Perspectives on Industrial Development in Nigeria: Issues, Challenges and Hard Choices (Advances in African Economic, Social and Political Development)

✍ Scribed by Oyeyemi Adegbite

• Publisher: Springer
• Year: 2021
• Tongue: English
• Leaves: 354
• Category: Library

✦ Synopsis

This book constitutes a critical review of Nigeria’s attempts to achieve rapid industrial development since independence from Britain in 1960. It details the issues, challenges, and hard choices confronted by Nigerian political leadership and highlights the reasons why the country ultimately failed to achieve industrial take-off in spite of its abundant human and material resources.

Chapters take a retrospective look at government industrial development policies and programs, including the steel industry, agro-allied and forest-based industries, and the industrial estate development program. The book also discusses tariff and trade policies, incentives and disincentives to foreign direct investment (FDI) in the manufacturing sector, and small and medium enterprise (SME) development. The book concludes with a look at the recent drive towards regional integration as well as the potential impact of the Economic Partnership Agreement (EPA) between the European Union and sixteen countries of West Africa. Providing an exhaustive history of Nigeria’s economic and industrial development, this volume will be of interest to researchers and students of African economics, development studies, and industrial organization, as well as policy makers in both the public and private sectors.

✦ Table of Contents

Preface
Acknowledgements
Contents
List of Tables
About the Author
Abbreviations and Acronyms
Chapter 1: The Emerging Nigerian Economy
1 Introduction
2 Emergence of Nigeria as a Political and Economic Entity
3 Nigeria and the Challenge of Nationhood
4 Growth of the Economy and Changing Structure of Production 1960-2010
5 Rebasement of National Accounts and Growth of the Economy Since 2010
6 Summary and Conclusion
References
Chapter 2: Manufacturing Sector in the Nigerian Economy
1 Introduction
2 Overview of the Manufacturing Sector
2.1 Contribution to Gross Domestic Product
2.2 Structure of the Manufacturing Sector
2.3 Employment in the Manufacturing Sector
3 Performance of the Manufacturing Sector
4 Tariff Policy and the Manufacturing Sector
5 Some Key Features of the Manufacturing Sector
5.1 Geographical Distribution of Industrial Establishments
5.2 Ownership Structure
5.3 Trades in Manufactures
5.4 Raw Material Import Dependence
5.5 Low Technology and Assembly Operations
5.6 Old Machinery and Equipment
5.7 High Cost Structure
5.8 Weak Inter-Sectoral Linkages
5.9 Creeping De-industrialization
6 Problems and Constraints Affecting the Manufacturing Sector
6.1 Infrastructural Problems
6.2 Inconsistent Government Policies
6.3 High Cost of Funds
6.4 Hostile Business Environment
6.5 Corruption and Bureaucratic Ineptitude
6.6 Poor Macro Economic Policies
6.7 Weak Institutions
6.8 Smuggling
6.9 Competition from Cheaper Imports
6.10 Inadequate Pool of Relevant Labour Skills
6.11 Lack of Executive/Managerial Capacity
6.12 Security of Life and Property
7 Summary and Conclusion
References
Chapter 3: Industrial Development Policies and Strategies
1 Introduction
2 Industrial Development Strategies from 1960 to 1985
3 SAP Induced Policies and Strategies
4 Industrial Revolution Plan
5 Why Nigeria Failed to Achieve Industrial Takeoff
6 Comparison with Other Emerging Economies
6.1 Background to the Four Countries
6.2 Demographic Indicators
6.3 Economic Indicators
6.4 Industrial Indicators
7 Summary and Conclusion
References
Chapter 4: The Nigerian Steel Industry: Retrospect and Prospect
1 Introduction
2 Historical Evolution of the Steel Industry in Nigeria
3 Overview of the Nigerian Steel Industry
3.1 Ajaokuta Steel Company Limited (ASCL)
3.2 Delta Steel Company Limited (DSC)
3.3 Inland Rolling Mills
3.4 Installed Capacity of Public Sector Owned Companies
3.5 Private Sector Rolling Mills
3.6 Flat Steel Production
4 Market Size and Demand Projections
5 Organization and Management of the Steel Companies
6 Problems and Constraints Affecting Development of a Viable Steel Industry
6.1 Lack of Political Will and Corruption
6.2 Finance
6.3 Infrastructure Support Facilities
6.4 Raw Materials
6.5 Public Ownership and Management
6.6 Manpower
6.7 Ageing Plant and Machinery
6.8 International Competition
6.9 Weak Project Management
7 Options and Prospects for Future Development
7.1 Options at Individual Enterprise Level
7.1.1 The Inland Rolling Mills
