Outline the economic activities that are likely to improve the effective distribution and marketing of commodities in Nigeria.

Answer Details

Effective distribution and marketing means getting the right goods to the right consumers, at the right place, time, quantity and price, at the lowest reasonable cost. Certain economic activities help to achieve this in Nigeria.

• Transportation: developing road, rail, water and air transport, and providing suitable vehicles, so that goods move quickly and cheaply from producers to markets.
• Storage and warehousing: building warehouses, silos and cold stores to preserve goods, hold stock and even out supply between seasons.
• Wholesaling and retailing: a good network of middlemen breaks bulk, spreads goods over many locations and brings them close to consumers.
• Advertising and sales promotion: informing and persuading buyers so that goods are known and demanded.
• Market research: studying consumer needs, tastes and locations so that the right goods are produced and supplied.
• Grading, standardisation and packaging: sorting goods by quality and packaging them well to protect them and make them easy to sell.
• Provision of market information and communication: spreading price and supply information so buyers and sellers can make good decisions.
• Provision of finance and credit: banks and trade credit that allow traders to buy, hold and move stock.
• Insurance: covering goods in transit and in store against loss, so trade can go on with less risk.
• Provision of markets and marketing boards: organised market places and, for some commodities, marketing boards that buy, grade and sell farm produce.
• Standardisation of weights and measures: ensuring fair dealing and consumer confidence.

Together these activities reduce the cost and delay of moving goods, widen the market, and ensure that goods reach consumers in good condition and at fair prices.