could meet to buy and sell articles which could not be obtained locally. Such trade centres include Onitsha which had a very large market, Ibadan and Kano. However, traveling far was much limited because of inter tribal wars, feuds, slave trade, and prevent ritual murderers of strangers. These factors generally hinder the development of trade between communities.

During colonization :

       During the period of Nigeria's colonization, the practice of commerce to a large extent remained as before. The major changes were the increased mobility made possible by the unified government or central administration and the imported goods brought by the colonialists.
        Britain colonized Nigeria in order to use her as a source of cheap raw materials for british industries as well as outlets for the manufactured products. After the industrial revolution, large manufacturing industries sprang  up in british and other european countries. Raw materials becomes scarce as different products also became saturated as the different manufacturers turned in their products. Is there for beginner surrey to look for cheap sources for raw materials and market for the finished goods overseas. After Nigerians colonization, she was partitioned into three areas for the purpose of specialisation based on natural blessed raw materials production. The north produce groundnut, cotton e.t.c., the west produced cocoa, and the east produced farm product. These produce eventually became very important cash crops to the people, many of who abandoned their traditional subsistence farming. Others become produce dealers. They brought produce from the local farm and sold into the white merchants or representatives of show me the manufacturers abroad.
Roads were developed to link the produce areas with the extensive North-South railways used for evacuating the produce to the sea ports, from where they are shipped abroad. The same routes were used for bringing in the manufactured goods from Britain to Nigeria. At first, the people rejected the imported goods which were mainly ostentatious such as mirrors, packaged cigarettes, jeans and clothes. But the people later second when freaks and guns were used on them. There local genes became illicit gins so that the imported ones from britain could sell. Eventually, the people's tastes were changed. The imported goods became status symbols. Imported goods flooded the markets, and people but same with the increasing proceeds from their cash crops. The locally made goods they wants prided themselves in became imitation, Why the imported ones became superior and original goods. Thus, Nigeria was economically colonized.
        it is worthy to note that throughout the period of Nigerians colonization, not much was done to establish the manufacturing industry. Virtually all the manufactured products consumed in the country were imported. The importation and major distribution of these goods were almost totally in the hands of the foreigners, most specifically, Lebanese. The service sector, such as banking, transportation, advertising, insurance, clearing and forwarding atc were also dominated by foreigners. Because the brand of products were being sold as well as their distributors were few, not much competition took place. Consequently, consumers were not well served. The main problem was how to produce or get the goods to go round. Not much of marketing took place throughout the period of Nigerian's colonization.

Post Independence :
        after independence in 1960, spirited efforts were made by the nationals to correct some of the inadequacies in the economy. A few lights manufacturing industries were set up. At first, the cash crops developed by the colonialist were promoted for any foreign exchange. Letter crude oil exports became the major of the foreign exchange. The oil boom of the early 1970s and counted conspicuous consumption. But the increased consumption was mainly that of imported products. The government entered into partnership with a few foreign companies for the production and or assembly of their products locally. The local contents of these products were to be increased gradually until their products would be fully produced with locally sourced materials and technical manpower. The concept of transfer of technology was also forced transportation and communication were greatly improved upon from the 70s. A few multinational companies established production and distribution facilities in nigeria at this period, in order to take advantage of the increased consumer spending arising from the oil boom.
 the few multinational companies that establish production and distribution business in the country from 70s brought in some elements of their marketing practices at home Into Nigeria. Increasing competition in the eighties and nineties has forced some of these and other few companies to adopt the marketing concept. Today, the marketing concept is to a large extent in practice in some industries as beverages, detergents, soaps, cosmetics, plastics, and entertainment industries among others.