CONCEPT OF TRADE

1. Trade and Self reliance

Introduction

Trade and self-reliance are crucial aspects of economic development. 

What is Trade and self reliance?Trade is  the exchange of goods and services, while self-reliance emphasizes economic independence, where individuals, communities, and nations strive to meet their needs without excessive dependence on external forces. In Nigeria, indigenous trade, apprenticeship systems, and skill acquisition have historically played a significant role in fostering self-reliance and economic sustainability even during the pre- colonial times 

 Concept of Trade

Trade refers to the buying and selling of goods and services between individuals, communities, and nations. It is a fundamental economic activity that facilitates the exchange of surplus goods for those that are scarce.It requires the use of item for exchange.In earliest times goods were used.Then later legal tender in form of currency was used.

 Types of Trade

Trade can be classified into:

Domestic Trade – This is the trade that occurs within the borders of a country. It includes:

Wholesale trade: this is large-scale purchase and resale of goods.

Retail trade:  this is Selling goods in small quantities to consumers.

2. International Trade –This consist of exchange of goods and services across different countries and national borders, examples including:

a)Export trade: Selling goods to other countries.

b)Import trade: Buying goods from other countries into one’s own country.

c)Balance of Trade: This is the difference between exports and imports.When import is more than export inflation may occur in such economy.This is common in a consuming economy where local production is low.The Nigeria economy is gradually becoming a consuming economy where almost everything is imported.On the other hand where export is more than import,the economy will grow but there will be need for increase in production to avoid scarcity of basic goods for local consumption.When export equals import there is a balance of trade.

Reasons for international trades include 

•  Uneven distribution of natural resources 

• Climatic Conditions 

•Acquisition of special skills 

• Differences in Industrial development 

Trade Impediments - there are some impediments to foreign trade or traditional trade.These includes 

-Import /Export duties or tariffs ,quantitative restrictions and exchange controls 

Structure of Nigeria’s Trade 

Nigeria’s trade system can be divided into the following structures - 

a) Alimentary products e.g. sugar,salt, Wheat flour, milk and daries,Fish and seafoods

b) Drinks and Tobacco e.g,alcoholic drinks and cigarettes 

c)Textile and footwear e.g bags, cotton yarns,boots,wool,rayon materials 

d) Iron,steel and cement 

e) Road Vehicles 

f) crude oil products e.g petrol,diesel,kerosene 

g) Industrial machinery 

 Economic of Self-Reliance

What is Self-Reliance?

Self-reliance refers to the ability of an individual, community, or nation to meet its economic, social, and technological needs without excessive dependence on external support. It promotes independence, sustainable development, and national economic stability.There can be self reliance in a Nation when there are diversity in the economy and improvement in the development of local industries.

Importance of Self-Reliance

1. It reduces dependence on imports and encourages local production and consumption.

2. Self reliance helps to boosts employment opportunities by  encouraging entrepreneurship and industrialization.

3. It can promotes sustainable economic growth by facilitating development and  utilizing local resources.

4. It encourages innovation and skill development through the enhancement of technological advancement.

5. Self Reliance Improves national security.It Reduces economic vulnerabilities from foreign economies.

Strategies for Achieving Economic Self-Reliance

-Promotion of local industries and entrepreneurship.

-Encouragement of skill acquisition and vocational training.

-Development of indigenous technology.

-Effective resource management and industrialization.

-Encouragement of the indigenous apprenticeship system.

2. Indigenous Trade and Market System in Nigeria

Indigenous trade refers to the traditional system of commerce among Nigerian communities before the introduction of modern trade practices. It was based on barter, credit transactions, and mutual trust. Some of the features of Indigenousi Trade in Nigeria are 

•Use of barter system before the introduction of money.

•Community-based trading where goods were exchanged within and between ethnic groups.

•Existence of periodic markets (e.g., every four days, weekly).

•Role of middlemen in trade and marketing processes and facilitation.

•Use of traditional currencies (cowries, manilas, trade beads, etc.).

