An Expository Study of the Legal Framework for the Regulations of Non-Oil Export in Nigeria

Description

ABSTRACT

An Expository Study of the Legal Framework for the Regulations of Non-Oil Export in Nigeria

Dr. Ezra Yakusak*

Non-oil export trade has been described as a catalyst for the overall economic development of a country thereby creating an avenue for raising the national income of that country. In Nigeria, various laws have been promulgated to control or regulate the non-oil export trade sector. However, despite the enactment of these laws and the institutional structures and policies set up by successive governments, the trade has performed below expectation giving reason to doubt the effectiveness of these laws. This paper therefore analyses the major legal mechanisms that have been established to regulate it with a view to ascertaining the extent of their efficacy and the flaws inherent in these statutory provisions. The study evaluates factors militating against the smooth implementation of the laws and recommends ways of curtailing them. The crux of this study is to argue for a robust export regime in Nigeria which will facilitate the formalization of non-oil export trade and boost the revenue of the country.

INTRODUCTION
It has been said that “a nation without exportable products remains, or is at best, a beggar nation”.₁ A nation therefore requires export to earn foreign exchange, increase external reserves and strengthen domestic economy.₂ A well-developed export sector will provide employment opportunity for the people with the attendant reduction in social costs of unemployment.₃ The need to engage in non-oil export therefore becomes imperative. Non- oil export trade serves as a catalyst for transfer of technology between nations and stimulates development by promoting a stable, healthy and prosperous economy.₄ It also encourages diversification of a nation’s economy and leads to increased market share which increases demand necessitating capacity utilization of industries.₅

While the need to promote non-oil export trade is germane on one hand, on the other hand there is the need to regulate non-oil export from Nigeria. Export regulation therefore is a term used to “cover all trade policy measures adopted by an exporting country to affect the flow of exports directly”.₆

Export regulation also includes federal regulations governing the export of materials, data, technical information, services and financial transactions.₇ Trade policies that constitute export regulations include export taxes, duties as well as statutory and administrative measures that have the same effect.

Historically, the concept of export regulation manifested during the World War 1.₈ During that period, it was necessary to ensure essential supply of raw materials, and many countries had difficulties in

* Ph.D, BL, FCIA. Legal Adviser/Board Secretary, Nigerian Export Promotion Council, Abuja

1. Export Watch Magazine (Nigeria, May/June 2010) Vol 2 No 1, P 33
2. ibid
3. Abogan, O.P; Akinola, E.B and Baruwa, O.I (2014) ‘Non-oil export and Economic growth in Nigeria (1980-2011) 3(1) Journal of Research in Economics and International Finance (JREIF) 1-11
4. Effect of International Trade on Nigerian economic growth accessed 10 July 2015
5. Odozi V. (2002) ”Resuscitating Nigeria’s Non-Oil Export Sector” Comet Newspaper (Nigeria, 24 Jan) 11
6. Rom M. and Weinblatt J (1985) Export Controls- An Institutional and Historical Perspective. In The Economics of Export Restrictions, Free Access to Commodity Markets and the NIEO, Westview Press Inc PP 196
7. Export Regulation.  accessed 17 July 2015
8. Rom M and Weinblatt J (n 6) 203

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW VOL.6 NO.3