The appreciation of the Naira and the
reduction of duties on food imports made food
imports cheaper than domestic staples. These
actions created biases against agricultural exports
(Forest, 1993). During the sap period (1993-2003)
on the positive side there was a rise in output
prices, improvement in production efficiency and
on an increase, in opportunities for small business
enterprises. On the negative side however, it led
to increased input prices and a sharp increase in
the cost of living relative to nominal income
(CBN/NISER, 1992) so, national-level
consumption has declined following sap
implementation. Kei, et al (1997) in their study
observed that because of the increased demand for
oil palm products, resulting from an increase in
population and income growth, relative to the low productivity of the oil palm sector, Nigeria has
become a net importer of palm oil. At the same
time, the rapid devaluation of the Naira combined
with the high transportation costs from ports to
internal markets put imported oil in a
competitively disadvantage position.
The appreciation of the Naira and the
reduction of duties on food imports made food
imports cheaper than domestic staples. These
actions created biases against agricultural exports
(Forest, 1993). During the sap period (1993-2003)
on the positive side there was a rise in output
prices, improvement in production efficiency and
on an increase, in opportunities for small business
enterprises. On the negative side however, it led
to increased input prices and a sharp increase in
the cost of living relative to nominal income
(CBN/NISER, 1992) so, national-level
consumption has declined following sap
implementation. Kei, et al (1997) in their study
observed that because of the increased demand for
oil palm products, resulting from an increase in
population and income growth, relative to the low productivity of the oil palm sector, Nigeria has
become a net importer of palm oil. At the same
time, the rapid devaluation of the Naira combined
with the high transportation costs from ports to
internal markets put imported oil in a
competitively disadvantage position.
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