nwankwo, nwabueze luke - university of nigeria
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NWANKWO, NWABUEZE LUKE PG/M.Sc./06/46422
THE ROLES OF MARKET TRADERS’ ASSOCIATIONS AND THE ECONOMIC DEVELOPMENT OF NIGERIA
Marketing
A DISSERTATION PRESENTED TO THE DEPARTMENT OF MARKETING FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
Webmaster Digitally Signed by Webmaster’s Name
DN : CN = Webmaster’s name O= University of Nigeria, Nsukka
OU = Innovation Centre
2012
UNIVERSITY OF NIGERIA
2
TITLE PAGE
THE ROLES OF MARKET TRADERS’ ASSOCIATIONS
AND THE ECONOMIC DEVELOPMENT
OF NIGERIA
BY
NWANKWO, NWABUEZE LUKE PG/M.Sc./06/46422
A DISSERTATION PRESENTED TO THE
DEPARTMENT OF MARKETING FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA, ENUGU CAMPUS
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF MASTER OF SCIENCE (M.Sc.) DEGREE IN MARKETING
SUPERVISOR: DR. MRS. J.O. NNABUKO
APRIL 2012
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CERTIFICATION
I hereby certify that this dissertation, “The Roles of Market
Traders’ Associations and the Economic Development of Nigeria” is
an original and has not been presented in part or whole in any
Academic Institution known to me.
………………………………... …..……………… NWANKWO, NWABUEZE LUKE DATE
PG/M.SC./06/46422
APPROVAL PAGE
4
The topic, “The Roles of Market Traders’ Associations and the
Economic Development of Nigeria” has been approved for Nwankwo,
Nwabueze Luke with Registration Number PG/M.Sc./06/46422 as a
dissertation topic for the award of a Master of Science (M.Sc.) degree
in Marketing by the Marketing Department of University of Nigeria,
Enugu Campus.
………………………………….. …………..… DR. (MRS.) NNABUKO J. O. DATE
SUPERVISOR
………………………………….. …………..……. DR. MOGULUWA S.C. DATE HEAD OF DEPARTMENT
………………………………….. …..………………
EXTERNAL EXAMINER DATE
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DEDICATION
This work is dedicated to my family for their support.
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ACKNOWLEDGEMENTS
I wish to acknowledge those who in no small measure contributed to
the accomplishment of this work. My unquantifiable gratitude goes to
my amiable Supervisor, Dr. (Mrs.) Nnabuko, J. O. for her motherly,
academic and professional guidance. I also appreciate Prof.
Nwaizugbo who though cheerfully but critically scrutinized the initial
chapter, thus setting this work in a strong footing.
I am also thankful to the instructors who guided me throughout the
period of this programme: Prof. Onah J., Prof. Nnolim, D., Prof.
Ugwuona, G. E., Dr. Ehikwe and Mr. Achison, also to the Head of
Department Dr. Moguluwa S.C.
I also acknowledge my academic colleagues Emeka Agina, Victor
Okolo, Gerald Nebo, Jones Okafor and Ifejika Ifeoma whose
encouragements contributed immensely to the realization of this
dream.
Finally, I wish to appreciate my wife and children Otito, Chimbudike
and Chimamanda for the enabling environment they created for this
work to strive.
May the good Lord reward you all abundantly.
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ABSTRACT
This study was to appraise the supply regulation, product quality regulation and market administration activities of Market Traders’ Association to assessing their role in the economic development of Nigerian nation. This study was motivated by the vital role markets play in the revamping and revitalizing of an ailing economy. The study sought to: (i) determine whether the traders’ associations through their activities promote consumers’ confidence, (ii) find out whether the traders’ association restrict supply entry into the market by non-members, (iii) examine the effort of the association to ensure that only genuine products are sold in the markets; (iv) identify efficient and effective means of collecting revenue from the market by government agents without engaging in confrontation with the traders; (v) assess the means of creating an interface between the government and the traders to promote peaceful co-existence and (vi) determine whether traders’ association have the potential to fast track Nigeria’s economic development. The study was a descriptive survey conducted in the two major markets of the south eastern states of Nigeria.The population of the study was one hundred and twelve thousand, five hundred and thirty-five registered traders from the two markets, and the customers and itinerant traders that have either bought or sold in these markets. A sample size of five hundred and forty respondents was selected using Taro Yamane (1964) and Topman’s formulae (as cited in Nwabokei 1986). Primary and secondary data were used, the research instrument was predominantly questionnaire. A simple stratified sampling technique was adopted in selecting the sample size. A pilot survey was conducted at Ogbete market among thirty respondents. Validity of the research instrument was measured using face and content validity. Reliability measurement of the instrument was the test-retest method. The Pearson Product Moment Co-efficient for the two sets was 0.7. Tables and percentages were used in analyzing the primary data while the t-test statistic was used to analyse the hypotheses. The study revealed that hike in price and poor quality product offering impacted negatively on consumers’ confidence (t-value 7.897, sig. = 0.000). Non member traders were not significantly restricted from bringing wares to the markets (t = 5.431, sig. 0.059). Enough efforts were not put in place by the association to ensure that only genuine products are sold (Tt = 1.96 > Tc = 1.67, = 0.05). The potentials of the traders’ associations if well harnessed could fast track the economic development of Nigeria (Tt = 1.96 < Tc = 2.5, = 0.05). The study also revealed that the relationship between the government and the associations are not very cordial, the government does not have a database for all business establishments in the markets thus leading to loss of revenue. Also the associations do not have a coordinated market information gathering and dissemination system. The study recommended that the government should partner with traders association in policy formulations. Government should through the relevant Ministry compile a database of all business activities. This will help to reduce tax aversion and ease traders’ access to loan facilities. The association should develop an Internal Market Surveillance Unit (IMSU) to fish out and blacklist members that deal on fake and substandard products and also develop a system of gathering and dissemination of information among members.
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TABLE OF CONTENTS
PAGE
Title Page ……………………………………………………… i
Certification ……………………………………………………. ii
Approval Page …………………………………………………. iii
Dedication ……………………………………………………… iv
Acknowledgements…………………………………………….. v
Abstract……………………………………………………………….. vi
Table of Contents………………………………………………. vii
List of Tables………………………………………………………. ix
List of Figures………………………………………………………. xi
CHAPTER ONE: INTRODUCTION 1
1.1 Background of the Study …………………………………. 1
1.2 Statement of the Problem………………………………….. 2
1.3 Objectives of the Study……………………………………… 5
1.4 Research Questions…………………………………………. 6
1.5 Research Hypotheses……………………………………….. 7
1.6 Significance of the Study …………………………………… 7
1.7 Scope of the Study……………………………………………. 9
1.8 Limitations of the Study …………………………………….. 11
1.9 Definition of Terms …………………………………………… 12
References …………………………………………………….. 14
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CHAPTER TWO: REVIEW OF RELATED LITERATURE 15
2.1 Introduction ……………………………………………. 15
2.2 Current State of the Economy………………………. 15
2.3 Concept of Economic Development………………… 16
2.4 Economic Growth Versus Economic Development. 18
2.5 Role of Market in Economic Development ……….. 19
2.6 Nature of Traders Association ……………………… 26
2.7 Membership Characteristics and Structure…….. 31
2.8 Association Administration and Management…. 34
2.9 Activities of Traders Associations………………….. 39
2.10 Challenges of Traders’ Associations in Nigerian Economic Development …………………………….. 48
2.11 Overview of Traders’ Association Worldwide……. 50
2.12 Summary ……………………………………………….. 68
References…………………………………………………. 69
CHAPTER THREE: RESEARCH METHODOLOGY 71
3.1 Introduction ………………………………………………. 71
3.2 Research Design………………………………………….. 71
3.3 Area of the Study…………………………………………. 71
3.4 Nature and Sources of Data…………………………… 72
3.5 Population of the Study ……………………………….. 73
3.6 Sample Size………………………………………………… 73
3.7 Sampling Techniques……………………………………. 73
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3.8 Pilot Survey……………………………………………… 74
3.9 Validity of Test Instrument ……………………………. 74
3.10 Reliability of Test Instrument………………….. 75
3.11 Techniques of Data Presentation and Analysis 76
References…………………………………………….. 77
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 78
4.1 Introduction …………………………………………….. 78
4.2 Presentation and Analysis of Data………………….. 78
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATIONS
5.1 Introduction ………………………………………………… 97
5.2 Summary of Findings…………………………………….. 97
5.3 Conclusion ………………………………………………….. 99
5.4 Recommendations………………………………………….. 101
5.5 Contribution …………………………………………………. 102
5.6 Suggestions for Further Studies…………………………. 105
Bibliography………………………………………………….. 106
Appendices…………………………………………………… 109
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LIST OF TABLES
PAGE
TABLE
2.4 List of Commodity Traders’ Association in a Typical Nigerian Market………………….. 29
4.2.1 Rate of Agreement to the Sale of Fake
Product at High Price to Unsuspecting Consumer.………….. 78
4.2.2 Impact of Sale of Poor Quality Product on Consumers confidence …………… 79
4.2.3 Impact of Price hike on Consumers’ Confidence…. 80
4.2.4 Result of the Paired Sample Test using SPSS
Software paired Sample Statistic.……………….. 81
4.2.5 Paired Samples Correlations of Hypothesis 1... 81
4.2.6 Paired Samples Test of Hypothesis 1………… 82
4.2.7 Membership of Trader Association and Selling in the Market. ………………………….. 83
4.2.8 Trader Associations Imperative
for Economic Empowerment of Members…… 84
4.2.9 Market Restriction of Itinerant Traders ……… 84
4.2.10 Result of the Paired Sample Test Using
SPSS Software for Hypothesis 2…………… 86 4.2.11 Paired Samples Correlations for
Hypothesis 2………………………………….. 86 4.2.12 Paired Samples Test for Hypothesis 2………… 87
4.2.13 Associations Awareness of the Existence and
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Sale of Fake and Substandard Products……. 88 4.2.14 Associations Mechanism to Checkmate
Sale of Fake Substandard Products………… 89
4.2.15 Extent to which Traders Association ensure that Only Genuine Goods are Sold. ………… 90
4.2.16 Extent of Commitment of Traders Associations to ensure that only Genuine Goods are Sold………………………………….. 91
4.2.17 t-test Result on the Extent of Effort
by Traders Association to ensure that only Genuine Goods are Sold.………………………. 91
4.2.18 Association Collaboration with Government in Development……………………. 92
4.2.19 Enforcement of Tax Payment by Traders’
Association Executive. ………………………… 93
4.2.20 Traders Associations Job Creation Potential… 93
4.2.21 Trader Association and Infrastructural Development……………………………………….. 94
4.2.22 The Ability of Traders Associations’ Potentials
to Fast Track Nigerian Economic Development. 95
4.2.23 T-test Result on the Ability of Traders Association Potentials to Fast Track Nigerian Economic Development……………. 95
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LIST OF FIGURES
PAGE
FIGURE
Fig. 2.1 Traders’ Association Membership Structure…………………………………… 32
Fig. 5.1 Trade Harmony Ecosystem………………… 103
Fig. 5.2 Market Intelligence System……………….. 105
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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The market is the focal point for all economic activities; a means for
addressing all the economic needs of man giving man’s inability to
satisfy all his needs personally.
The emergence of traders’ associations in the markets according to Onah et
al (2006:29) and Columbia Encyclopedia (2008) were to administer the
market, promote the welfare of the members, maintain a mutual co-
existence and profit maximization objective, while protecting the
members from external forces that can negate these objectives. Little
or no regards were paid to the welfare of the consumers.
The global economic realities: rising cost of living, dwindling
economic power of families, dwindling value of the currency, falling
standard of living, low per capita income with many families living
below an income of less than one dollar a day, market globalization,
growing level of sophistication and maturity of consumers, increasing
consumer awareness and above all the global economic melt down
have made consumers to become more conscious of their expenditure
patterns. Stemming from these, households are more pragmatic on
how they meet their daily needs. This development has made the
consumers to insist on the best at the least cost and the practical
demonstration of the consumer oriented marketing concept
principles.
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The market is a veritable source of revenue to the government. A
pragmatic traders’ association assists the government in revenue
generation from the market so as to improve social development. This
aspect has been played down over the years due to the buoyant
subventions received by different tiers of government from the
federation account. Due to the global economic recession, the
government now interferes more strongly in the administration of the
market as a source of revenue generation.
The varying interests of the associations, the consumers and the
government have created a lacuna. This study therefore will appraise
the roles of some selected activities of these traders’ associations to
finding out whether or not they promote economic growth and
development.
1.2 Statement of the Problem
The role of the market place in the alleviation of poverty and socio-
economic growth and development of the nation cannot be
overemphasized. The market place provides the enabling environment
for innovations and creative abilities of the citizenry to be showcased
(Ezenyimba, 2009:11). The market traders associations will tend to
be the institution to facilitate the achievement of this goal of
economic growth and development. Market associations are non-
financial institutions that tend to regulate, direct and stabilize growth
and development in the market place. The fact is that the
existence/non-existence mode of operation and impact of these
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associations have generated varying degrees of misconceptions owing
to their roles in price fixation and supply regulation leading to loss of
consumer confidence. In the light of the above Huggin (2002:47)
characterized the traders associations as self-centred with little or no
regards to the consumers satisfaction and welfare. Having seen the
characteristics of the traders associations and their various
constraining roles to marketing development, this research work will
be based on the following problems.
Modern marketing management identified the consumer oriented
marketing concept as the base for economic growth. The concept
contends that all the activities of the marketer should be channeled
at satisfying the consumers. The marketing mix variables (product,
price, place and promotion) should be manipulated in such a way
that it will offer the highest utility to the consumer at a minimal cost.
Thus, the consumer is the “King” and his satisfaction is most
paramount. A situation where the activities of the traders in the market
place are aimed at profit maximization at the expense of the consumer’s
satisfaction creates a problem. Consumers in the bid to enforce their
right have most often ended in a big confrontation with the traders.
