CHAPTER ONE:
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Smuggling
can be defined as the clandestine importation and/or exportation of goods from
one place to another. The clandestine operation can involve the importation or exportation
of prohibited goods (e.g., drugs) or the evasion of customs duties on legal
goods that are liable to duty (e.g., cars, leather, furniture cloths, motor
parts etc.). Price disparities and differential customs duties between
jurisdictions or across different periods in time determine the likelihood of
smuggling (Defiem and Kelly, 2001:473). It is a criminal act and therefore, illegal
because most of the goods being brought in by the smugglers are banned goods.
It represents a deviation from social norms administered by a country
(Schaefer, 2001: 185). The main characteristic of crime is that it negates laws
enacted by the government, acting as the representative of the majority of the
people (Akinola, 1986: 8). This illegal act, smuggling, may be counted among
the oldest forms of deviance (Jütte, 1994).
Legislation
on smuggling dates back to at least 14th century in England, when the Statute
of Treasons of 1351 made it a crime to import counterfeit money.
From
then on, smuggling laws were gradually expanded to cover many other goods
(Defiem and Kelly,
2001:473).
Smuggling
of goods is often conducted for one or both of two reasons: to avoid excise
taxes, and to evade rules prohibiting the sale of such goods.
Smuggling severely harms the economy of a country in
multidimensional ways. It undermines the performance of the local industries,
discourages legal imports and reduces the volume of revenues collected from
duties and levies by the country. A
major proportion of the revenue to be collected by local industries and the
Government is being lost, over and above the adverse impact that the smuggled
items cause to our industries www.internetjournalofcriminology.com.
Thousands of industrial units have been rendered sick, due to
the availability of smuggled goods in open markets and Shops across the country
are flooded with smuggled goods of all descriptions.
Nigeria is
one of the developing countries of the world yet at the fringe of industries
development, but the huge internal market and the vast resources base -both
human and material are so formidable that local and foreign investors should be
tumbling over each other in advancing the pace of industrial development.
At this point
, one may ask, what are the restraining factors? First on the list of these
factors is smuggling which is the main research topic of this project.
One of the measures
taken by General Ibrahim Babangida, the former Military President of Nigeria
and also the regime of Gen. Sani Abacha to accelerate the growth and
performance of local industries was the widespread ban on importation of raw
materials and certain classes of goods which was seen to be detrimental to the growth
and performance of these local industries. This measure was generally welcomed
by the private sector and should have assisted local industries to grow and performed
better, if properly enforced.
There have
been reports of large scale smuggling of goods in and out of the country- smuggling
in recent times has become a regular feature of life in Nigeria and Nigerian’s
in their increasing numbers have been calling on the governments and citizens
to do this or that to save them from this curse that can lead to a retardation
of the much needed industrialization take off.
1.2 STATEMENT OF PROBLEMS
One major
problem militating against the growth and performance of our local industries
is smuggling of goods in and out of the country.
This has
prompted this research into finding the causes and ways of preventing it so as
to save our infant and local industries from the menace.
1.3
OBJECTIVES OF THE STUDY
The objective
of this study is to find out the ways of combating smuggling which is one of
the major factors retarding the growth and performance of our local industries.
It is also aimed at exposing the socio-economic implication of smuggling
and the need to boast performance of our infant and local industries
1.4 RESEARCH
QUESTIONS
To this effect, the following questions would be treated
in the course of this research work;
·
To what extent is
smuggling affecting the performance and growth of our local industries
·
Are there
solutions to this prevailing menace?
·
Can’t there be a
way of preventing smuggling which is one of the factors retarding their growth?
·
Which industries
most effected by smuggling?
All these questions would be taken care of in this
research work through efficient and effective conduct of this task by the
researcher.
1.5 STATEMENT
OF HYPOTHESES
For
valid and effective work on this topic, the following key research hypotheses
would be addressed in the course of this study.
There are two types of hypotheses, the Null hypothesis that takes the
negative form and the Directional or Alternative hypothesis that takes the
positive form.
Let
H0 stand for Null hypothesis
Let H1 stand for Alternative hypothesis
HYPOTHESIS ONE:
H0: There is no
correlation between smuggling and local industries performance
H1: There is a correlation between smuggling and local
industries performance
HYPOTHESIS TWO:
H0: Smuggling
activities do not affect the growth of local industries
H1: Smuggling activities do affect the growth of local
industries
HYPOTHESIS THREE:
H0: Smuggling
activities is not illegal
H1:
Smuggling activities is illegal
1.6 SIGNIFICANCE OF THE STUDY
This research
work will be of immense benefit to local industries suffering from the peril of
smuggling, and unfolding the socio–economic implications of smuggling, and the
need to check smuggling of goods which will serve as a catalyst in the
growth and performance of our local
industries.
It will also
be of help to business administrative students by giving them an insight of
some economic measure widening their knowledge in economic environment of this
country, and the role they could play in promoting and fostering the economic
status of this great nation Nigeria.
Finally,
other researchers could use this study as a launching pad to study into
other areas of economic problems.
1.7 SCOPE AND
LIMITATION OF THE STUDY
This study is aimed at investigating
the impact of smuggling on the performance of our local industries (Wood Works Furniture, Abuja)
was used as a model organization.
Because of resource constraints, Wood Works Furniture, Abuja,
was studied. All the department and
cadres of employees will be covered in the study to examine the impact of
smuggling on the performance of Wood Works Furniture, Abuja.
LIMITATIONS: The
researcher faced the problems of confidentiality. Wood Works Furniture employees
sometimes were not willing to give information. Although this problem was dealt with by the
researcher assuring members of staff that the information given will be used only
for research purposes and was to be treated as confidential. Another limitation
was Time. The researcher is a worker, a mother and also doubles as an entrepreneur.
Time is not always enough due to multiple events going on at the same time i.e.
home chores, lectures/preparation for exam etc.
Finally, financial
constraint was another problem faced by the researcher; money to buy books,
stay connected online, moving around to various libraries etc. was one of the
major limitations. But be it as it may,
the researcher gave the project its best.
1.8 DEFINITION OF TERMS
The following are the
definition of terms used in this study, they include;
The Gross Domestic product (GDP): This refers to the totality of the product of a nation
in a given period both agricultural and industrial.
Inflation:-
This is a period when there is a persistent rise in price where there is too
much money in circulation chasing few goods.
Contrabands:-
These are goods brought into or taken out of a country. This is a contrary to
the law (trade in) goods brought in or taken out.
Foreign Investors: - Foreigners who come into Nigeria and invest their capital in the
production of goods and services.
Infant Industry: an infant industry is a new industry, which in its
early stages experiences relative difficulty or is absolutely incapable in
competing with established competitors.
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