EFFECT OF UNCONTROLLED IMPORTATION OF AVAILABLE RAW MATERIAL INDIGENOUS INDUSTRIES IN SOUTH EAST OF NIGERIA
ABSTRACT
This research work, examined the Effect of Uncontrolled Importation on Indigenous Industries in South East of Nigeria. The objectives of the study include to: investigate the extent uncontrolled importation of available raw materials has affected the three selected indigenous industries in the south east of Nigeria, ascertain the effect of uncontrolled importation of available raw materials on sales turnover of the three selected indigenous industries in the south east of Nigeria, determine the relationship between uncontrolled importation of available raw materials and profitability of the three selected indigenous industries in  south east of Nigeria and examine how uncontrolled importation of available raw materials affects customer turnover of the three selected indigenous industries in  south east of Nigeria. The research method adopted by the researcher was the survey research method. The major instrument of data collection was the questionnaire. The sources of data used were the primary and secondary sources of data. The population of the study was 1054 while the sample size of 290 was determined using the Taro Yamane’s formula. The data collected was presented in tables of frequencies, percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings include that uncontrolled importation of available raw materials affects the three selected indigenous industries in  south east of Nigeria to a large extent, uncontrolled importation  of available raw materials does not have a positive effect on sales turnover of the three selected indigenous industries in the south east of Nigeria, uncontrolled importation of available raw materials has a significant relationship with profitability of the three selected indigenous industries in the south east of Nigeria and uncontrolled importation of available raw materials does not have a positive effect on customer turnover of the three selected indigenous industries in the south east of Nigeria. The researcher therefore concludes that uncontrolled importation does not have a positive effect on indigenous industries in south east of Nigeria. It was then recommended that government should encourage indigenous industries in Nigeria through favourable policies, sales turnovers of the indigenous industries should be looked into as it has a relationship with the survival of their business, owners of indigenous industries should equally consider the net profit of their business and customer turnover of indigenous industries should be considered through controlled importation of goods.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                        
1.9    Operational Definition of Terms                    
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.2     Theoretical Framework of the Study                

2.3    Historical Background of the Study                
2.4     Empirical Review                             
2.5 Summary of Review of Related Literature            
2.6 Gap in the Review of Related Literature             
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1    Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                        
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.3.4 Research Question Four                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.4.4 Test of Hypothesis Four                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
4.5.4 Discussion Based on Hypothesis Four            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for further Research                
List of References                             
Appendix                                    
Questionnaire                                
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
    The past and present administration in Nigeria in their effort to redirect the country’s economic policy reform and technology seem to be yielding very little result (Essien, 2013). The reason for that can be attributed to the country’s over-dependence on imports, rather than exports. Nigeria being blessed with abundant natural and mineral resources. The country has so many thick forests with timber, but we import both toothpicks and matches. We are blessed with rubber, but we import tyres, we are blessed with iron and steel, but we important cars, we are blessed with fertile lands for planting various crops, but we import rice, tin tomatoes etc. we are blessed with hides and skin, but we import leather shoes. Even when it is confirmed that some Aba made shoes have the same and better quality with their foreign counterparts, instead we prefer to patronize the foreign goods. As a matter of fact, the least household item in Nigeria is imported.
    Nigerians have developed this penchant for foreign goods. It is disheartening and it beats my imagination to see that Nigerians use foreign goods to show off their class in the society. Okigbo (2014), noted that the dependence of Nigeria on imports for a great part of her consumption expenditure and all her capital expenditure has been total. Nigeria cannot be weaned from this dependence on imported goods over-night. In such an import bound economy, creating a self-reliant economy becomes a project of longer duration than is suggested by the platitudes often proclaimed by our policy makers.
    In the words of Dahlman (2014), technology from virtually every part of the world has been imported and applied in an effort to develop African continent,. The key, as it is often argued lies in the development of indigenous industries and equipment making are elements of national level technological capability, but our position today, is over-services. For both developing and developed countries, indigenous industries play important roles. Indigenous industries create employment opportunities, enhance regional economic balance through industrial dispersal and generally promote effective resource utilization considered critical to economic development and growth.
    Babawale (2013), posits that some indigenous industries are categorized under small scale commence business. It also has a simple management structure resulting from the fusion of ownership and management by one person or very few individuals as well as revolves around the owner-manager, rather than as a separate corporate entity. Informal employer-employee relationship is one of the characteristic features of this all important industries. As a matter of fact, these industries create employment opportunities for rural dwellers and mitigate rural-urban migration and resource utilization. It also serves dispersed local markets and produced goods with low scale economy for niche markets, and is widely dispersed throughout the country because of accessibility to raw materials, and it fosters development and the promotion of self-reliance through the utilization of local talent.
    Atteh (2013), asserts that the pivotal roles of indigenous industries notwithstanding, there are certain factors militating against their development and continuous emphasis on importation of foreign goods and services, import dependent processes and factors, limited access to financial capital, lack of encouragement by the government through various policies on rural development etc.