Competition sharpens the creative edge of the competitors, promote
innovative ideas and broadens the market, thus helping to control
the arbitrary rise of costs of goods and services. To achieve a
sustainable economic growth, there must be a healthy competition
among the traders and the market place is seen to provide such
platform. Traders should have free access to the market and sell their
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wares at market regulated prices. Lyon (2003:35) observed that the
tomato dealers of Accra, Ghana do not allow non-members to sell in
the market except to a member at the union stipulated price. Also a
study at Enugu metropolis markets revealed that at the fowl market
at Artisan market Asata non-members are allowed to sell only on
Wednesday s and Sundays. This practice does not allow for healthy
competition, discourages production, encourages exploitation and
generates bad blood.
In the capitalist and mixed economic systems, there is no limit to the
amount of wealth one could enmass. In these economic systems
there are virtually two classes of beings: the rich and the poor, with
the gap in between them ever increasing. In the quest to belong
to the class of the rich; traders engage in various dubious means to
make wealth. Some of this can be seen in the form of production and
sale of fake and adulterated products. This has caused immeasurable
damage to lives and property of consumers.
The Nigerian economy has for long been oil based. The volatile
nature of the oil market has created the worries of looking for non-oil
sources to sustain the economy. In the same vein, the Internal
Generated Revenue (IGR) sources have not been radically harnessed
owing to huge subventions received by the three tiers of government
from the federation account. In a country like Singapore, internally
generated revenue from the market accounted for 12.05% of their
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revenue in 2005 (World Economic Review 2006). The radical drop in
oil prices globally has necessitated the need to harness other sources
of revenue and the market place provides such source.
Therefore, the crux of the matter is, how to co-ordinate the activities
of the market traders associations to fast track economic growth and
put Nigeria on the part of achieving economic greatness to compete
with other developing countries favourably.
1.3 Objectives of the Study
The major objective of this study is to determine the activities and the
importance of the activities of market traders’ association in
economic growth and development.
Specifically, the study strives to:
(1) determine whether the traders’ associations through their
activities promote consumers’ confidence;
(2) find out whether the traders’ associations restrict non-
members supplies from entering the market;
(3) examine the effort of the traders associations to ensure that
only genuine products are sold in the markets;
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(4) identify efficient and effective means of collecting revenue from
the markets by government without engaging in confrontation
with the traders.
(5) assess the means of creating an interface between the
government and the traders’ association to promote peaceful
co-existence.
(6) determine whether traders’ associations have the potentials:
job creation, standard of living improvement and physical
infrastructural development to fast track Nigeria’s economic
development.
1.4 Research Questions
In the quest to provide a workable solution to the research problems,
it is imperative to draw up certain guidelines to aid the decision
process. In the light of the above, the following questions were to
serve as a guide to the researcher.
(1) What positive impact has the market traders’ association have
in the promotion of consumers’ confidence?
(2) To what extent have the market traders association restricted
non-members from bringing supply to the market?
(3) What steps have market traders associations taken to ensure
that only genuine products are traded in the market?
(4) What are the various means by which government can generate
revenue from the market?
(5) Have the administration of the traders association promoted
effective generation of revenue by the government agencies
from the markets?
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(6) What potentials do traders’ associations have to fast track
Nigeria’s economic development?
1.5 Research Hypotheses
The following null hypotheses were formulated to aid the researcher’s
decision.
1. Trader’s association activities (hike in price and poor product
quality offering) negatively impacted on consumers’ confidence.
2. Non-member traders’ supplies are not significantly restricted
from the markets.
3. There is not enough effort by traders associations to ensure
that only genuine goods are traded in the markets.
4. Traders’ associations have no potentials to fast track Nigeria’s
economic development.
1.6 Significance of the Study
The fundamental aim of a research undertaking is to generate
knowledge which may lead to a solution to a felt problem. The
research unveils some facts which were before then unknown and
consequent upon this new knowledge emerges. The new knowledge
becomes a platform for vigorous intellectual discussion and further
research. Usually an enquiry into the subject matter deepens’
scholars receive more intellectual insight on the subject thus
contributing to the existing body of knowledge.
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Stemming from this, the product of this research will be significant to
researchers, the consumers, customers, non-member traders, the
associations, the government and the society at large.
The researchers, the study will serve as a reserved knowledge to be
referred by researchers and throw more light on traders’ association
activities. It will contribute immensely to the enrichment of the
literature in that area.
The consumers will understand the activities of the market traders’
associations and how it influences the supply and price of products.
This will enable them make adjustment on where and when to make
purchases.
The customers will benefit from this study by becoming aware of their
rights and what to do when such is infringed.
The study will be of significance to the non-member traders. It will
expose them to what they stand to gain as members and what they
have been loosing as non-members.
The study will be beneficial to the association as it serves as a means
of advertising the association. It also exposes them to what they are
expected to do to promote the confidence of the customers.
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The government will also benefit from this study. It will unveil the
activities of the association, attracting government attention to
looking into these activities to finding out how they impede or
contribute to economic growth and development. It will also help to
fashion government decision in policy formulation and the need to
dialogue with the association in certain issues.
The society at large will benefit from the study. The society will
become more aware of the activities of the market traders’ association
and appraise their good virtues while vehemently resist any negative
tendencies.
1.7 Scope of the Study
The activities of traders’ associations in Nigerian markets can be
summarized into five headings:
1. Supply regulation activities
2. Product quality control activities
3. Market administration
4. Informative activities
5. Welfare activities
This research hinges on studying the roles of traders’ association in
Nigerian markets. This study concentrates on the supply regulation,
product quality regulation and market administration activities of
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traders’ associations. This study was motivated by the important
roles markets play in the growth and development of the economy
and the revitalizing and revamping high standard of living in an ailing
economy such as ours.
The research will investigate the reasons why the market place which
provides crucial opportunity for business activities and the bottom
line for the economic emancipation and growth of the Gross Domestic
Product (GDP) of Nigerian Nation has been characterised with
activities of clandestine – like unions that tend to negate the true
purpose of the existence of the markets. This research thus strives to
find out the importance or otherwise of the activities of these
associations.
1.8 Limitations of the Study
The conduct of research in developing countries Nigeria inclusive is
bedeviled with lots of problems ranging from draught of information
to deliberate withhold of information.
However, in this research the following problems were encountered.
(a) Draught of information as very few studies have been
conducted in this very area of unionism.
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(b) Delay in filling and returning questionnaires from the
respondents.
(c) Apathy on the side of the market traders’ executives to the
researcher posed a problem.
(d) Deliberate withhold of information by the market traders’
executives who are not sure whether such information will be
used for external purpose. Meanwhile, the researcher did all
within his powers to get as much information as possible.
(e) Financial constraint: The researcher was financially restrained
as huge amount of money was required to carry out a detailed
study and this research was being financed by the researcher
himself.
(f) Time constraint: The researcher could not get all the required
information due to the limited time allowed for this study.
1.9 Definition of Terms (Conceptual)
Gross Domestic Product (GDP): This is the total monetary value
of all the commodities and services produced within a country in
a given year, less the monetary value of goods and services
produced by non indigenes of that nation plus earnings from the
country’s investments in other countries (Anyaele, 2003:47).
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Traders’ Association: Group of business people in the same
trade or industry organized for the advancement of common
interests. Columbia Encyclopedia 6th ed. (2008:1).
Internally Generated Revenue (IGR): Revenue generated by a
government within her area of jurisdiction (Anyaele, 2003:63).
Economic Development: A multi-dimensional concept involving
improvement in human well being. www.economic4development.com2010.
Economic Growth: An increase in GDP or increase in per capita
income. www.economic4development.com2010.
Operational Definition of Terms
Internally Generated Revenue (IGR): This is the revenue
which the government: Local, State or Federal generate within
their area of jurisdiction. IGR is not part of the statutory
allocation received monthly by these tiers of government from
the federation account. It includes taxes, tolls from the market,
sanitation levy etc.
Gross Domestic Product (GDP): Total financial value of all
goods and services produced by indigenes of a country within a
specified period.
Commodity Traders’ Association (CTA): Association of traders
that deal on a particular commodity e.g. yam.
Amalgamated Traders’ Association (AMTA): An umbrella
association for all registered traders in a particular market.
National Association of Nigerian Traders (NANTS): An
umbrella association for all registered traders in Nigeria.
Economic Development: A concept that tend to look at the
totality of improvement in human livelihood.
Economic Growth: An improvement in the production and
distribution of goods and services.
26
REFERENCES
Anyaele, J. U. (2003). Comprehensive Economics. Lagos: D.Johnson
Publishers Ltd. Columbia Encyclopedia (2008).
Ezenyimba, E. (2009). Growth of Marketing Education in Nigeria.
Unpublished Ph.D Thesis UNEC.
Lyon, F. (2003), “Trader Association and Urban Food Systems in Ghana.
Institutionalist Approaches to understanding Urban Collective
Action.” International Journal of Urban and Regional Research, 27, 1:11-23.
Onah, J. Ndolo, I. S. and Allison, P.U. (2006). Marketing and Management
Practice in Nigeria. Enugu: African Marketing Development Foundation.
World Economic Review (2006). www.economic4development.com
27
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction
In this chapter the researcher reviewed scholarly articles and studies
that are significantly related to the topic of this study. In particular,
the review was treated under the following sub-headings, current
state of the economy, the role of market in economic development,
nature of the traders association, membership characteristics and
structure, association administration and management, activities of
trader’s associations, challenges of traders associations in Nigerian
economic development, overview of trader’s association worldwide.
2.2 Current State of the Economy
Nigeria is a country that is endowed with numerous natural
resources, a potential that if well harnessed will provide an
inexhaustible sources of revenue. But currently, the Nigerian
economy is hinged on oil – one of the numerous natural resources.
In the 1960’s and early 1970’s, the Nigerian economy depended on
funds realized from transactions in the agricultural sector (Eya,
2008:15). The Gross Domestic Product (GDP) then recorded a
continuous annual growth of 3.1% (Ekpo and Umoh, 2009:1). At
independence in 1960, one of the foremost things the government did
28
was to develop the agricultural sector and markets to boost economic
activities (Eya, 2008:17).
With the discovery and exploration of oil, the nation recorded a rapid
economic growth, GDP grow positively at 6.2 percent annually while
the manufacturing and industrial sectors recorded a negative growth
of -3.2 percent and -2.8 percent respectively during the oil boom era.
The boom lured labour away from the rural sector to urban centres
(Ekpo and Umoh, 2009:3), thus shifting government interest from
exploring other internal sources of revenue to depending on oil money
alone to finance developmental projects and to run the government.
This is currently the state of the economy. Despite the numerous
sources of revenue available to the various tiers of government as
specified in the Nigeria 1999 constitution, since the 1970’s till now
over 80 percent of the annual revenue of the three tiers of
government come from petroleum (Aguolu, 1999:2).
However, the serious decline in the prices of oil in recent years has
led to a decrease in the funds available for distribution to the Local
and State Governments. The increasing cost of running government
coupled with dwindling revenue has left the various State
governments in Nigeria with formulating strategies to improve their
revenue base. The onus lies on various tiers of government to
29
generate adequate revenue from internal sources as an extreme
necessity. This has necessitated the local, state and federal
governments to look for new sources of revenue or to become more
aggressive and innovative in the mode of collecting revenue from
existing sources.
2.3 Concept of Economic Development
Economic development is a multi-dimensional concept involving
improvement in human well being. It is a concept that tend to look
at the totality of improvement in the human livelihood. It portrays
improvement in the standard of living, growth in Gross Domestic
Product (GDP), access to social amenities, quality health services,
education, security etc. Economic development is the development of
economic wealth of countries or regions for the well being of their
inhabitants.
Prof. Dudley Seer (2010:5) sees economic development as the
outcome with the reduction and elimination of poverty, inequality
and unemployment within a growing economy.
Prof. Michael Todare of Pennyslavania University identified three
objectives of development to include:
30
Producing more life sustaining necessities such as food, shelter
and healthcare and broadening their distribution.
Raising standards of living and individual self esteem and
Expanding economic and social choice and reducing fear.
Critics however, pointed out that Gross Domestic Product (GDP) is
not a sufficient parameter to measure economic development. This is
because the GDP parameter does not take account of important non-
economic variables such as more leisure time, access to health and
education services, environmental freedom or social justice.
The United Nation has developed indices to measure development
against mix of composite indicators.
UN Human Development Index (HDI). This measures a country’s
average achievement in the three basic dimensions of Human
development in life expectancy, educational attainment and adjusted
real income.
Human Poverty Index (HPI) measures deprivation using percentage
(%) of people expected to die before age 40 years, percentage (%) of
illiterate adults, percentage (%) of people without accesses to health
services and safe water and the percentage (%) of underweight
children under five (5).
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2.4 Economic Growth Versus Economic Development
Economic growth and economic development are two terms often
used interchangeably. Basically economic growth refers to developed
countries while economic development refers to problems of underdeveloped
countries. Economic growth is a necessary yet insufficient condition for
economic development. Economic growth refers to increase in per
capita income or increase in GDP in recent literature. The term
economic growth is a sustained increase in a country’s output of
goods and services or more precisely product per capita.
Economic development is far more comprehensive. It implies progressive
changes in socio-economic structure of a country. Viewed in this
way, economic development in a steady decline in agricultural share
in Gross National Product (GNP) and continuous increase in share of
industries, trade, banking, construction and services. Whereas
economic growth merely refers to rise in output development implies
change in technical and institutional organization of products as well
as in distributive pattern of income. Hence, compared to the
objectives of development, economic growth is easy realized by a large
mobilization of resources and raising the productivity output level.
The process of development is far more extensive apart from a rise in
output, it involves changes in the allocation of production resources
and elimination or reduction of poverty, inequality and unemployment.
32
Development requires the removal of major sources of unfreedom,
poverty as well as tyranny, poor economic opportunities as well as
systemic social deprivation, neglect of public facilities as well as
intolerance or over activity of repressive states.
Economic development therefore is not possible without economic
growth, but economic growth is possible without economic
development. Growth is just increase in GNP and does not have any
other parameter to it. Development can be conceived as multi-
dimensional process or phenomena. Economic growth indicator
(GNP) can also be seen as development indicator if the increase in
GNP also result in an increase in the per capita income of the
population.