7.1.2 Ajaokuta and Delta Steel Complexes
7.2 Options at the National Level
7.3 Options at the International Level
8 Conclusion
References
Chapter 5: Resources and Opportunities for Competitive Industrial Systems in Nigeria´s Agro-allied and Forest–based Industries
1 Introduction
2 Agriculture and Agro-based Industries in the Nigerian Economy
3 Agro-Allied and Forest Resources in Nigeria
3.1 Agro-Allied Resources
3.2 Land
3.3 Food Crops
3.4 Tree Crops
3.5 Industrial Fibres
3.6 Livestock
3.7 Fisheries
3.8 Forestry Resources
4 Supply and Demand for Selected Agricultural Commodities
5 Agro-Allied Industries in Nigeria and Prospects for Future Development
5.1 Food, Beverages, and Tobacco Industries
5.1.1 Food Manufacturing
5.1.2 Beverages and Tobacco Industries
5.2 Meat Products
5.3 Dairy/Milk Products
5.4 Fruits and Vegetables Processing
5.5 Fish Products
5.6 Vegetable Oils
5.7 Grain Mill Products
5.8 Bakery Products
5.9 Sugar Products
5.10 Cocoa Products, Chocolate, and Sugar Confectionery
5.11 Manufacture of Miscellaneous Food Products
5.12 Starch
5.13 Tea
5.14 Coffee
5.15 Salt Refining
5.16 Other Food Products
5.17 Livestock Feeds
5.18 Beverage and Tobacco Industries
5.19 Distilleries and Wine Industries
5.20 Malt Liquors (Beer)
5.21 Soft Drinks
5.22 Tobacco Manufactures
5.23 Textiles, Wearing Apparel and Leather Industries
5.24 Textile Industries
5.25 Spinning, Weaving, and Finishing Textile
5.26 Made-up Textile Goods (Except Wearing Apparel)
5.27 Knitting Mills
5.28 Carpets and Rugs
5.29 Cordage, Rope and Twine
5.30 Wearing Apparel
5.31 Leather Industries
5.32 Tanneries and Leather Finishing
5.33 Manufacture of Footwear
5.34 Miscellaneous Leather Products
5.35 Manufacture of Rubber Products
5.36 Tyre and Tube Industries
5.37 Miscellaneous Rubber Products
5.38 Forest Based Industries
5.38.1 Solid Wood Industries
5.38.2 Pulp Paper and Paperboard Industries
6 Efforts Aimed at Self-Sufficiency in Selected Agricultural Commodities
7 Polices and Strategies for a Competitive Industrial System in the Agro-allied Sub-sector
8 Synthesis and Conclusion
References
Chapter 6: A Hard Look at Industrial Estate Development in Nigeria
1 Introduction
2 Industrial Policy and Goals of Industrial Estate Development
3 Review of Past Efforts at Industrial Estate Development
4 Survey of Industrial Estates in Nigeria
4.1 Distribution of Estates
4.2 Ownership and Sponsorship of Estates
4.3 Types of Industrial Estates
4.4 Size of Layouts/Estates
4.5 Facilities/Services Provided in Estates
4.6 Comparison with Other Developing Countries
4.7 Current Operational Status of Industrial Estates
4.7.1 Group A
4.7.2 Group B
4.7.3 Group C
4.7.4 Group D
4.7.5 Group E
4.7.6 Group F
5 A Critical Evaluation of the Industrial Estate Development Programme
5.1 Unrealistic Targets
5.2 Inadequate Project Planning and Management
5.3 Poor Funding of the Industrial Estate Programme
5.4 Low Physical Occupation
5.5 Political Rather than Economic Considerations in the Choice of Locations
5.6 Public Ownership and Limited Private Sector Participation
5.7 Absence of Monitoring System for Industrial Estate Development
5.8 Lack of Integration with Other Development Programmes
5.9 Failure to Appreciate the Special Requirements of Small Scale Industrialists
5.10 Inadequacy of Supporting Institutions
6 Conclusion and Policy Recommendations
References
Chapter 7: Incentives and Disincentives to Foreign Direct Investment in the Nigerian Manufacturing Sector
1 Introduction
2 Size and Origin of FDI in Nigeria
3 Direction of FDI in Nigeria Analysed by Type of Activity
4 Scope of FDI in the Manufacturing and Processing Sector
5 Recent Developments in FDI Inflows into Nigeria
6 Incentives to Attract FDI into the Manufacturing Sector
6.1 Country´s Endowments
6.2 Tax Incentives
6.2.1 Pioneer Status
6.2.2 Accelerated Depreciation Allowance
6.2.3 Tax Relief on Research and Development (R & D)
6.2.4 Tax Concession on Local Raw Materials Utilization
6.2.5 Tax Concession on Labour Intensive Mode of Production
6.2.6 Tax Concession on Local Value Added
6.2.7 Tax Concession on Investment in Economically Disadvantaged Areas
6.2.8 Tax Concession on Investment in Greenfield Sites
6.3 Effective Protection Through Import Tariffs
6.4 Export Promotion Incentives
6.5 Export Processing Zones
6.6 Administrative Support Incentives
7 Disincentives to FDI in the Manufacturing Sector
7.1 Corruption
7.2 Ease of Doing Business
7.3 Infrastructural Problems
7.4 Political Instability
7.5 Law and Order
7.6 Due Process and Rule of Law
7.7 Economic Uncertainty
