IMPACT ON NIGERIA IMPORT RESTRICTION ON THE ECONOMY
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IMPACT ON NIGERIA IMPORT RESTRICTION ON THE ECONOMY
INTRODUCTION TO CHAPTER ONE OF THE IMPACT ON NIGERIA IMPORT RESTRICTION ON THE ECONOMY
1.1 STATEMENT OF THE PROBLEM AND THE PURPOSE OF THE STUDY
Most developing countries, such as Nigeria, rely heavily on imports, and the economic impact of import restrictions has been severe. Because the economy’s standard of life is related to the rate of products imports into the country.
One of the most significant consequences of banning imports in a country like Nigeria will be a gradual decline in living standards. We know that its efficacy will have many negative consequences,
such as an increase in the death rate, a drop in population emigration, and other consequences that may arise later in the course of this project.
This study intends to identify the economic effects of Nigeria’s import restrictions and to discuss their impact on the industrialisation market and other commercial areas. Also, the amount and structure of these effects on the standard of living of Nigerians must be determined.
1.2 SIGNIFICANCE OF THE STUDY
This study, if successful, and the recommendations, can transform the country we lower rending this can systematically attract the much required condition to reduce poverty in respect to the influence of Nigeria’s import restrictions on the economy.
1.3 THE SIGNIFICANCE OF THE STUDY
This topic, the influence of Nigerian import restrictions on the economy, is so unique that it affects both the economy and the general public.
Running with the subject of import restrictions has both positive and negative consequences for our country. To the detriment of the community, it has resulted in an increase in the cost of purchasing what was formerly inexpensive, resulting in a high cost of living.
As a result of the positive influence it has had, our locally produced goods are now valued in our economy rather than being outsourced.
As a result, this study will be highly important to Nigeria, the economy, the general public, students, and anybody who comes across the material. And will be extremely beneficial to students who wish to pursue the studies.
1.4 BACKGROIUND OFTHE STUDY
The Nigerian economy has undergone structural changes over the last three decades, transitioning from a predominantly agricultural economy in the 1960s to an economy primarily reliant on oil since the mild 1970s.
As a result of the consumption to rationalise imports when the oil boom gave way to an oil glut, trade arrears emerged. As a result of jumbo loans obtained from the foreign capital market, a huge debt burden emerged in the early 1990s.
Most developing countries, including Nigeria, have adopted import substitution policies in order to become self-sufficient and to assist in the development of indigenous businesses that will require raw resources in order to produce these products, the majority of which are not locally available.
As a result, the industries rely heavily on imported raw materials, machinery, capital equipment, and general consumer goods. As a result,
a complementary development in the agricultural sector is required to provide the earnings required to finance the minimum level of imports required to sustain the continued growth of the local industries.
Unfortunately, the policies adopted to reserve the market for domestic products primary tariffs is some how based in its effects against production for export countries that rely on import substitution as a means of developing their economies the system of protection is adopted and consists primarily of the use of import restrictions
which take various forms including outright ban or total prohibition of imports high import duties or tariffs in the form of complicated custodial arrangements These restrictions are intended to either completely eliminate competition or to provide native producers a large cost advantage over foreign producers.
The scope of this article covers the years 1995 to 1999, with an emphasis on the impact of federal government limitations or measures implemented during these years, and whether these policies fulfilled their primary aims.
1.5. DEFINITION OF TERMS
Import restriction instruments include outright bans or prohibitions on imports, high import duties or tariffs, the imposition of import quotas, foreign exchange control, invisible tariffs in the form of complicated customer administration, and the licencing of specific commodities.
These restrictions are used to either completely eliminate competition or to provide significant cost advantages to domestic producers over foreign producers; thus, they are professionalist mechanisms used by governments to achieve some policy objective.
Import restrictions restrain the amount (value or quality) of a commodity to be imported in order to curtain the value of imports in order to correct imbalances in the balance of payments.
Protest industries from foreign competition minimise unemployment and prevent foreign goods dumping in the Nigerian market and include the following.
(a) BANS OR PROHIBITIONS: A banned commodity is one whose distribution and use in a country is restricted. These are typically foreign commodities or commodities deemed dangerous to citizens, such as cocaine and wheat, which are prohibited from being brought into the country. Anyone found importing such a product is a smuggler and is subject to legal consequences.
(c) IMPORT DUTY/TARIFF: These are taxes levied by the government of the importing country on items imported into the country. The primary goal is to discourage imports, while the secondary goal is to generate income for the government.
The three varieties of this duty are ad valorem-tax on the value of the good in question, tax on the value of the good in question, and tax on the value of the good in question. Compound- a combination of the above-mentioned duties.
QUOTA FOR IMPORT
Unlike tariffs, a set amount of a commodity is imported duty-free, but imports above that level are assessed on import duty, with no money accrued to the government.
IMPORT PERMIT
Some commodities are licenced so that the number of persons importing the item would be limited. The product can only be imported by those who were granted the licence.
DIFFICULT CUSTOMS ADMINISTRATION
These are invisible tariffs that emphasise the procedures that an importer must follow and the conditions that must be met before he qualifies as an importer. These procedures are frequently given to him by bankers, who are the most essential intermediaries in international trade.
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