2.5 Role of Market in Economic Development
The growth and development of any nation is to a very large extent
dependent of the degree of development of its market. Thus as Onah
(2006:22) succinctly stated: the existence, development and strength
of all nations of the world are based on three spheres of activities,
namely political, social and economic. Differences in societies only
exist in terms of the relative degree of priority placed on each of these
activities, implementation efficiency of stated policies on them,
effectiveness of these policies and the manner in which these
33
activities are juxtaposed with one another. These activities are in
constant interaction with the consequent aim of producing a healthy
virile and strong nation because none of them can actually exist in
isolation of the other. Regardless of this, however, one unique thing
is that all societies attach greater of importance and concern to their
economic activities because of the fact that growth and development
of nations had always been on economic development than on
anything else.
The market offers the populace the opportunity to develop
independent thinking habit, a creativity which can assist their
country in building a virile nation. Thus, the market is that pervasive
area in which the nations developmental needs rely.
Consequent upon this, the roles of the market in the economic
growth and overall development of a nation can be stressed in the
following:
(1) Specialization in Activities of Comparative Advantage
In the absence of market facilities, areas must maintain
diversified activities to produce their own food, shelter, tools,
cloths, medicine and other needed goods. In the presence of
market however, an individual can specialize in one activity
34
and sell the surplus to purchase other needed goods. The
individual is mostly going to specialize on the bases of
comparative advantage on those activities for which he/she has
special resources or ability. Comparative advantage exists
when an individual or region can produce a good relative to the
price of other goods more cheaply than other individual or
region (Kinsey, 1982:36).
(2) Enhanced Resource Use Efficiency and Trade
Through specialization and trade a community is better able to
utilize its limited resources. Specialization and the resulting
efficiency of resource – use is the basis for economic growth
and development. As markets and economies develop,
surpluses occur more frequently in profitable activities,
creating new wealth, while products are moved greater distance
than before. Thus, trade is a necessary ingredient for economic
growth. Marketing is simply means by which trade occurs.
(3) Advance in Marketing with Economic Growths
As economic growth proceeds, general changes in marketing
take place. With economic development, the activities and
tasks of marketing increase. Activities such as storage,
processing, packaging and retail distribution become more
35
important (Kinsey, 1982:37). Greater activity moves away from
site of production and towards marketing. This in turn creates
employment opportunities and further specialization. With
development, more economic agents may enter the market
helping to improve the marketing of services and in some cases
allowing the market to capture external economies of scale.
Such is the situation where the presence of many agents allows
each one to operate at the lower cost. An example can be seen
in the case where increase trade in some commodities allows
for the establishment of large storage facilities which lowers per
unit storage cost.
Physical infrastructure can also be affected in a positive way by
large markets in the form of better roads and communication
network offering the potential for external economies of scale.
Consequently, the Nigerian 2010 draft document recognized the
importance of market and marketing. To achieve the goal, the
draft document pinpointed the development of market and
marketing. Marketing is expected to address four cardinal
issues.
1. Bridging the gap between production and consumption;
2. Creating entrepreneur and managers;
36
3. Integrating the society with the economy and
4. Linking local communities with the outside world.
According to Poulton and Dorward (2006:68), market is the base for
poverty reduction.
For the market to effectively play an active role in economic growth
and development certain conditions must be addressed. The rural
areas must be effectively linked in terms of information and
infrastructure through the intermediaries in the marketing system
with urban centres of consumption. With the shift in resources away
from production to marketing services, small scale processing can
expand markets by increasing demand through diversification of the
end products. Perhaps, most important and crucial to the reform of
Nigerian marketing systems is the requirement that the institutions
and policy environments do not discourage or unnecessarily impede
the actions of marketers. Also, property right contracts should be
protected.
Another important factor is the disequilibrium between demand and
supply. Producers and consumers must exert greater efforts to cope
with each others requirements. Increasing efficiency resulting from
trade is not in itself sufficient to create wealth. A stable but static
equilibrium where supply meets demand may no longer produce new
wealth. Disequilibrium along with technical and institutional changes
37
may be the condition needed to move even greater comparative
advantage and efficiency levels.
Further, initial scarcity of resources (poverty trap) can cause
subsistence activities to dominate, denying the surplus labour
knowledge and technology required to create comparative advantage.
The institutional and organizational requirement necessary to expand
markets may also be enormous. The role of property rights will play
an important role as marketing and market inherently involves
transferring property rights. The nature of the society may restrict
the scale on which such transfer can take place.
2.5.1 Problems of Accessing Revenue by the Government from the Markets
The following problems militate against government’s access to
revenue from the markets.
Poor Statistical Data. Inaccurate record of the number of
business outfits existing in the markets by government pose a
great challenge. The government lacks the statistical data of the
numerical strength and size (capital outlay) of business outfits
present in the market. This statistical loophole creates room for
inaccurate revenue estimate. The government should have a
comprehensive data of the number of stores, shop or stalks in
38
the market and the size of the business to enable them make
projection of revenue generation.
Poor Assessment. Closely aligned to the problem of poor
statistical data is the problem of poor assessment. Stemming
from the fact that government does not have accurate
assessment of the size (capital outlay) of businesses, most
traders do not pay tax. The few that do, may be because they
have transactions with government agencies pay the flat rate.
This has seriously affected the revenue generated by government
from the markets.
Inadequate Method of Collection
Most of the revenue generated by government from the markets
are in form of tolls and are paid in cash. This crude method of
collection is open to manoeuvre and fraudulent practices. Due to
the fact that the traders do not stand to miss anything for non
payment of these tolls, they can easily dudge them. Also there
are no bases for revenue estimates due to the nature of the
activities taking place in the market. It is difficult to arrive at an
accurate estimate of what a collector is supposed to collect per
day. Thus, the amount returned depends on the degree of
sincerity of the collector.
39
Poor Motivation and Corruption
Most of the revenue collectors are poorly motivated. Most of
them are junior staff whose take-home pay is less than five
hundred naira (N500.00) per day. For such a staff to collect
cash revenue for the government under a porous accounting
control system is amiable to fraud. Most council areas are
irregular in payment of salaries of workers, thus, providing the
loophole for revenue collectors to divert monies collected to
private use (Uzendu, 1998:57).Secondly, the toll receipts do not
have any security marks and as such are easily faked by
fraudulent officials.
Lack of Seriousness on the Part of Government
It is often said, “government does not have any business in
business.” This adage is practicalised in the lopsidedness by
which government pursue internally generated revenue.
Secondly, due to the robust revenue earnings from the
federation account, less attention is being paid to other internal
sources of revenue generation.
2.6 Nature of Traders Association
Columbia Encyclopedia com defined traders’ association as a group
of business people in the same trade or industry, organized for the
40
advancement of common interest. The common interest binding the
members may include credit, public relation, relation with employees,
sales development, quality regulation, output or price.
Obi (1984) defined traders association as a group of traders who
came together under a trade name to protect and advance certain
common interests. These traders are engaged in any one or
combination of wholesale and retail binding trading, merchandizing,
importing or exporting. Some traders’ associations are limited to a
particular market while some like the Dar-es-salam meat traders’
association transcends all the markets in Tanzania (Shepherd, 2005:52).
Market unions or traders’ associations were borne out of common
interest of the traders to promote and protect their business from
incursions by non-member traders, promote profit maximization
through regulation of supply or price, maintain high standard of
quality offering and address matters of general interest.
Market traders’ associations seem to be fairly widespread around the
world, although the extent to which they are found in rural, as
opposed to urban markets is unclear. In Latin America, such
associations are to be found in most wholesale markets. Almost all
wholesale markets in Brazil have associations and they also exist in
Argentina, Uruguay, Ecuador Venezuela and Colombia. In some of
41
the larger wholesale markets, there are two or three associations
grouping different participants in the marketing chain, such as small
retailers, street-market vendors and traditional wholesalers. Associations
are also found throughout Africa.
As rural markets take more permanent structure with the provision
of stalls, shops and batchers, traders organize themselves into
associations to undertake the organization and administration of the
market. They act as the internal governing body of the market with
diverse activities according to the type of market but with common
objective of mutual co-existence and market growth as a profit being
pursued, they make binding laws, collect tolls, keep the market
clean, form saving and market accumulation centres as avenue for
loans to members (Onah et al, 2006:29).
The traders’ associations are categorized as:
(1) The Commodity Traders’ Association (CTA): This category
constitutes of traders that deal on a particular commodity e.g.
meat, yam, tomatoes etc.
(2) Amalgamated Market Traders’ Association (AMTA): Is an
umbrella association for all the registered traders in a market
irrespective of what they deal on.
(3) National Association of Nigeria Traders (NANTS): An
umbrella association for all registered traders in Nigeria
markets.
42
Table 1: List of Commodity Traders’ Associations in a Typical Nigerian Market
Food Items Health Care Wears Beverages Home Appliances
Others
Grains Medicine Boutique Foreign Drinks
Kitchen Wares
Hand Tools
Meat Hospital Equipment
Abada/Lace Liquor Carpet/ Rug Bicycle Parts
Egg Cosmetics Trouser Material
Provisions Sewing Materials
Fresh fish Motherand Child
Textile Material Electrical Parts
Dried Fish Old Wears Electronics
Yam Old shoes Stationeries
Confectionaries Ladies shoes/ bags
Tobacco
Flour Mens’ shoes Books
Tomatoes Cultural outfit Music/video
Vegetables/ Okro
Jewelries Tire
Fruits Baby’s Autoparts
Garri
Source: Field Survey, 2009
2.6.1 National Association of Nigeria Traders (NANTS)
NANTS is an umbrella organization of traders in raw materials,
industrial and finished goods (locally made and imported) in Nigeria
committed to engaging in the trade process within the Nigerian and
International economic space with the goal of facilitating economic,
justice, wealth creation and sustainable development. NANTS is
focused on giving voice to the poor, for achieving the development of
real sector and encouraging a participatory process in the
development of policies for an effective market economy.
However, to encourage and improve the interlink between market
access and production of goods, NANTS membership has recently
43
been expand to include local manufacturers of certain items such as
(shoes, garments, cosmetics, furniture, household goods, local raw
material providers etc. as well as local farmers in various agricultural
produce). Women constitute about 65 percent of NANTS membership.
NANTS originated in 1977, under the military regime, but was legally
registered as a National organization in 2001 with the entrance of
civilian administration. The corporate headquarter is at Abuja while
the commercial office is in Lagos.
The vision of NANTS is, advancing trade beyond buying and selling to
a vehicle for social justice, human rights, sustainable development
and poverty reduction. The mission statement is promoting trade
and economic advancement, uniting and championing the rights and
course of the entrepreneur through strategic programmes and policy
interventions.
NANTS membership hitherto had individual members but eventually
evolved into unit membership for easy administrative purposes. At
present, NANTS has about 152 markets and producers’ associations
as units under the umbrella consisting of over 14,000 individuals.
44
2.7 Membership Characteristics and Structure
Membership of traders associations cut across both sex, though in
some cases a certain trade is dominated by a particular sex
(Heuman, 1994:3). Traders’ associations are grouped according to
their economic involvement in the marketing function. Thus, we
have wholesalers association, retailers’ association and in some cases
a combination of both. In urban markets, traders’ associations
represent different commodities, though a central association also
exists; while in rural market traders in all products tend to group
together to form one association. Such is a common feature of
traders’ association in Dhaka and Delhi, India (Harriss-white,
1993:16). Though, currently in Nigeria a federated body known as
National Association of Nigerian Traders (NANTS) exists as an
umbrella association for all traders associations in Nigerian markets.
Traders’ associations are specific to particular market and exist
parallel to the same association elsewhere. Eluagu and Okereke
(1985) contends that this is as a result of increasing mistrust among
association members. Though, limited scope of membership will help
to boost the administrative efficiency. In some few cases, linkages
are found between similar associations in different markets. The Dar-
es-Salam meat sellers’ association has linkages in all the markets in
Tanzania (Shepherd, 2005:52).
45
One peculiar thing in most traders’ association according to Onah
(2006:30), was that within the association there are unions which
can be likened to a quasi-association but are not formally recognized.
They are union of friends numbering about 5 – 15 members which
exist to perform such functions as collective procurement
arrangement and the sharing of transportation vehicles.
Retailers
Association
Wholesalers
Association
Wholesalers/Retailers
Association
Amalgamated Traders
Association
National Association
of Nigerian Traders (NANTS)
Fig. 2:1 Traders Association Membership Structure
Source: Nants (2009) About us
46
2.7.1 Access to Membership
The number of members is influenced by the size of the market and
the percentage of potential members who actually join an association.
In many cases membership, while theoretically voluntary, is close to
one hundred percent of the qualified traders. This is usually because
it is almost impossible to trade without being a member. In
Mandalay, Mittendorf (1993:5) reported that non-member traders are
not allowed to trade in the commodity exchange. Lyon (2003) and
Shepherd (2005) reported that the Agbogbolshie tomato traders’
association Accra, Ghana allow non-members to take tomatoes to the
market but are only allowed to sell to association members at the
association stipulated prices. In some other market itinerant traders
are allocated a section of the market to sell their wares on payment of
a toll. In several other cases, membership is a pre-condition for being
allocated a trading space in the market. This is so because space
allocation is predominantly handled by the executives of the
Amalgamated traders’ association who prefers to operate through the
executives of commodity associations.
In those cases where membership of the association does not lead to
obvious benefits in terms of trading space allocation the membership
rarely approaches one hundred percent where there is no necessity or
compulsion to join, traders look at the other potential benefits of
47
membership. The dispute resolution activities carried out by all
associations then appear to be the main reason for joining.
Membership of the associations is thus usually open to anyone who
wants to join. Some restrictions are, of course, applied. Omonia
(2005:27) reported that securing membership of traders’ association
is in some cases easy while in some others, a huge financial
commitment is involved. Where a government licence is required of
traders, the association normally insists that the traders first obtain
that licence before being given membership. Membership may also
be limited by the available space in a particular market. Bankrupt,
known trouble makers or people with a criminal record are usually
not allowed to join and these are reasons why members are
sometimes removed from associations. By and large, membership of
traders’ associations is open and voluntary. There is relatively no
evidence of discrimination on members on sex, race, social or
religious background.
