Abstract
Since the inception of the Nigerian government economic reform programme in 1986, various incentives have been granted to the manufacturing sector, as a means of lifting the sector from the constant low level of performance and contribution to GDP. This paper sets out to find out how these various government incentives have impacted on manufacturing output – with specific focus on the food sub sector. By studying the operating profile of selected food-manufacturing companies, using the Pearson correlation analysis with relevant output, employment and price index variables, it was found that the benefits of these incentives appear not to have been passed on to the general public. It is thus recommended that bench-mark performance expectations be set for manufacturers as a pre-condition for granting incentives in subsequent dispensations.
Highlights
The Nigerian manufacturing sector has been a major beneficiary of government incentives since independence in 1960
We attempted to investigate the relationship between the numerous incentives granted to the manufacturing sector by government and output of the sector, as well as with the price level of manufactures and employment created in the sector
This is borne out of the fact that many have wondered whether these manufacturers consume or totally appropriate government incentives to them or pass the benefits on to society in terms of lower factory-gate prices for manufactures and employment creation
Summary
The Nigerian manufacturing sector has been a major beneficiary of government incentives since independence in 1960 This has been due to the poor state of the sector prior to independence when, for example, the share of manufacturing in gross domestic product GDP was only 5 per cent. The question that arises is the extent to which various government efforts through granting of production concessions and incentives, among others, have helped (or otherwise) to assist the sector in enhancing stability of prices of manufactures as well as employment and gross output in the sector. An effort is made to investigate the state of affairs in selected quoted companies in the food and beverages segment of the manufacturing sector, in determining the impact of government incentives on standard of living of the Nigerian populace through the reduction in prices or creation of employment.
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