7.8 Weak Policy Environment and Safety of Investment
7.9 Inadequate Pool of Required Labour Skills
7.10 Trade Off between Incentives and Disincentives
8 Improving on the Gains from FDI
9 Summary and Conclusion
References
Chapter 8: An Appraisal of the Export Potential of Made-in-Nigeria Goods
1 Introduction
2 Role of Export in National Development
3 An Overview of Nigeria´s Export Trade
4 Opportunities for the Development of Made-in-Nigeria Goods
5 Potential Export Markets for ``Made-in-Nigeria´´ Goods
6 Problems and Constraints of Made-in-Nigeria Goods
6.1 High Cost Structure and Poor Infrastructure
6.2 Quality Standards
6.3 Restrictive Trade Practices
6.4 Marketing Skills
6.5 Research and Development
6.6 Tariff and Non-Tariff Barriers
6.7 Transport and Communication
7 Strategies for Export Development
8 Summary and Conclusion
References
Chapter 9: Tariff Harmonization in West Africa and Africa: Prospects for the Nigerian Manufacturing Sector
1 Introduction
2 Background to ECOWAS CET
3 Customs Tariff Regime in Nigeria
4 Tariff Comparison Between Nigeria and UEMOA
5 Problems and Prospects for Nigerian Manufacturing Sector Under ECOWAS CET
6 The Challenge of Africa Continental Free Trade Area (AfCFTA)
7 Summary and Conclusion
References
Chapter 10: Future of the Manufacturing Sector in West Africa Under the Economic Partnership Agreement with the European Union
1 Introduction
2 Size of West African Economy and Structure of Production
3 Overview and Performance of the Manufacturing Sector
4 Problems and Constraints to Industrial Development in West Africa
5 Potential Impact of EPA on the Manufacturing Sector
6 Prospects for the Manufacturing Sector under EPA Final Provisions
7 Implications of African Common Market and Future External Trade Relations
8 Conclusion
References
Chapter 11: Small and Medium Enterprise Development Under the Structural Adjustment Programme in Nigeria
1 Introduction
2 Small Business and the Nigerian Economy
3 Entrepreneurship Development Programmes
4 National Directorate of Employment
5 World Bank-Assisted SME II Programme
6 National Economic Reconstruction Fund
7 Empretec Nigeria
8 Technology Business Incubation Centres
9 People´s Bank of Nigeria
10 Community Banks
11 Model Industrial Estates
12 Industrial Development Centres
13 UNDP-Assisted SME Development Programme
14 Critical Appraisal of SME Development Programmes
15 Conclusion
References
Chapter 12: Business Incubators and Small Enterprise Development in Nigeria
1 Introduction
2 Business Incubation Concept
3 Types and Roles of Business Incubators in Nigeria
3.1 Industrial Business Incubators
3.2 Technology Business Incubators
4 Survey of Business Incubators in Nigeria
4.1 Industrial Business Incubators
4.2 Technology Business Incubation Centres
5 Needs Assessment of Business Incubators in Nigeria
6 Policy Issues and Recommendations
6.1 Ownership and Sponsorship
6.2 Legal Status
6.3 Size of Incubators
6.4 Linkage with Industrial Estates
6.5 Post Incubation Location
6.6 Coordination with Other SME Support Institutions
6.7 Management of Incubators
6.8 Admission and Exit of Tenant Firms
6.9 Potential for Self-Financing
6.10 Subsidization of Rent and Other Facilities
6.11 Cooperation with Large-Scale Firms
6.12 Opportunity for Outright Purchase of Incubator Units
7 Conclusion
8 Postscript
8.1 Recent Developments on Technology Business Incubation Centres in Nigeria
References
Chapter 13: Policies and Strategic Issues in Promoting Rapid Industrial Development in Nigeria
1 Introduction
2 Visionary and Enlightened Political Leadership
3 National Development Plan and Strategy
4 Infrastructure Support for Industrial Development
5 Priority Industries to Drive Industrial Development
6 Incentives for Industrial Development
7 Employment and Manpower Development
8 Technology Acquisition and Development
9 International Competitiveness
10 Foreign Direct Investment
11 Foreign Aid and Technical Assistance
12 Foreign Exchange Rate Policy
13 Local Content and Raw Materials Development
14 Industrial Dispersal and Infrastructure
15 Information Flow and Market Mechanism
16 Private Sector Participation
17 Enabling Environment and Supporting Institutions
18 Industrial Master Plan and Strategy
19 Concluding Remarks and Lessons of Experience
References
Appendices
Appendix 1: Nigeria´s Gross Domestic Product at 2010 Constant Basic Prices (N′ Billion) 2010-2019
Appendix 2: Naira/Dollar Official Exchange Rate at Year End, 1960-2020
Appendix 3: Nigeria´s External Reserves 1960-2020 As At Year End
Appendix 4: Nigeria´s 36 States and the Federal Capital Territory
Index