2.8 Association Administration and Management
Most associations have a written constitution and bye-laws but some
can also be found without any written constitution, while some use
the constitution of the umbrella association as a model (FAO,
2005:77). In certain cases the constitution need to be registered
under the society Act. In other circumstances, the constitution must
48
be in accordance with pre-existing legal provisions. The constitution
stipulates the officers, their portfolios, tenure of office, meeting
schedules and various committees to be accommodated in the
association (FAO, 2005:78).
The executives of these associations are elected through a democratic
process though, like most electoral process do not often produce the
best candidate as the leadership is often monopolized by larger, more
vociferous traders (Doward et al, 2002:11).
Most associations meet as the need arises especially for those with
wide spread membership. Some commodity associations with limited
members hold their meetings weekly while in some meetings are held
monthly. The constitution of some associations provide for annual
general meetings for all members. The executives of the commodity
associations serve as a liason to the amalgamated market traders
association. The executives of the amalgamated market traders’
association liase with the government (local and state) on behalf of
the traders to protect the interest of the traders from acclaimed harsh
government policies.
The administration of the association is done through the committees
and sub-committees set up by the elected executives of the
association. These committees meet weekly carry out their duties
49
and report to the central working committee headed by the President.
The executives are not entitled to any salary but do enjoy certain
privileges for running the affairs of the association.
2.8.1 Sources of Funds
For operational efficiency and achievement of her set goals,
progressive associations must have a well defined source of funds.
The traders’ association as a self-sustaining association has her main
source of income from fees and levies paid by her members. The
membership fee is of two categories: a registration fee and life
membership payment or a registration fee and the monthly or annual
fees. These fees vary from association to association and from
market to market. Ivan (2002:19), stipulated that membership fee
vary from twenty dollars a month in Medellin market in Colombia to
less than one dollar a month in several of the markets. In Lagos,
Nigeria traders pay a non-refundable life membership fee (FAO,
2005:18). This shelf for the association, the problem of collecting
monthly or annual fees, while on the other hand discourages small
traders from joining the association. A similar situation exists in
Pokhara market Nepa as reported by Singh (2004), traders have a
choice between becoming lifetime members with one payment, or of
paying a joining fee equivalent to 40 percent of the lifetime fee, plus
an annual fee. Some traders find both options expensive and this
50
may be one reason for the relatively low membership of the
association.
Levies form another source of revenue to traders’ associations, these
come in form of sanitation, security, condolence etc. Other sources of
fund include fees for services rendered such as dispute resolution
and toll collections from tracks entering the market. In Dhaka,
Dangladesh, the association collect levy from every truck entering the
market (Harris-white, 1993).
In few occasions, donations are expected from association members
to supplement the monthly fees. Lyon (2003) reported that each
tomato trader in Accra is expected to supplement the association’s
fund with a monthly donation of one carton of tomatoes. Also in
Lagos, Nigeria application for membership has to be accompanied by
some cartons of drinks and biscuits (Omonia, 2005).
2.9 Activities of Traders Associations
Traders associations engage in series of activities that aid in the
administration and control of the market. These activities according
to Smith and Luttrell (1994), Shephard (2005) and Lyon (2003) were
to promote peace, harmony, cooperation and welfare of the traders
and the general well being of the market. These activities range from
business support to social, welfare and religious activities.
51
The list of the activities undertaken by the traders associations
include:
Dispute resolution;
Market management and security support;
Provision of market information;
Training;
Product quality improvement;
Transportation improvement
Supply control and
Social, welfare and religious activities
2.9.1 Dispute Resolution
Dispute resolution through official or legal process can be slow, costly
and time consuming. This explains in part why dispute resolution
constitutes perhaps the most important functions of most traders’
association. The dispute resolution activity is carried out by the
executive of the traders’ association or through the peace committee
set up to handle such cases. Conflict can arise between one trader
and another, a trader and a customer or a trader and his apprentice.
In any of these, the party whose right is infringed reports the
violation to the peace committee with the stipulated requirements.
Most conflicts handled by the traders’ association were amicably
resolved. The association restricts its operation to only conflicts
arising within the market.
52
The major cause of dispute is money. There are many complex credit
linkages between various stages of the marketing chain and these
often cause conflict. Despite the fact that such linkages help to boost
the entire marketing system, but the conflicts it generate have caused
several associations to voice opinion that such marketing credits
should be avoided. Producers often motivate the distribution channel
by pre-financing their activities (Rosenbroom 1983:235, Kottler and
Keller, 2008:481). Credits are extended to the wholesalers and
retailers to enable them expand their stock. Harriswhite (1981)
reported that Indian apple traders pre-finance the growing of apples
for apple farmers. Sometimes the repayment of prefinancing credit
default due to poor harvest or business failure resulting in conflict.
Other areas of conflict include trading space allocation, face-off
between master and apprentice and fight in the market between
traders over variety of causes.
2.9.2 Market Management and Security Support Activity
The management of the market is carried out by two different
systems; the external and the internal systems. The external system
is the government and the regulatory bodies that aid the existence
and maintenance of well defined sense of purpose, law and order in
the market. The internal system has to do with the traders’
53
associations in various markets. According to Onah (2006:29) these
associations act as the internal governing body of the markets and
the range of their activities differ in both types of market though the
same objectives of mutual co-existence and market growth as a profit
are being pursued. They make binding laws collect tolls, keep the
market clean, form savings and capital accumulation centres as
avenue for loans to members.
Most of the associations work closely with their markets’
management and relationship between associations and those
running the market (committees set up by the central executives) are
generally reported to be good. There is a general preference on the
part of management to work with associations, as it avoids having to
contact traders individually. Involvement by associations in running
the market can range from relatively simple day-to-day matters, such
as enforcing rules, pointing out the need for maintenance and
cleanliness, collection of levies while serious matters are referred to
the central executive. These associations are in a some-what
ambivalent position, on one hand arguing that market fees are too
high and on the other collecting these fees on behalf of management.
Meetings are held at least once a month, where issues such as
security, congestion and environmental well-being of the market are
discussed, also government policies that affect the traders such as
tax are also discussed.
54
The security of the market is a collective responsibility of all traders,
though it is a cardinal responsibility of the central executives. Every
trader in the market pays a stipulated sum annually for security
while management arranges with external security outfit or uses her
internal security network to affect the security of the market.
2.9.3 Provision of Market Information
Traders constantly talk to each other, either face to face or by phone
in order to obtain up-to-date information on market conditions and
other factors affecting their business. It is not easy to draw a line
between the market information activities the traders will carry out
whether or not they have an association and that which the
association carry out. Nevertheless, several associations do appear to
play active roles in providing market information to their members.
In the Mandalay commodity exchange, the association summaries
daily transactions and displays it on large blackboard (Shepherd
200:16). It also sends same to the Ministry of Agriculture’s Market
Information Service (MIS). In Dhaka, price information is monitored
and posted in the association’s meeting room (Harris-white,1993:7)
The tomato association monitors the price and shares this
information with other markets in Accra and the rest of the country.
The umbrella association Ghana Agricultural Products Traders’
55
Organization (GAPTO) maintain close contact with all areas of the
country and provides advice on the weather, crop production, road
conditions, pest and disease problems (Lyon, 2003). The Sugar
Traders Association, London (SAL) publishes market price for sugar
traders to aid buyer/seller negotiation.
Also, the grain dealers at Enugu, Aba and Onitsha markets
constantly, contact their suppliers in Kaduna, Kano and Maidugiri to
monitor price and supply fluctuations. In different markets,
information is exchanged between traders within the market and
other markets but these exchanges are at individual levels.
2.9.4 Training
Training does not appear to be a major activity of the traders’
associations though some still provide formal and or informal
training for their members. Heuman (1994:2) studied the coffee
market of USA and reported that the National Coffee Service
Association (NCSA) provides formal training for her members in areas
of book-keeping, processing and marketing of coffee. This has made
possible for the operators to become better business men, so that
businesses which started early mainly on an entrepreneurial basis,
have become extremely professional. Dar-es-salam association carries
out occasional training on health and health regulations for butchers
56
(Shepherd, 2005). Also butchers in Ogbete main market, Enugu
occasionally organize training on health issues for her members;
such training is supervised by the Ministry of Health. The
association also trains their members on the needs and benefits of
sanitation. This enables the market managers to maintain a high
standard of sanitation within the market.
2.9.5 Product Quality Improvement Activity
Quality according to Kotler (1990:458) is the ability to perform that
which a product is meant to perform or conformance to set standard.
Thus there are two dimensions of quality: Performance quality and
conformance quality. When a product has a high quality, it promotes
the confidence of the consumers and attracts greater patronage.
Different traders’ associations have set standards and put measures
in place to ensure that their members adhere to qualitative offerings.
In Mandalay, the Brokers, Merchants and Millers association
addressed different perceptions of quality by agreeing in 1995 on a
set of standards for foreign matter content, to be followed by all
members. Transactions in the exchange are on the basis of these
standards and there are strict procedures for the buyer to follow
when checking that the actual consignment conforms to the standard
(FAO 2006:26).
57
The Delhi apple association addressed the problems of “topping” by
allowing buyers to open boxes from the side or bottom to inspect the
contents. This inspection practice was hitherto unacceptable to
commissioned agents but the apple association intervened and
agreed that such practice should be permitted. “Topping” is a slogan
that means hiding low quality apples in the bottom of the box while
acceptable ones are placed on top. They introduced three quality
grades and seven size grades and also educate apple growers on
quality issues (Shepherd, 2005:22).
2.9.6 Transportation Improvement
Production they say is not complete until the goods get to the final
consumer. The multiplicity of distribution channel intermediaries and
the attendant cost of moving the goods through the channel adds to
the market price of the goods. In a bid to cut-down on these costs,
some traders’ associations engage in transportation improvement
activities. Eluagu and Okereke (1985) reported that the garri traders
of Imo State collectively arrange procurement visits to the rural
market to reduce transportation cost. Lyon (2003) also reported that
the tomato dealers of Accra, Ghana encourage collective procurement
arrangements and sharing of the vehicles. In some association this
activity is undertaken by union of friends with in the association,
they are an informal quasi-association (Onah, 2006:27-30).
58
Markets close to the city centres cause considerable traffic congestion
and disrupt activities within the market and the surrounding areas.
In some developed countries market associations liase with the
government in solving the problem of traffic congestion. Traders’
association in Mandalay through government assistance secured new
areas outside the city for members to construct warehouses to ease
traffic congestion (FAO 2006:35). The Delhi association worked
closely with municipal authorities to control the arrival of trucks at
the wholesale market through a staggered release from check points
at the edge of the city (Shepherd, 2005). This practice helped to
control traffic congestion.
2.9.7 Supply Regulation and Control
This is a deliberate attempt to regulate the supply of commodities in
the market aimed at controlling glut and price fluctuation. It is the
most sensitive area in which the associations are involved, in that it
can lead to allegation of cartel-like behaviour.
Most associations especially those involved in the sale of primary
commodities impose certain conditionalities making it impossible for
non-members to trade in the market (Smith and Lutrell 1994, Lyon
2003, Shepherd 2005 and FAO 2006).
59
The conditionality ranges from total ban of non-member traders to
allowing them only on specific days. While the pepper, fish, meat,
fruits and vegetable associations of Lagos markets and the wholesale
traders of Ibadan have a total ban of non-member traders, the tomato
traders of Accra allows them to sell only to members at the
associations’ agreed price, the fowl dealers of Artisan market, Enugu
permits non-members only on specific days: Wednesdays and
Sundays. Secondly, traders that get their supply form rural markets,
for instance, tomato traders of Accra have procurement schedule that
is tenaciously adhered to by all members. This ensures that no two
groups are out on procurement trip at the same time and also to
check glut. The transport improvement activity of sharing transport
vehicle is also a means of controlling supply as no market takes
supply except on an agreed procurement trip period.
Though, Smith and Lutrell, saw this as a means of improving supply.
As previously noted, the association in Delhi work with the
authorities to ensure a controlled flow of trucks into the Azadpur
market. This not only reduces traffic congestion in the market and
its environ but also minimizes the risk of price fluctuation.
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2.9.8 Social, Welfare and Religious Activities
Virtually all traders’ associations engage in social, welfare and
religious activities. The research study of Ugwuona et al (2007)
summarized the activities of traders’ associations to be welfare
centred. In a country where there is no tradition of life insurance or
where poverty level is high, loss of the breadwinner can be
disastrous. Furthermore, funerals play an important role in the
culture of many societies and can involve a significant financial
outlay. It therefore becomes eminent for people to work together in
social or work groups to provide informal insurance or saving
mechanism. Commodity traders’ association often contribute money
monthly to create a pool from which loan assistance can be rendered
to any member in need. Sometimes, within the association, traders
organize themselves into quasi-unions of rotatory savings and credit
association “Isusu”. Also in the event of burial or marriage ceremony
of members, the association often renders significant assistance.
In a bid to promote the welfare of her members, the association often
put up strong resistance as pressure group against some acclaimed
harsh government policies. Okoli (2003) cited in Ugwuona et al (2007)
reported that the Association of Fairly Used Motorcycle Importers
(AFUMI), Nnewi, petitioned Governor Chris Ngige of Anambra State
alleging threat by his Commissioner for Commerce and Industry to
demolish their building and trading facilities at the Nnewi main
61
market. The Mohammadpur agricultural produce wholesale market
traders’ association Dharka, Bangladesh made representation to the
District Commissioner and were able to reverse government decision
to ban certain vehicles from particular roads for vehicles carrying
fresh produce. The associations also organize prayer sessions and
religious gatherings for her members.