 Market System in Nigeria

The indigenous market system in Nigeria was well-structured and served as a hub for economic activities. It included:

1. Village markets – Small markets serving local communities.

2. Periodic markets – Markets that operate on designated days in a week.For example markets named by days of the week.

3. Regional markets – Larger markets that serve multiple communities (e.g., Onitsha Market, Kano Market).

4. International trade routes – Some markets facilitated trans-Saharan and coastal trade.Examples of major indigenous markets in Nigeria:

• Idumota Market (Lagos)

• Onitsha Main Market (Anambra)

• Ariaria Market (Abia)

• Kurmi Market (Kano)

   • Suleja international market (Niger)

There are other smaller once around the country.Market size usually determines it’s popularity.

 Role of Indigenous Trade in Self-Reliance

a)Indigenous trade promotes local production and consumption.

b)It facilitates skill development and entrepreneurship.

c) It encourages wealth creation and distribution.

d) It Strengthens community-based economic systems

3. Indigenous Apprenticeship System Among Nigerian People

 Meaning of Indigenous Apprenticeship System

The indigenous apprenticeship system refers to the traditional method of transferring skills, business knowledge, and trade expertise from master traders or craftsmen to apprentices. It is a long-established system in Nigeria that fosters economic self-reliance.Some of the features of Indigenous Apprenticeship System in Nigeria include 

• Non-formal training conducted by experienced masters.

• Long-term mentorship and skill acquisition (can last for several years).

• Moral and ethical training included in business practices.

• Master-apprentice agreement – sometimes based on family ties or community trust.

• Reward system – Apprentices receive startup capital or settlement after training.

 Examples of Indigenous Apprenticeship in Nigeria

1. Igbo Apprenticeship System (IAS) – Known as Igba-Boi, this system involves young boys being trained in business by successful traders for several years before being supported to start their own businesses.

2. Yoruba Craft Apprenticeship –Common among blacksmiths, leatherworkers, and textile makers.

3. Hausa Artisanship System – Found in leatherwork, dyeing, and farming sectors.

Role of Apprenticeship in Economic Self-Reliance

• Equips individuals with lifelong skills for economic independence.

• Reduces unemployment by fostering entrepreneurship.

• Promotes wealth creation and capital formation.

• Enhances business sustainability and continuity.

4. Skill Acquisition, and Self-Reliance

Skill Acquisition, and Self-Reliance

Skill acquisition is the process of gaining practical abilities and knowledge that enhance employability and entrepreneurship. It is closely linked to trade and economic self-reliance.

Importance of Skill Acquisition for Self-Reliance

1. Reduces unemployment by promoting job creation.

2. Empowers individuals with practical, income-generating skills.

3. Boosts industrial growth by increasing the number of skilled workers.

4. Encourages innovation and local technology development.

5. Promotes self-employment through vocational trades.

 Common Skill Acquisition Areas in Nigeria

-Technical skills (welding, carpentry, plumbing).

-ICT and digital skills (coding, graphic design, digital marketing).

-Agriculture and agribusiness (fish farming, poultry, crop production).

-Handicrafts and creative arts (fashion design, bead making, pottery).

-Entrepreneurial and business skills (trading, marketing, bookkeeping).

 Government and Private Initiatives for Skill Development

Several initiatives support skill acquisition in Nigeria, including:

-National Directorate of Employment (NDE) –it is a scheme that  Provides vocational training for those that are admitted.

-Small and Medium Enterprises Development Agency (SMEDAN) – Is meant to supports entrepreneurship.

- YouWin Programme –It involves Funds given to young entrepreneurs.

- N-Power Programme – Trains Nigerian youth in various skills.

 Trade and the economics of self-reliance are essential for sustainable development. Indigenous trade systems, apprenticeship models, and skill acquisition programs have played a crucial role in Nigeria’s economic history. By promoting local entrepreneurship, reducing dependence on imports, and investing in skill development, Nigeria can achieve long-term economic self-sufficiency and growth. Trade facilitates economic exchange and wealth creation.Self-reliance reduces economic vulnerability and promotes local production.

Indigenous trade and market systems are foundational to Nigeria’s economy.Apprenticeship systems train individuals for long-term economic independence.Skill acquisition is essential for job creation and national development.