Impact of the Export Processing Zones on the Exportation of Cashew Nuts in Nigeria
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Impact of the Export Processing Zones on the Exportation of Cashew Nuts in Nigeria

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– Impact of the Export Processing Zones on the Exportation of Cashew Nuts in Nigeria –

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Abstract

This study was concentrated on assessing the impact of the export zones on the exportation of cashew nuts in Nigeria. The export zones and cashew nuts exporters who are investors in the zones are facing a lot of challenges which include poor implementation of incentives (tax holiday, free export and import licences etc,).

Poor infrastructural facilities (processing plants, water, power supply) and bad roads which resulted to the waste of tonnes of cashew nuts. Strong attempt was made to find out the contribution of cashew nuts exports revenue to the country’s GDP. Four hypotheses were formulated from research questions which were in line with the objectives of the study.

In research design, the survey method was adopted and primary data were collected by administering the questionnaire to respondents and interviewing them (management and staff of the export zones and cashew nuts  investors in three geo-political zones in Nigeria which gave a good representation of the country.

Also, secondary data were collected from CBN bulletin which were tested and was used to find out the contribution of cashew nuts export revenue to the country’s GDP.

Data were analyzed and presented using tables, means and percentages. The copies of the questionnaire were directed to a sample size of 185 persons which were deduced from a population of 1,950 using Taro Yamane formula.

Introduction

Nigeria as a developing country is known for producing and marketing of primary products. Its agricultural sector plays a significant role in the economy. It employs a high percentage of the labour force, and accounts for over a quarter of the GDP in spite of the dominance of oil.

The sector is crucial in national poverty reduction efforts. Agriculture remains important for the diversification of the economy, in particular, its export structure (Okoh,2004:51). Prior to the discovery of oil, agricultural exports generated over 70% of Nigeria’s foreign exchange earnings (Nwakama,1999:13).

Agricultural production is largely a private sector activity. According to Nwakama (1999), Government support to the sector is focused on: the supply of inputs, provision of extension services, stabilization of market prices for certain goods through a strategic reserve programme and provision of financial assistance at a limited level.

Exportation in Nigeria started before independence. In the decades of the 1960s and 1970s, Nigeria’s economy was dominated by agricultural commodity exports. Such commodities include cocoa, groundnut, cotton, rubber, palm produce, etc.

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