2.10 Challenges of Traders’ Associations in Nigerian Economic Development
For rapid economic development to be attained in a volatile economy
like ours, the traders’ associations have to sit-up to play a veritable
role. The importance of the market place in the eradication of poverty
cannot be jettisoned. The market traders therefore have to be
conscious of applying initiative abilities to ensuring the satisfaction of
their customers. They must not fail to realize the pivotal role that
trade plays in wealth creation and the overall ability of a nation to
exit from poverty. They must strive to achieve the optimal satisfaction
of the consumer which guarantees repeat purchase and provides
assurance for the continuous existence of the trader in the market
place. To achieve this goal, they must be fully aware of the prevailing
realities that exist in the present Nigerian society. These include:
the rising cost of living;
dwindling disposable income of families;
growing level of sophistication and maturity of the consumers;
62
advancement of information and communication technology;
market globalization facilitated by speedy communication;
massive importation of used finished goods;
increasing pressure to meet with obvious financial obligations;
dwindling value of currency;
distress and rumours of distress in the financial sector;
instability in economic policies;
deteriorating public utilities leading to a heavy financial outflow
for alternatives;
political insecurity and distress etc.
All these impact on the decision process of the consumers.
Secondly, the government must incorporate the traders and other
stakeholders in formulating policies that will affect them. As the
president of National Association of Nigerian Traders (NANTS) puts it,
“if Nigeria must grow as a nation, the perennial problems of
bureaucratic, non-inclusive, annual budget driven, incoherent, non-
evidence-based-policy-summersault-ridden-policy-process that has
failed the nation in the past must be jettisoned for an inclusive
stakeholder-based and owned consultative process. He further stated
that if Nigeria must have a vibrant industrial sector (whose
contribution to National GDP has fallen from 8.8 percent in 1990 to
4.1 percent in 2008) stakeholders must make a strong case for
addressing the debilitating supply side constraints and the lack of
63
consultation with operatives that have bedeviled the country’s policy
making and implementation process in the past.” (www.Nants, 2010)
2.11 Overview of Traders’ Associations Worldwide
Traders’ associations which are union of traders in the same product
industry or market formed for the purpose of protecting and
advancing the interest of its members exist virtually in every market.
Though, the degree of association varies from region to region. The
overview of traders’ associations worldwide is done here on regional
basis.
2.11.1 African Regional Overview
Agbogbloshie Tomato Traders’ Association (ATTA), Accra, Ghana
About 60 percent of tomatoes supplied to Accra are delivered to the
Agbogbloshie market. The Agbogbloshie Tomato Traders’ Association
was formed in 1990 to represent the tomato traders, to buy and sell
tomatoes on behalf of its members and to arrange credit for
members. Total membership is 800, almost all of whom are women.
Members all perform the same functions; traveling to producing areas
by hired truck, buying from farmers (often having earlier made
financial advances to those farmers) and then returning to sell in
Accra. While membership is not obligatory, non-members are not
allowed to sell in the market to anyone other than the Association,
which pays a low price, thus, providing a powerful incentive for all
64
traders to join. This and other market practices lead to accusations
of market manipulation. The Association does control supplies to the
market, so reducing the risk of price fluctuations. Traders are
organized into 40 groups and the Association schedules their buying
trips so that while some groups are out of Accra buying; others are
selling in the market.
The Association adopted the general constitution used by the Ghana
Agricultural Products Traders’ Organization (GAPTO), the umbrella
association of all product-specific associations. Meetings of ATTA are
attended by representatives from each of the 40 groups, who are
responsible for communicating decisions to their group members.
There are no paid employees and the executives of ATTA receive no
salary. Issues addressed at the monthly meetings include the level of
welfare payments, the high cost of transportation and the possibility
of arranging insurance for tomatoes while in transit, given the
frequency with which trucks breakdown. The feasibility of
constructing suitable stores for tomatoes in the market has also been
discussed. Considerable efforts are devoted to working out ways for
traders to pool resources and activities in order to minimize cost.
Ghana Agricultural Products Traders’ Organization (GAPTO)
Accra
Most traders involved in agricultural marketing in Ghana are
organized into associations. Usually these are associations of traders
who specialize in specific crops, such as tomatoes or onions and
65
some of the most effective associations are those operating in the
Agbogbloshie market in Accra. GAPTO was formed in 1992 as an
umbrella organization for associations in Agbogbloshie and has since
expanded its activities to embrace associations in other markets of
Accra and other parts of the country.
GAPTO actively involves itself in promoting and regulating the buying
and selling of different products and assists individual associations
in managing supply in order to avoid periodic gluts and surpluses in
the markets. Its links with farmers and traders mean that it is able
to rapidly inform its members of market conditions, production
problems, weather conditions and difficulties with the road network
and assist in taking corrective action. For instance, when tomato
fields were wiped out by viral disease in parts of Ghana in 2003,
GAPTO was able to charter trucks to take traders to the neighbouring
countries of Burkina Faso and Mali in order to secure supply. GAPTO
organizes the individual trade associations to carry out market
cleaning. It arbitrates disputes between different associations and
between their members and non-members. Its country wide network
enables it to assist traders who have advanced money to farmers,
only to find that those farmers have sold their crop to someone else.
Members of GAPTO associations are given identity cards, which help
when they want to take produce from farmers and pay at a later date.
66
GAPTO is much more than a figurehead Apex organization. It
basically supervises and manages the activities of its member
associations and provides representation to District, Municipal or
Metropolitan Councils. Each individual commodity association
contributes 30 percent of its monthly dues to GAPTO, to cover
salaries, day-to-day administration and the printing of identity cards.
Dar-es-Salaam Meat Traders Association Tanzania (DMTA)
This association represents butchers with shops all over Tanzania’s
main city. Thus, unlike other associations is not limited to a
particular location. Due to the Ominibus nature of the association, it
lacks a clear focus for its activities, which presence in a particular
market would have provided. It therefore has problem presenting a
clear justification for its existence with membership dispersed
throughout the city participation in the Associations’ meetings were
difficult. This coupled with the fact that benefits achieved such as a
limit on the taxes charged by various authorities, agreement with the
authorities on matters relating to hygiene and weighs and measures
were enjoyed by both members and non-members lead to a “free
rider” problem. In as much as a sufficient number pay their
subscription to keep the Association running others can enjoy the
benefits without any obligation.
The Association is working to improve the facilities available to
butchers in Dar-es-Salaam, such as construction of new abattoirs
67
and to ensure that part of the revenue realized from the market taxes
is used for such improvement.
Fresh Produce Retailers of South Africa Johannesburg
This association also represents traders in the Mandela market
numbering about 148. The Mandela market was carved out of the
fresh produce market at the end of apartheid, to facilitate supply to
retailers supplying black communities. Association members are
primarily wholesalers, selling to street vendors who then travel to the
black residential areas and town Johannesburg. The initial aim of
the Association was to enable Mandela traders buy in bulk from the
market agents. It assists its members in negotiation with the market
agents and in the movement of produce from the main market to the
Mandela market. The Association has also carried out other
marketing development activities such as establishing a new market
in the Soweto area of Johannesburg in November 2004, training of its
members in grades and standards, provision of information about
potential customers and securing of storage facilities. It is
represented on some committees of the fresh produce market though
inadequately. While not directly involved in the dry-to-day running of
the main market it is involved in the management of the Mandela
market. It runs a funeral club as part of its social activity. It does not
provide credit facility to its members but link them with banks.
68
Membership is voluntary, but traders wishing to be allocated space
in the Mandela market do need to be members and members have
the advantage of being able to jointly negotiate with the market
agents. Sixty percent of membership is women; there are no-paid
employees while the annual membership fee is around US $ 20. All
produce sold in the Mandela market must be purchased from the
fresh produce market agents and members are sanctioned for
bringing produce in from outside. They also are involved in dispute
resolution between members.
Busia District Produce Dealers’ Association (BUDIPRODA)
This association was founded in 1998, with membership of over 150,
around which 20 percent are women. Most members are wholesalers
who buy from producers, traders and transporters and sell in bulk to
other traders who mainly come from neighbouring Kenya.
Membership is voluntary but virtually every trader in the market is a
member. Membership benefits include conflict resolution and
assistance provided by the Association on the death of a member or
family member.
BUDIPRODA has successfully argued for a reduction in market fees
and has negotiated the improvement of the infrastructure of the
market square through resurfacing. In conjunctions with the Uganda
police force it has improved security in the market and incidence of
theft has been radically reduced. The Association does not offer
69
financial assistance to its members but rather linked them
successfully to three micro-finance institutions and taken
responsibility for tracing members in the event of loan default. The
Association encourages it members to improve their marketing skill
through workshops and courses.
The Association carry out market information activity, it links it
members by phone to share information on prices, volumes and road
conditions. BUDIPRODA does not manipulate the market and insists
on high quality offerings. BUDIPRODA members pay a one off life
membership fee of US $6 and also pay US $4 to the “muno makabi”
which means “friends in need” and is the Association’s social security
club. There are no other membership fees. Other revenue comes
from the market dues imposed by the Association. There are no paid
employees, but committee members are given allowances for
attending meeting. Dispute resolution is carried out by a Disciplinary
committee of three members. Matters discussed include payment
default and fighting in the market, the committee has the power to
levy fines on members.
Market Traders’ Association in Lagos, Nigeria
Like a typical Nigerian market, the market is characterized with
traders’ associations formed along individual products in particular
70
markets. The associations of poultry sellers, pepper sellers, meat
sellers, fruit and vegetable sellers, fish seller and foodstuff sellers
have an average membership strength of about fifty with majority
being women (Omonia, 2005).
Membership of the relevant association is obligatory to all traders,
who will not be permitted by the existing members to operate in the
market unless they join. Membership fees are paid as a one-off
lifetime fee of between N3,000 and N6,000, depending on the
association, Joining members are also expected to accompany their
applications with gifts of drinks and biscuits. The associations have
no written constitution; meetings are held weekly and attendance in
mandatory.
Resolutions from the meetings are taken seriously and treated with
prompt action. The associations have addressed issues such as the
level of market fees, harassment of traders by the police; market
construction, water supply and provision of refuse disposal facilities
(Omonia, 2005). The associations are not represented in any local
government board or committee governing the market. The
relationship between the association and the local authorities is not
cordial, while the associations see the local authorities as only
interested in raising revenue from the market; policies are often
implemented with out consultation with the traders.
71
The association offer dispute-resolution services to members provide
market information, storage and transportation services and operate
credit fund.
2.11.2 Asia Regional Overview: Mohammadpur Agricultural Produce Wholesale Market Traders
Association, Dhaka, Bangladesh.
The association was formed in 1980 following the construction of a
new wholesale market in the northern suburb of Dhaka.
Membership is about 200, consisting of commission agents and
buyers who purchase from the market and supply other markets. The
association collects membership fees and also receives a levy on every
truck entering the market. The association is active in dispute
resolution and market information which it collects and posts in the
market room for members to consult. The Dhaka’s association is
influential in the political level, it’s in regular communication and
rapour with the District Commissioner and transport authorities. The
Dhaka association got a waver on the ban for certain vehicles from
particular roads for vehicles carrying fresh produce. In 2001, the
association established a multipurpose co-operative society for its
members that have helped to enhance the living standard of
members. Loans of up to 36 months are also made to members.
72
Apple Traders’ Association, Fruit and Vegetable Market, Azadpur, Delhi, India.
Prior to 1977, Delhi had one Apple Traders’ Association known as
Apple Merchants’ Association (AMA) but with the success of the
Association in developing a new market in Azadpur, AMA splitted into
four different associations. One representing buyers of apples who
subsequently ship them to other parts of the country and three
representing commission agents who handle apples consigned by the
producers from Himalchal Pradesh, Jammu and Kashmir. All the
associations based their constitutions on that of AMA. Around
700,000 tonnes of apples are handled by the Associations annually.
Membership is not compulsory but only about 3 percent are non-
members. The Association handles the allocation of space in the
market at the beginning of each apple season. Benefit of membership
includes dispute resolution and chasing up repayment of credit.
The Azadpur market was designed to receive 400 trucks a day, but
now gets up to 1500 truck daily. This volume of business has led to
congestion. To curtail this, the apple trucks are held in checkpoint
at the outskirt of Delhi and released in staggered schedule with the
collaboration of the local authorities. The association ensures that
only high quality produce are sold with the introduction of size and
quality grading and inspection to address the issue of “topping”. The
Azadpur market is controlled by an 11-person market committee.
73
Brokers, Merchants and Millers Kahtaintaw Association, Mandalay, Myanmar
Kahtaintaw is a Buddhist festival, at which yellow robes are offered to
members of the Buddhist order. The functions of this association
thus are: to raise fund for Kahtaintaw and to run a commodity
exchange for Mandalay and North Myanmar. Membership strength is
1600 membership is open to all including non-Buddhists who
account for 8 percent of membership, while women account for only
6 percent. The members represent four stages of the marketing
chain: the commission agents, wholesalers, retailers and exporters.
Membership is restricted to those living within the Mandaley
municipality to reduce the likelihood of dishonest transactions and
make easier the enforcement of association decisions in the incident
of dispute between members. All members have identity cards, and
must wear them while on the association premises.
The association has a large trading floor with offices, library and
meeting room. Samples of produce are displayed in the association
premises with an indication of quantity in the morning. On reaching
agreement the buyer have to go to the sellers premises to collect and
pay for the purchase. The Association has a large Executive
Committee of 86 members and nine working committees. All
transactions are recorded and displayed. On a notice board and
prices subsequently summarized on a daily basis and made available
in points for a nominal fee.
74
Aside from running the commodity exchange and raising fund for
Kahtaintaid, the association is involved on produce quality
improvement. In 1995, a standard quality which all members must
conform with was introduced, to check the incidence of high-foreign
matter contents found in the produce. Buyers must collect their
purchases within day of the sale agreement being made and are
entitled to check three bags at random to confirm quality. Disputes
are comparatively rare, but when it exists it is first addressed to the
president who then traifers the matter to the working group on
conflict resolution. The association’s vice president has weekly
meetings with the Mandalay City Development Council where
important issues are discussed.
