Evaluating the Impact of Trade Liberalisation on the Domestic Sugar Industry in Sokoto State

📖 ABSTRACT/OVERVIEW

This study evaluates the impact of trade liberalisation policies on the domestic sugar industry in Sokoto State, a region with historical sugarcane cultivation and refining infrastructure. Nigeria's sugar sector has been subjected to varying tariff regimes and import policies as the government attempts to balance consumer affordability with industrial development objectives. The Backward Integration Policy of the Nigerian Sugar Council mandates large sugar importers to invest in domestic production, yet gaps in implementation have allowed import competition to undercut local producers. The research adopts a descriptive survey design, collecting primary data from 90 sugarcane farmers, refinery workers, and agroindustrial managers in Sokoto and Kebbi states through structured questionnaires. Secondary data on sugar import volumes, domestic production statistics, and tariff schedules are sourced from the Nigerian Sugar Council and the Federal Ministry of Agriculture. Descriptive statistics and correlation analysis are employed in data analysis. The theoretical framework draws on the infant industry protection argument and the political economy of trade policy. The study examines the relationship between import tariff levels, domestic sugar prices, production volumes, and employment in the local sugar value chain. Findings are expected to indicate that tariff liberalisation episodes have coincided with reductions in domestic production and farmer income, validating the need for sustained protective policies for the nascent sugar refining industry. Recommendations include stricter enforcement of the Backward Integration Policy and investment in irrigation infrastructure. Keywords: trade liberalisation, sugar industry, Sokoto State, import policy, backward integration

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