    However, empowering indigenous industries helps communities to value their own knowledge and appreciate what they can do for a living. It also affords them the opportunity to learn and expand their horizon as well as reducing to learn and expand their horizon as well as reducing income inequalities and rectify other social inequalities of the majority of the rural people. Onwuejueogwu (2011), also noted that for the Nigeria economy to make any meaningful progress technologically, we have to frown at over dependence on foreign goods after many decades of freedom from the colonial masters. It is based on this assertion that this research examined the effect of uncontrolled importation on indigenous industries, with three selected industries in the south east of Nigeria as a case study.
1.2    Statement of the Problem
    The effect of uncontrolled importation on indigenous industries in Nigeria, could be devastating. It could lead to decline in sales turnover of the indigenous industries. The indigenous industries do not have the technological know how and financial muscle to compete with foreign companies and coupled with Nigeria’s penchant for foreign goods, it has negatively affected the sales turnover of indigenous  industries.
    Furthermore, decline in profitability is another effect of uncontrolled importation on indigenous industries. This is as a result of decline in sales and the fact that the indigenous industries are forced to bring down the cost of their products to compete with foreign products.
    Finally, increase in customer turnover, is another effect of uncontrolled importation on indigenous industries. This is as a result of their customers patronizing more off the foreign goods than those of the indigenous industries..
1.3    Objectives of the Study
The general objective of the study was to examine the effect of uncontrolled importation on indigenous industries in south east of Nigeria. However, the specific objectives include to
1.    Investigate the extent uncontrolled importation of available raw materials has affected the three selected indigenous industries in the south east of Nigeria.
2.    Ascertain the effect of uncontrolled importation of available raw materials on sales turnover of the three selected indigenous industries in the south east of Nigeria.
3.    Determine the relationship between uncontrolled importation of available raw materials and profitability of the three selected indigenous industries in the south east of Nigeria.  
4.    Examine how uncontrolled importation of available raw materials affects customer turnover of the three selected indigenous industries in the south east of Nigeria.
1.4    Research Question  
Based on the objectives of the study, the following research questions were raised.
1.    To what extent has uncontrolled importation of available raw materials affected the three selected indigenous industries in the south east of Nigeria?
2.    What is the effect of uncontrolled importation of available raw materials on sales turnover of the three selected indigenous industries in the south east of Nigeria?
3.    What is the relationship between uncontrolled importation of available raw materials and profitability of the three selected indigenous industries in the south east of Nigeria?  
4.    How does uncontrolled importation of available raw materials affect customer turnover of the three selected indigenous industries in the south east of Nigeria?
1.5    Statement of Hypotheses
Based on the research questions, the following hypotheses were formulated.
Hypothesis One
H0:    Uncontrolled importation of available raw materials does not affect the three selected indigenous industries in the south east of Nigeria to a large extent.
H1:    Uncontrolled importation of available raw materials affects the three selected indigenous industries in the south east of Nigeria to a large extent.
Hypothesis Two
H0:    Uncontrolled importation of available raw materials does not have a positive effect on sales turnover of the three selected indigenous industries in the south east of Nigeria.
H1:    Uncontrolled importation of available raw materials has a positive effect on sales turnover of the three selected indigenous industries in the south east of Nigeria.
Hypothesis Three
H0:    Uncontrolled importation of available raw materials does not have a significant relationship with profitability of the three selected indigenous industries in the south east of Nigeria.  
H1:    Uncontrolled importation of available raw materials has a significant relationship with profitability of the three selected indigenous industries in the south east of Nigeria.  
Hypothesis Four
H0:    Uncontrolled importation of available raw materials does not have a positive effect on customer turnover of the three selected indigenous industries in the south east of Nigeria.
H1:    Uncontrolled importation of available raw materials has a positive effect on customer turnover of the three selected indigenous industries in the south east of Nigeria.
1.6    Significance of the Study
This research work will be beneficial to the management of the three selected indigenous industries in South-East Nigeria. They benefit when they make use of the findings of this research work. As such, the management of the selected indigenous industries will be able to know how to cope with the negative effects of uncontrolled importation on their organizations. Government will benefit from this research work because it will expose them on how to improve on their economic development of the nation. The researcher will also benefit from this research work because it is a partial requirement for the award of a Bachelor of Science (B.Sc) degree in Business Administration. Business people on export and import business will benefit as it will enhance their knowledge base. The university will benefit because it increases its data bank. Finally, this research work will serve as reference material for further research on this topic.
1.7    Scope of the Study  
    This research work covered, the extent uncontrolled importation has affected the three selected indigenous industries in South-East Nigeria. The objectives in mind, ascertaining the effect of uncontrolled importation on sales turnover of the three selected indigenous industries, the relationship between uncontrolled importation and profitability of the three selected indigenous industries and how uncontrolled importation affects customer turnover of the three selected indigenous industries. The three selected industries studied from three states of the five South-East state of Nigeria include: Innoson Technical and Industrial Company Limited Enugu State, Ibeto Nigeria Limited Nnewi, Anambra State and Vitafoam Nigeria Plc Owerri, Imo State.
1.8    limitations of the study
The researcher encountered some impediments in the course of carrying out this research work. Among them were
Finance: the researcher does not have enough fund to carry out all that was supposed to be done in this research.
Uncooperative attitude of the respondents: the respondents of the three selected indigenous industries in the south east of Nigeria were economical with information.
1.9    Operational Definition of Terms
    No new term outside its original was used in this research work, hence there was no term to define.