Nepal Fruit And Vegetable Wholesale Traders’ Association, Pokhara
Pokhara is in the centre of Nepal. Apart from being an important
town in its own right, it is a major tourism centre. Pokhara wholesale
market was opened in 2000, having been designed and built by an
FAO project with UNCDF funding. Before then, the traders, who buy
both on their own account and function as Commission agents, were
situated at various shops dotted around the town.
75
Traders in the market are members of a branch of the Nepal fruit and
vegetable wholesale traders’ association, which is based at the
country’s main market in Kathmandu. There are moves to establish
an independent association solely for Pokhara’s traders. Membership
is not mandatory as such only 60 percent of the traders are
members. Life membership costs around US $75, those joining an
annual basis pay US$30 to join an $1.50 yearly. Members also pay a
royalty on trading of about 20 US cents per consignment this may
explain the reluctance of some traders to join. Fees are mainly to pay
the three employees and rent office space in the market.
The association played an important role in the development of the
new market and even established an office at the site while the
market was being constructed. Its representative chairs the
committee that oversees management of the market and relationships
with the markets management are said to be excellent. The
association’s functions include dispute resolution which is mostly
associated to credit arrangements. Promotion of the market existence
by building an entrance gate on the main highway and achieving
improvements to roads leading to and inside the market.
To ensure that the market retain its function as a wholesale market,
the regulations imposing a minimum transaction quantity of 5kg are
enforced. Initially hostility to the idea of farmers selling leafy
76
vegetables in the market was dropped when it was realized that this
attracted additional retailers who would also buy products from the
wholesalers.
Social activities include sponsored blood donations. The members
donate blood to a local blood bank and are provided with a free
health check up and information on sanitation, health, and produce
handling. The association also sponsors school sports’ events,
providing free fruits to children. It also participated actively in world
food day celebrations.
Karachi Onion and Potato Merchants and Commission Agent’s Association, Pakistan
The association is an informal organization of Commission agents
who have an annual turnover of between US $400,000 and US $2m.
The association has no formal bye-laws, no employees and a
membership fee of just $4 per annum. It lacks any legal status.
Meetings are scheduled as and when required, and are easy to
organize as all members are located in the same market. Almost all of
the traders entitled to join are members, although membership is
voluntary and not linked to obtaining trade licences or space in the
market. Discussions tend to concentrate on market management
issues such as space allocation, sanitation and solid-waste disposal.
77
Dialogue with national and municipal authorities has achieved some
success related to improvements in the market and space allocation
for members. However, the Association is split between one group
that are supportive of the association and another that believes that
the management is ineffective.
2.11.3 North and South America Regional Review
The National Coffee Association of USA Incorporated (NCA) is an
umbrella association covering the coffee industry. Like all U.S. trade
associations, it offers a substantial benefit to its members and is an
asset to the industry taking major stances on issues affecting the
industry. Its accomplishments include; on the issue of coffee and
health when medical articles appeared to be linking coffee to diseases
like cancer and heart disease. The association set up a scientific
advisory committee to research to make sure that the public were
well informed. Many of the original research studies were refuted by
the research done by NCA appointed research companies.
During the International Coffee Agreement Period NCA through its
foreign affairs committee worked very closely with the U.S.
government as official trade advisors accompanying the government
officials to several international coffee meetings. They promote
78
quality control and environmental protection while keeping the
costs low.
The Regional Green Coffee Association comprises of Green Coffee
Association of New York City Incorporated, the Green Coffee
Association of New Orleans and the Pacific Coast Coffee Association.
The association has organized the coffee trade into different business
contracts accepted by all sellers on a worldwide basis. They
undertake dispute resolution work closely with the US customs, and
steamship companies, trucking companies and rail roads to ensure
prompt delivery. To ensure quality they provide a panel of cup
testers which are made available to the New York Coffee Exchange for
the adjudication of coffee quality.
The Wholesale Market Traders’ Association of Antioquia (ASOBASTOS) Medellin, Colombia
This association was found in 1978 and now has about 205
members, who are primarily wholesalers in the Antioquia market.
Around 80 percent of the traders in the market are members, who
pay a membership fee of $20 a month. The Association has four full-
time staff and is governed by a Board of Directors that meets once a
month. ASOBASTOS was initially established to protect the interests
of its members and promote dialogue with national, regional, city and
market authorities. However, with the passage of time and the
79
success recorded, its focus expanded to promoting members business
through trade fairs, business conference and advice on commercial
opportunities. The Association is not represented in the Board that
governs the Antioquia market despite repeated request for such
representation.
The Emerging Market Trade Association (EMTA) was formed in
1990 by the financial community in response to the many new
trading opportunities created by the Mexico and Venezuela debt
rescheduling under the Brandy Plan. In an effort to develop market
mechanism to trade nearly US $50 billion; face value of newly issued
debts.
Traders from major international financial institutions formed the
LDC Debt traders association. In May 1992 the name was changed
to Emerging Market Traders Association and in year 2000 assumed
its present name simply EMTA. EMTA is the principal trade group
for the emerging markets trading and investment community
and is dedicated to promoting the orderly development of fair,
efficient and transparent trading markets for emerging markets
instruments and to helping integrate the emerging markets into
the global capital markets. EMTA provides a forum that enables
participants to identify issues of importance to the trading and
investment community and, when necessary to review
alternatives and develop consensus approaches to addressing
industry problems and opportunities with the re-entrance of the
emerging market countries and companies to the central capital
80
market and the development of the internal capital markets.
Brandy bonds have been replaced by a wide variety of
Eurobonds and other financial instruments. The EMTA
sponsors a range of informational meetings and seminars each
year and also maintain an extensive website designed to provide
market participants with a wide variety of information.
2.11.4 Europe Regional Overview
The Refined Sugar Association (RSA) and the Sugar Association
of London (SAL) handles the bulk of sugar trade in United
Kingdom. They arrange regular education, training and
seminars with the senior members of the sugar trade with the
legal profession giving their time freely to talk on a variety of
subjects. Market information such as market price for sugar is
published for sugar traders to aid buyers/sellers in their
negotiation.
The Fruit and Vegetable Wholesalers’ Association of Beirut
Lebanon
The association was established in 1948 on the horse racing
track at sport city following the civil war when the City was
divided into Muslim and Christian sectors. The objective was
the establishment of a new market for all wholesalers in Beirut.
The membership is 155 traders, membership is obligatory and
81
the number of members is determined by available trading
spaces in the market. Payment of US $100 is paid monthly to
cover membership fees, electricity and cleaning services.
The association liases with the Ministry of the Economy,
providing them with price information used in making decision
on import control. Dispute resolution is also another important
function. Most disputes relate to payment; wholesalers lend
farmers money and accept deferred payment from retailers and
seek the association’s assistance when they experience
repayment problems.
2.12 Summary
In this research of “The Roles of Market Traders’ Associations
and the Economic Development of Nigeria,” the theoretical
literature review, reviewed related theoretical and empirical
studies of different scholars to ascertain what traders
association are, their motives, operations and input in economic
development with the aim to cross match it with what is
obtainable in Nigeria. This will enable the researcher to draw
valuable conclusions.
82
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter discussed the research methodology adopted in the
course of this study. This include among other things the research
design, the area of the study, nature and sources of data, population
of the study, sample size and sampling technique, survey instrument
employed and the analytical techniques. The descriptive statistics
and the statistical technicalities adopted in testing the four
hypotheses postulated in chapter one were also discussed.
3.2 Research Design
A design is a pattern, a blue print, a planned sequence of activities
that guide one’s action. A research design is a planned sequence of
activities that will guide the researcher in his investigation and
analysis on the subject matter (Onwumere, 2005:35). Research
designs can come in form of a survey, an experimental or an ex-post
facto. This study is descriptive and adopted the survey design, which
involves the collection of data from human population in obtaining,
analysing and interpreting data relating to the hypotheses.
3.3 Area of the Study
The study was conducted in the South-East Geo-political Zone of
Nigeria. Specifically, it covered dominant markets in that zone namely
Ariari market Aba in Abia State; Onitsha and Nnewi markets in Anambra
85
State; Ogbete, Oba, Nsukka and Kenyatta markets in Enugu State;
Abakpa, Effium, Onueke and Edda markets in Ebonyi State and
Okigwe, Orlu and Owerri markets in Imo State. These markets were
selected due to their economic importance.
3.4 Nature and Sources of Data
To effectively and efficiently carry out this research, two sets of data
were used.
3.4.1 Primary Data
This formed the main bulk of data for this study. The primary data
were generated through the use of questionnaire and interview. The
questionnaire questions used the Likert scale to eliminate any bias
by the respondents. Also, few open-ended questions were
incorporated into the questionnaire, to allow the respondents to freely
express themselves where appropriate.
Interview questions were designed to ferret information that cannot
be hitherto gotten through questionnaire. The executives of the
market associations and the local government where the markets
were situated and officers of Board of Internal Revenue were
interviewed.
3.4.2 Secondary Data
The researcher made use of secondary sources in gathering data for
this study. They include scholarly articles that related to the topic
86
published in journals and other relevant information obtained from
the internet.
3.5 Population of the Study
This comprises all the 358 major trader associations found in the
major markets within the South East Geo-political zone.
3.6 Sample Size
To arrive at a sample size that will be a proper representative of the
population, five key officers namely president, secretary, treasurer,
financial secretary and vice president of each of the 358 associations
were selected. From the total of 1790 key officers, Taro Yamane’s
formula (Yamane, 1964) was adopted at 5 percent allowable error to
obtain a sample size of 327 respondents.
n = N 1790 1790
1 + Ne2 = 1 + 1790 (0.05)2 = 1 +1790 (0.0025)
1790 1790
= 1+4.475 = 5.475 = 326.94 = 327 respondents
3.7 Sampling Techniques
In the course of this study, a simple stratified sampling technique
was adopted in selecting respondents. Respondents were selected
from the areas where the markets were located. Five enumerators
87
were employed by the researcher to enable a prompt coverage of the
areas covered by this study.
3.8 Pilot Survey
To assess the rate of comprehension of the questionnaire and
eliminate any likely problems, a pilot survey was conducted. The
questionnaire was administered on 30 respondents in Ogbete Main
Market, Enugu made up of the various sects of the study population.
From the survey, it was observed that some questions were not
properly framed and as such were re-phrased. Some that were
ambiguous were simplified to ensure clarity of understanding.
3.9 Validity of Test Instrument
Validity of test means that a test measures what it was supposed to
measure or was suitable for the purpose for which it was intended
(Davies, 1984). As was put through by Onwumere (2005), it is the
extent to which a measuring instrument on application performs
that, which it was designed. Validity is measured by the degree of
precision by which an instrument measures what it is intended to
measure in a given design. Validity of test instrument can be tested
with any of the following content validity, face validity, criterion
reference validity, predictive validity and construct validity. For this
study, to ascertain the extent of validity of the test instrument, the
content validity test was adopted. It entails putting side by side the
88
content of which the test is to cover with the test itself to see the
correlation (Davies, 1984). The questionnaire was pre-tested in a pilot
survey conducted in Ogbete Main Market. The respondents were
interviewed to find out whether they actually understood the
questions and to eliminate any ambiguities. Face validity was also
adopted as my supervisor certified the ability of the questionnaire
items to ferret the needed response. The outcome of the validity tests
lead to affecting some necessary corrections on the draft
questionnaire.
3.10 Reliability of Test Instrument
Reliability is the ability of a test instrument to consistently yield the
same result under similar conditions. Asika (1991:36) refers to it as
the stability, dependability and predictability of a measuring instrument.
The reliability of a test instrument can be determined through the
test-retest, alternate-form or split-half methods.
To test for reliability of the test instrument, a test-retest method was
adopted. The test instrument (questionnaire) was administered on 30
respondents in Ogbete main market in a pilot survey twice in two
weeks. The responses were collated and Pearson Product Moment
Coefficient (r) was used to determine the coefficient of the two groups
of scores. The coefficient (r) was 0.77 which reveals a high positive
correlation. Thus, the test instrument is very reliable. Beside, they
89
were designed in simple understandable language thus making
comprehension easier.
3.11 Techniques of Data Presentation and Analysis
For the presentation and analysis of data, both descriptive and
inferential statistics tools were adopted. The descriptive statistical
tools employed include tables and percentages. The inferential
statistical tool employed was the t-test statistical tool.
90
REFERENCES
Asika, N. (1991). Research Methodology in the Behavioural Sciences. Ibadan: Longman Publishers.
Davies, A. (1984). “Validating Three Tests of English Language Proficiency”. Language Testing 1, Vol.1, June 50-69.
Nwabuokei, P. (1986). Fundamental of Statistics. Enugu: Koruna
Books. Onwumere, J.U.J. (2005). “Business and Economic Research Methods.
Lagos: Don-Vinto Ltd.
Orji, J. (1996). “Business Research Methodology.” Nigeria: Meteson Publicity Company.
Yamane Taro (1964). Statistics, An Introductory Analysis 3rd Edition. New York: Harper and Row Publishers.
91
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
This chapter deals with the presentation and analysis of data
collected from the respondents as related to the research questions
and hypotheses. The presentations and analyses were done in groups
as to the sect of the sample size that provided the information, while
those questions that appeal to more than one group were analysed
jointly.
4.2 Presentation and Analysis of Data
Question five was designed to affirm or refute that consumers
without adequate knowledge of what they want are often sold fake
product at a high price.
Table 4.2.1 Rate of Agreement to the Sale of Fake Product at High Price to Unsuspecting Consumer.
Options Frequency Percentage
Strongly agree 101 31
Agree 121 37
Disagree 60 18
Strongly disagree 45 14
Total 327 100
Source: Researcher’s Field Survey, 2010
92
The table above shows that 31 percent of the respondents strongly
agree that consumers without adequate knowledge of what they want
to buy are often given fake product at exorbitant prices. 37 percent of
the respondents agreed to the assertion, but 18 percent of the
respondents disagreed while 14 percent of the respondents strongly
disagreed to the assertion.
Question Six seek to find out whether the sale of fake and substandard products by traders impacts negatively on consumers
confidence.
Table 4.2.2 Impact of Sale of Poor Quality Product on Consumers Confidence.
