Entrepreneurship: A Potent Trade Tool for Promoting Nigeria's Exports to the Eu

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ABSTRACT

In recent years, exports of commodities from Nigeria to different destinations seem to be assuming a declining trend. Against this backdrop, this paper takes a critical analysis of Nigeria's exports to the EU. The paper builds on the evolution of the economic links between Nigeria and the EU, first as a colonial entity under European powers and later within the framework of special trade relations between the EU and the Africa, Caribbean and the Pacific (ACP) countries.

The paper adopts various descriptive statistics as the analytical tools assessing the post-1960 trade relations between Nigeria and the EU.

Finally, the paper highlights some on domestically feasible measures to promote entrepreneurial development in Nigeria. It emphasises the role of entrepreneurship in fostering beneficial trade between the two partners.

INTRODUCTION

Entrepreneurial development is one of the most effective tools for ending global poverty and achieving sustainable development. Some of the economic benefits of entrepreneurship are:[l] Provision of employment opportunities. [2] Conservation of foreign exchange. [3] Promotion of effective domestic resource utilisation. [4] Promotion of effective domestic resource utilisation. [5] Equitable distribution of income and wealth. [6] Interdependence among businesses (Emmanuel, 2002).

Significance of the Study

The rationale for undertaking this study are stated as follows:

Drawing from the evolution of trade between Nigeria and the EU, the significance of this paper is underscored by the gravity of international trade for the Nigeria's economy. Since Nigeria, like any other nation, inhabits a global economic system and is therefore prone to the forces of the global economic environment, it has increasing tendency to depend on trade . Unlike such countries like Germany, Japan and USA, with comparatively less dependence on trade to the tune of 8 per cent, 10 per cent, and 8 per cent of their respective GDPs (Matambalya, 1999).

For a long time, the EU has been one of Nigeria's major trade partner, in terms of both the latter's exports and imports. While at the country level, Germany and the UK dominate Nigeria's export and import trade scene, in general, the EU countries as a regional community, are the country's major trading partners.

Partly in response to the conclusion of the Uruguay Round of Trade negotiations, and partly in response to the collapse of the cold war and convergence of international economic policies, Nigeria has since the mid 1980s implemented major reforms from a centrally controlled economic system to a market economy.

In addition, the shifts in the Multilateral Trading System (MTS) towards a more international trade policy convergence, will considerable influence the international trade prospects for Nigeria. In other words, the increasing significance of the study in the emerging trade paradigm is due to the interplay between the dynamics in the MTS and Nigeria's trade policy stance.

Objectives of the Study

This study is aimed at achieving the following objectives:

Discuss the changing trade relations between Nigeria and the EU,

Expatiate on the evolution of trade policy measures in Nigeria,

Discuss Nigeria's export incentive schemes,

Highlight the EU trade policy,

Discuss the elements of entrepreneurship,

Analyse empirically Nigeria's exports to the EU, in terms of magnitude and direction,

Explain the factors restraining Nigeria's Exports to the EU, and

Make policy recommendations towards promoting Nigeria's exports to the EU.

Organisation of the Paper

The introduction is followed by a review of conceptual issues. The third section presents an empirical analysis of Nigeria's exports to the EU. Section 4 dwells on the way forward and section 5 concludes the paper.

REVIEW OF CONCEPTUAL ISSUES

Evolution of Institutional Base for Trade Relations between Nigeria and the EU

In order to understand the economic relations between Nigeria and the EU, a proper comprehension of their historical setting is very relevant. …