Options Frequency Percentage
Strongly agree 130 40
Agree 122 37
Disagree 45 14
Strongly disagree 30 9
Total 327 100
Source: Researcher’s Field Survey, 2010
The table above shows that 40 percent of the respondents strongly
agreed that the sale of poor quality product to unsuspecting consumer
impact negatively on the consumers’ confidence. 37 percent of the
respondents also agreed to this belief while 14 percent and 9 percent of
the respondents disagreed and strongly disagreed to this assertion
respectively.
93
Question Seven was designed also to find out whether price hikes by
traders affect consumers confidence.
Table 4.2.3 Impact of Price hike on Consumers’ Confidence.
Options Frequency Percentage
Strongly agree 80 24
Agree 85 26
Disagree 98 30
Strongly disagree 64 20
Total 327 100
Source: Researcher’s Field Survey, 2010
The above table revealed that 24 percent of the respondents strongly
agreed that price hike impact on consumers’ confidence. 26 percent
also agreed to this assertion, 30 percent of the respondents disagreed
to this belief while 20 percent of the respondents strongly disagreed
to this statement.
Further Analysis of the Above Table Test of Hypothesis One
Ho: Traders’ associations’ activities (hike in price and poor
product quality offering) does not negatively impact on
consumers’ confidence.
H1: Traders’ associations’ activities (hike in price and poor
product quality offering) negatively impact on consumers’
confidence.
94
Summary of the extent of the impact of hike in price and product
quality on consumers’ confidence analysed in Table 4.2.2 and
4.2.3 above is as follows:
Options Hike in Price Product Quality
Strongly Agreed 80 130
Agreed 85 122
Disagreed 98 45
Strongly Disagreed 64 30
Total 327 327
In order to test the hypothesis above, a paired sample t-test
analysis was adopted.
Table 4.2.4 Result of the Paired Sample Test using SPSS Software paired Sample Statistic.
Mean N Standard
deviation
Standard
Error Mean
Price Hike 3.00 246 1.010 .143
Product Quality
2.44 246 1.033 .146
This table displays the number of cases, mean value, standard
deviation and standard error for the pair(s) of variables compared
in the paired samples T-test procedure.
Table 4.2.5: Paired Samples Correlations of Hypothesis 1
N Correlation Sig.
Price Hike and Product Quality
246
.880
.000
95
This table displays the value of the correlation co-efficient and the
significance value for each pair of variables used in the paired
sample T-test procedure since the two variables should represent
the same group at different times or two related groups, the
correlation should be fairly high (.880) and the significance value
low (0.000) typically less than 0.05.
Table 4.2.6: Paired Samples Test of Hypothesis 1
Paired Differences t df Sig. (2-
tailed)
Mean Standard
Deviation
Standard
Error Mean
95% Confidence
Interval of the Difference
Lower Upper Price Hike and Product Quality
.560
.501
.071
.417
.703
7.897
245
.000
The table above displays the mean, standard deviation, standard
error of mean, the lower and upper limits of the 95% confidence
interval of the difference of the paired differences, the t-statistical
value, degree of freedom (df) and the statistical significance value
of the test. A low significance value for the t-test (typically less
than 0.05) indicates that there is a significant difference between
the two variables. A high positive t-statistical value 7.897 and a
low significance value 0.000 indicates that both variables (hike in
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price and poor product quality offering) impact negatively on
consumers’ confidence; Therefore, the null hypothesis is rejected.
Question Eight was designed to find out if membership of traders
association is compulsory and a prerequisite to trade in the market;
Table 4.2.7 Membership of Trader Association and Selling in the Market.
Options Frequency Percentage
Strongly agree 72 22
Agree 140 43
Disagree 30 9
Strongly disagree 85 26
Total 327 100
Source: Researcher’s Field Survey, 2010
The table above shows that 22 percent of the respondents agreed
strongly that membership of the association is a prerequisite to
trading in the market. 43 percent agreed also to this assertion, 9
percent of the respondents disagree to the assertion while 26 percent
strongly disagreed to the assertion.
97
Question Nine was designed to find out whether memberships of the
trader associations offer economic empowerment.
Table 4.2.8 Trader Associations Imperative for Economic
Empowerment of Members. Options Frequency Percentage
Strongly agree 131 40
Agree 100 31
Disagree 60 18
Strongly disagree 36 11
Total 327 100
Source: Researcher’s Field Survey, 2010
The above table displays the belief of respondents on the importance
of trader association membership to the economic empowerment of
members’ 40 percent of the respondents strongly agreed to this, 31
percent of the respondents agreed also, but 18 percent of the
respondents do not agreed that membership of trader association is
important for members economic empowerment while 11 percent of
the respondent strongly disagreed to this assertion.
Question Ten was designed to find out whether non-members
(itinerant traders) are restricted from trading in the markets.
Table 4.2.9 Market Restriction of Itinerant Traders
Options Frequency Percentage
Strongly agree 50 15
Agree 82 25
Disagree 95 29
Strongly disagree 100 31
Total 327 100
Source: Researcher’s Field Survey, 2010
98
The above table displays that 15 percent of the respondents strongly
agreed that non- member traders are restricted from trading in the
market. 25 percent of the respondents agreed also that non member
traders are restricted. But 29 percent of the respondent disagreed
that non-members are restricted from trading in the markets. 31
percent of the respondents also strongly disagreed that any
restriction exists.
Further Analysis of the Table 4.2.9
Hypothesis Two
Ho: Non-member traders’ are not significantly restricted from
bringing supplies to the markets.
H1: Non-member traders’ are significantly restricted from
bringing supplies to the markets.
Summary of the responses of the respondents on whether itinerant
traders are restricted from bringing supplies to the markets.
Options Registered Traders Constant Variable
Strongly Agree 50 82
Agree 82 81
Disagree 90 82
Strongly Disagree 100 82
Total 327 327
In order to test the hypothesis above, a paired sample t-test
analysis was adopted. According to Ugwuona (2005:84) to perform
99
a one sample t-test, compute a new variable that is equal to the
test value ……… Perform a paired t-test on the new “constant
variable” and the variable that you wish to test.
Table 4.2.10 Result of the Paired Sample Test Using SPSS
Software for Hypothesis 2
Mean N Standard
Deviation
Standard
Error Mean
Registered traders
2.75 327 1.099 .142
Constant Variable
3.08 327 0.962 .124
This table displays the number of cases, mean value, standard
deviation and standard error for the pair of responses compared in
the paired samples t-test procedure.
Table 4.2.11 Paired Samples Correlations for Hypothesis 2
N Correlation Sig.
Registered traders
responses and Constant Variable
327
.902
.001
This table displays the value of the correlation coefficient and the
significance value for the paired responses used in the paired
samples T-test procedure. Since the two sets of responses should
represent the same group at different times or two related groups, the
correlation should be fairly high (.902) and the significance value low
(0.001) less than 0.05.
100
Table 4.2.12 Paired Samples Test for Hypothesis 2 Paired Differences t df Sig.
(2-tailed)
Mean Standard Deviation
Standard Error Mean
95% Confidence Interval of the Difference
Lower Upper
Registered
traders
responses
and
Constant Variable
.333
.475
.061
.456
.211
5.431
326
.059
The table above displays the mean, standard deviation, standard
error of mean, the lower and upper limits of the 95% confidence
interval of the difference of the paired differences, the t-statistical
value, degree of freedom (df) and the significance value of the test.
The test result is considered significant if the significance value is
less than 0.05. A t-test value of 5.431 and significance value of
0.059 indicates that the result is not significant.
The implication is that the traders associations in the markets
studied do not pay attention to restriction of non-member from
bringing supplies to the markets. Though itinerant traders are
allowed but must pay a toll to the Council. The itinerant traders on
the other hand see the toll and the lack of a comfortable location in
the markets as some of the antics of the associations to restrict them
from bringing supplies to the markets. Therefore, the null hypothesis
is accepted.
101
Question Eleven was designed to find out whether traders’
associations are aware of the existence of fake and sub standard
products in the market.
Table 4.2.13 Associations Awareness of the Existence and Sale of
Fake and Substandard Products.
Options Frequency Percentage
Strongly agree 150 46
Agree 161 49
Disagree 16 5
Strongly disagree - -
Total 327 100
Source: Researcher’s Field Survey, 2010
The table above portrays that traders associations are aware of the
existence and sale of fake and substandard products in the markets.
46 percent of the respondents strongly agreed to this while 49
percent of the respondents also agreed to the assertion, mean while
only 5 percent of the respondents disagreed and non strongly
disagreed.
Question Twelve was fashioned to find out if the associations have
any mechanism to checkmate the sale of fake and substandard
products.
102
Table 4.2.14 Associations Mechanism to Checkmate Sale of Fake Substandard Products.
Options Frequency Percentage
Strongly agree 80 24
Agree 87 27
Disagree 68 21
Strongly disagree 92 28
Total 327 100
Source: Researcher’s Field Survey, 2010
The table above revealed that 24 percent of the respondents strongly
agreed that traders associations do not have the mechanism to
checkmate the sale of fake and substandard products. 27 percent of
the respondents also agreed to the assertion, but 21 percent of the
respondents disagreed, they believe that traders associations have
the mechanism to checkmate sale of fake and substandard products
in the markets. 28 percent of the respondents also strongly disagreed
that trader associations do not have the mechanism to checkmate
sale of fake and sub-standard products.
Question Thirteen was fashioned to find out if traders associations
have made enough efforts to checkmate the sale of fake and sub-
standard products.
103
Table 4.2.15 Extent to which Traders Association ensure that Only Genuine Goods are Sold.
Options Frequency Percentage
Strongly agree 110 34
Agree 104 32
Disagree 61 18
Strongly disagree 52 16
Total 327 100
Source: Researcher’s Field Survey, 2010
The table above showed that 34 percent of the respondents strongly
agreed that traders associations have not made enough effort to
ensure that only genuine products are sold. 32 percent of the
respondents also agreed to this belief. But 18 percent and 16 percent
of the respondent respectively disagreed and strongly disagreed to the
assertion.
Further Analysis of Table 4:2.15
Hypothesis Three
Ho: There is not enough effort by traders associations to ensure
that only genuine goods are traded in the markets.
Hi: There is enough effort by traders associations to ensure that
only genuine goods are traded in the markets.
Summary of traders’ responses to the extent of commitment of
traders associations to ensure that only genuine goods are sold.
104
Table 4.2.16 Extent of Commitment of Traders Associations to
ensure that only Genuine Goods are Sold.
Options Traders Constant
Strongly agree 110 81
Agree 104 81
Disagree 61 81
Strongly disagree 52 81
Total 327 324
To test the above hypothesis, a t-test analytical technique was adopted.
Table 4.2.17 t-test Result on the Extent of Effort by Traders Association to ensure that only Genuine Goods are
Sold. Traders Constant
Variable
t-value
Calculated
Table
t-value
Significance
Mean value 2.64 2.82
1.96
Standard Deviation
1.27 1.17
The above table displays the mean values of the responses of the
traders and consumers respectively and their corresponding
standard deviation, the calculated t-value and the significant
probability. The result showed a t-statistic of 1.67 obtained from a
calculation of a corresponding probability (P=0.05). The statistical
t-value at (P = 0.05) significance level is equal to 1.96. Based on
the fact that (Tc = 1.67< Tt = 1.96) t-calculated is less than the t-
1.67 0.05
105
tabulated at (P = 0.05) significance level, the null hypothesis is
accepted.
Question Fourteen was designed to ascertain whether traders
association should partner with government to fast trade development.
Table 4.2.18 Association Collaboration with Government in
Development.
Options Frequency Percentage
Strongly agree 196 60
Agree 128 39
Disagree 3 1
Strongly disagree _
Total 327 100
Source: Researcher’s Field Survey, 2010
The above table showed that 60 percent of the respondents strongly
agreed that the association should collaborate with government to
bring about development by prompt payment of taxes, rates and tolls.
39 percent of the respondents also agreed to this while only 1 percent
of the respondent disagreed to the statement.
Question Fifteen was fashion to find out whether the executive of
these association ensure that their members pay their taxes.
106
Table 4.2.19 Enforcement of Tax Payment by Traders’ Association Executive.
Options Frequency Percentage
Strongly agree 180 55
Agree 120 37
Disagree 27 8
Strongly disagree _ _
Total 327 100
Source: Researcher’s Field Survey, 2010
The table 4:2:19 above reveals that the executives of the traders’
association do not enforce the payment of taxes and rate to
government by her members. 55 percent strongly agreed to this while
37 percent merely agreed. Mean while 8 percent disagreed to the
statement and no respondent disagreed strongly.
Question Sixteen was designed to find out whether the traders
association can create job opportunities.
Table 4.2.20 Traders Associations Job Creation Potential.
Options Rate Percentage
Strongly agree 130 40
Agree 128 39
Disagree 48 15
Strongly disagree 21 6
Total 327 100
Source: Researcher’s Field Survey, 2010
107
The table above revealed that 40 percent of the respondents strongly
agreed that trader associations have the potential to create job
opportunities. 39 percent of the respondents equally agreed to this
assertion. 5 percent of the respondents disagreed and 6 percent
strongly disagreed.
Question Seventeen was designed to find out whether the traders
association can aid in infrastructural development.
Table 4.2.21 Trader Association and Infrastructural Development
Options Frequency Percentage
Strongly agree 60 18
Agree 67 21
Disagree 120 37
Strongly disagree 80 24
Total 327 100
Source: Researcher’s Field Survey, 2010
The table above revealed that 18 percent of the respondents strongly
agreed that the trader associations have the potential to aid
government in infrastructural development. 21 percent of the
respondents also agreed to this belief. Meanwhile, 37 percent of the
respondents disagreed to this statement and 24 percent disagreed
strongly.
108
Further Analysis of Tables 4:2:20 and 4:2:21
Hypothesis Four
Ho: Traders’ associations have no potentials to fast track Nigerian
economic development.
Hi: Traders’ associations have potentials to fast track Nigerian economic
development.
Table 4.2.22 The Ability of Traders Associations’ Potentials to Fast Track Nigerian Economic Development.
Options Job Creation Infrastructural Development
Strongly Agree 130 60
Agree 128 67
Disagree 48 120
Strongly Disagree 21 80
Total 327 327
To test the above hypothesis, a t-test analytical technique was
adopted.
Table 4.2.23 T-test Result on the Ability of Traders Association Potentials to Fast Track Nigerian’s Economic Development.
Job Creation
Infrastructural Development
Table t-value
Calculated t-value
Significance
Mean value 2.64 2.82
Standard Deviation
0.84 0.1
The table above displays the mean values of the responses of traders to the
ability of traders associations to create job and improve infrastructural
development respectively and their corresponding standard deviations, the
table t-value, calculated t-value and significance probability. The result
showed a calculated t-statistic 2.5. Since (Tt 196 < Tc = 2.5, = 0.05) the
null hypothesis is rejected. The implication of this result is that the
potentials of traders’ associations if well harnessed could fast track
Nigeria’s economic development.
1.96 2.5 0.05
109
REFERENCE
Ugwuona, G.E. (2005:84) Data Analysis and Interpretation A
Computer Based Approach Cheston Ltd. Enugu Nigeria.
110
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This last chapter portrays the summary of findings, conclusion,
recommendations of the researcher, contribution to the knowledge
and suggestions for further research.
5.2 Summary of Findings
This study appraised the supply regulation, product quality
regulatory and market administrative activities of market traders’
associations in Nigerian markets. The market associations exist in
virtually all the markets in Nigeria and are as old as these markets.
The findings of the study reveal the following:
(1) The relationship between the government and the traders’
associations is not very cordial. Rather than see themselves as
complimentary to each other, they appear to be in constant
disagreement. The reason may not be far-fetched, over the
years the government had marshalled-out policies aimed at
trade improvement. Essentially, these policies were sound but
the non-inclusion of the traders associations and other
stakeholders in policy formulation and inadequate consultation
has been the bane of these policies.
111
(2) The interview conducted revealed that the government does not
have an accurate database of traders in the markets and their
financial assessment. As a result, millions of naira are being
lost to dubious government revenue officials and traders. Most
traders do not pay tax, while those that do, pay the flat rate.
On the other hand, owing to the lack of an accurate database,
the tolls are often short of estimate.
(3) The traders’ associations lack a coordinated market
information gathering and dissemination system. They do not
have a database for market information such as commodity
price in other markets and at the commodity exchange, sources
of supply and credit standing of suppliers (especially for
primary commodities).
(4) From the statistical analysis, it was revealed that the traders’
associations do not have any mechanism in place to ensure
that their members sell only genuine products. The calculated
t-statistical value of 1.67 and a probability of (P = 0.05) was
less than the tabulated t-value of 1.96 at (P = 0.05). It
statistically proved that enough effort was not geared to making
sure that only genuine products are traded.
(5) Also, the statistical analyses revealed that price hike and poor
product quality impact negatively on the confidence of
consumers. (The result revealed a high positive and statistically
112
significant (t-value 7.897) and significant value 0.000). Though,
there is a significant difference on the responses of which
impacts more on consumers’ confidence.
(6) Statistical analysis revealed that non-member traders were not
significantly restricted from bringing supplies to the market (t =
5.431, sig = 0.059).
(7) Finally, the statistical analysis showed that traders’ association
has the potentials to fast track Nigeria’s economic development
if well harnessed. The result showed Tt = 1.96 < Tc = 2.5,
0.05
5.3 Conclusion
This work “The Roles of Market Traders’ Associations and the
Economic Development of Nigeria” gives an insight on contributions
of Traders Associations to the Economic Development of the Nigerian
Nation. The extent of economic development of any nation, hung
mostly on the extent of development of their economic activities
(Onah, 2006). The market place being the centre for all economic
activities and the traders associations, the players.
Over the years, the government has developed many policies aimed at
boosting trade. These policies though excellent as they were, have
113
not been able to address the developmental needs of the nation. To
reverse this trend, the perennial problem of bureaucratic, non
inclusive, annual budget driven policies must be jettisoned for a more
inclusive stakeholder based and owned consultative process.
Most developed nations have taken actions in developing a database
for all economic activities. Such comprehensive database enables the
government to have accurate information of existing economic
activities for economic planning and revenue projections. Currently,
such comprehensive database is non-existent in Nigeria and thus
creates loopholes for economic mis-projections.
There is therefore need to emulate the success factors that helped
other developed nations around the world. These success factors
include: an inclusive stakeholder based and owned consultative
process of trade policy formulation, a comprehensive database of all
business concerns and a harmonious interface between the
government and the associations.
These will help reduce the continuous frictions between the
government and the associations and increase the revenue accruing
to the nation.
114
5.4 Recommendations
(1) The government should recognize the important roles traders
play in the attainment of economic independence of any nation.
An improved dialogue with the traders could result to improved
outcome of trade and agricultural marketing policy
formulations and implementation. Government should
therefore:
- consider the potential of the associations to mobilize
traders for the purpose of marketing development and as
channels of communication and dialogue.
- incorporate the associations and other stakeholders in
policy formulation by allocating them places in relevant
committees.
- encourage traders to form associations where none
exists, but not to impose one on them.
- as much as possible avoid unnecessary criticisms of
traders but work with their associations to resolve any
issue of mutual interest.
(2) Government should through the Ministry of Commerce or any
other relevant ministry compile a comprehensive database for
all business activities. This will help to boost the revenue
accruing to the government, ease the difficulties encountered
by traders in accessing loans and reduce drastically the
115
incidence of failed loan payback. Secondly, it will provide
security information to security operatives to identify and
monitor dealers of some sensitive materials such as nitrate that
can be used in the production of explosives.
(3) The associations should develop a market information
gathering and dissemination system. They should establish
links with the Chamber of Commerce and the Commodity
Exchange to access market information and display such in
their offices as done by the Brokers, Merchants and Millers
Kahtaintaw Association, Mandalay, Myanmar etc. Modern
communication facilities like internet will help in connecting
the association with other associations and agencies to monitor
price and supply fluctuations.
(4) The association members should be made to understand that
the satisfaction of their customers translate to their profit; and
as such should strive to satisfy them. They should develop an
Internal Market Surveillance Unit (IMSU) charged with the
responsibility of identifying and black-listing members that
deal on fake, sub-standard and unwholesome products.
5.5 Contribution
Differences in development and culture of nations have made the role
of traders’ associations to vary from country to country. To achieve a
sustainable development in the trade sector of the economy, the
116
market traders associations have to be galvanized to work in
harmony with the government agencies to produce a synergy.
Source: Researcher
Source: Researcher
Foreign Producers Local Producers
TRADERS
ASSOCIATION
Government Quality Offerings
Consumers
Repeat Purchase
Profit Economic Dev.
Programmes/projects
Trade Regulations
Trade Policy Formulation
Government Incentive to
traders
Fig. 5:1 Trade Harmony Ecosystem
117
The Association should be in close, constant interaction with both
local and foreign producers. This will result in the availability of
quality offerings to the consumers. The backward loop serves as
consumers’ feedback to product quality, packaging and price. The
association should also interact with the government. Such
interaction will lead to a formation of a common platform for trade
policy formulation. The participatory consultative and stakeholder
based process will yield:
(1) Incentives to traders such as tax reduction and easier access to
loans.
(2) Trade, health and sanitary regulations to promote high
environmental protection, consumer health and satisfaction.
(3) Blue print for developmental projects.
Consumer satisfaction will lead to repeat purchase which invariably
increases the profit accruing to the traders. Part of this profit will be
paid in form of taxes to finance government’s development projects.
With this model in place, the perennial problem of failure of policy
implementation due to non-compliance will be a thing of the past.
Consequently, to checkmate non-compliance and promote timely
access to qualitative information, the association should develop a
118
Market Intelligence System (MIS). This system will comprise the
Marketing Information Gathering and Dissemination Unit (MIGDU)
and the Internal Market Surveillance Unit (IMSU). The former will
undertake the sourcing and dissemination of marketing information
while the latter identifies and blacklists members that deal on
unwholesome products. This system will promote the traders’
association and boost the confidence of consumers.
5.6 Suggestions for Further Studies
This report was based on findings from a study conducted in major
markets in the South East Geo-political zone of Nigeria. Future
research will seek to expand the area to cover more geo-political
zones. Also, the study focused on three aspects of the associations’
activities, though, theoretically justifiable but future research will
seek to include other activities of the association not considered.
MIGDU IMSU
Fig. 5:2 Market Intelligence System Source: Researcher
119
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APPENDIX A
Department of Marketing
Faculty of Business Administration, University of Nigeria, Enugu Campus.
September, 2010
Dear Sir/Madam,
I am a postgraduate student of the Department of Marketing from the
University of Nigeria, Enugu Campus. I am undertaking a research
on “The Roles of Market Traders’ Associations and the Economic
Development of Nigeria”.
The questionnaire being presented to you for completion is designed
to enable me collect information relating to the study. It is purely an
academic research for the fulfillment of requirements for an award of
M.Sc. degree in Marketing.
I also plead that you answer the questions sincerely, as the success
of this work depends on your doing so. Be assured also that any
information given will be used for the afore-mentioned purpose and
treated with utmost confidentiality.
Thanks.
Yours sincerely,
Nwankwo, Nwabueze Luke
123
APPENDIX B QUESTIONNAIRE
Please, answer the following questions by ticking on the
appropriate option box from the alternatives and fill where necessary.
SECTION A: BIO-DATA
(1) Sex: Male (b) Female
(2) Age: (a) 18-30 years (b) 31 – 40 years
(c) 41-50 years (d) 51 and above
(3) What is your highest academic qualification?
(a) WASC/NECO/GCE (b) NCE/OND
(c) HND/B.Sc. (d) MBA/M.Sc. (d) Ph.D
(e) ACCA/ICAN (f) NIMN
(4) What position do you hold in your association?
__________________________________________________________
SECTION B:
(5) Consumers do not always have perfect knowledge of the
products they are buying and as such are often given fake or
substandard products by traders at exorbitant price
(a) Agree (b) Strongly agree (c) Disagree
(d) Strongly Disagree
(6) Sale of fake and substandard products by some traders
negatively impact on consumers’ confidence.
(a) Agree (b) Strongly agree (c) Disagree
(d) Strongly Disagree
124
(7) Exorbitant price also impact negatively on consumers
confidence. (a) Agree (b) Strongly agree (c) Disagree
(d) Strongly Disagree
(8) Operating as a trader in the markets are strictly dependent on
being a member of the traders associations. (a) Agree
(b) Strongly agree (c) Disagree (d) Strongly Disagree
(9) Traders associations are imperative for economic empowerment
of individual members. (a) Agree (b) Strongly agree
(c) Disagree (d) Strongly Disagree
(10) Non members are restricted from bringing supplies into the
market. (a) Agree (b) Strongly agree (c) Disagree
(d) Strongly Disagree
(11) The traders associations are aware of the existence of fake and
sub standard products in the markets. (a) Agree
(b) Strongly agree (c) Disagree (d) Strongly Disagree
(12) Traders associations do not have the mechanism to checkmate
the sale of fake and sub-standard products. (a) Agree
(b) Strongly agree (c) Disagree (d) Strongly Disagree
(13) Traders associations have not made enough efforts to
checkmate the sale of fake and substandard products.
(a) Agree (b) Strongly agree (c) Disagree
(d) Strongly Disagree
125
(14) Traders associations should partner with Government to fast
track development through the payment of taxes, rates and tolls
(a) Agree (b) Strongly agree (c) Disagree
(d) Strongly Disagree
(15) Traders association executives do not encouraged their
members to pay tax. (a) Agree (b) Strongly agree
(c) Disagree (d) Strongly Disagree
(16) Traders associations are strong force that can help government
create jobs, and fast track development if properly, harnessed.
(a) Agree (b) Strongly agree (c) Disagree
(d) Strongly Disagree
(17) Traders associations are strong force that can help government
in infrastructural development to fast track economic development
(a) Agree (b) Strongly agree (c) Disagree
(d) Strongly Disagree
126
APPENDIX C
RELIABILITY TEST
X Y X-X Y-Y (X-X) (Y -Y) (X-X)2 (Y-Y)2
3 5 -0.01 1.33 -0.0133 0.0001 1.7689
4 6 0.99 2.33 2.3067 0.9801 5.4289
5 5 1.99 1.33 2.6467 3.9601 1.7689
2.5 4.50 -0.51 0.83 -0.4233 0.2601 0.6889
4.5 5.3 1.49 1.63 2.4287 2.6076 2.6569
5 6.3 1.99 2.63 5.2337 3.9601 6.9169
1 1 -2.01 -2.67 5.3667 4.0401 7.1289
1 1 -2.01 -2.67 5.3667 4.0401 7.1289
3 3.5 -0.01 -0.17 0.0017 0.0001 0.0289
3 3.1 -0.01 -0.57 0.0057 0.0001 0.3249
2 2.8 -1.01 -0.87 0.8787 1.0201 0.7569
2 3.2 -1.01 -0.47 -0.4747 1.0201 0.2209
2.5 3.6 -0.51 -0.07 0.0357 0.2601 0.0049
2.4 3.0 -0.61 -0.67 0.4087 0.3721 0.4489
3.5 2.9 0.49 -0.77 -0.3773 -0.4401 0.5929
2.3 2.6 -0.71 -1.07 0.7597 0.5041 1.1449
3 2.7 -0.01 -0.97 0.0097 0.0001 0.9409
3.5 2.6 0.49 -1.07 -0.5243 0.2401 1.1449
4.5 7.2 1.49 3.53 5.2597 2.6076 12.4609
2.5 2.0 -0.51 -1.67 0.8517 0.2601 2.789
Σ 60.2 Σ 73.3 0 0 Σ29.3436 Σ26.7451 Σ54.3460
127
x = Σx/n = 3.01
y = Σy/n = 3.67
Formula r = Σ(x-x) (y-y)
Σ(x-x) 2 Σ(y-y)2
= 29.3436 29.3436
26.7451 x 54.3460 = 1453.4892
= 29.3436 38.1247 = 0.769 or 0.77