Recent trends and patterns of Nigeria's industrial development

Abstract

This paper analyzes recent trend and the spatial patterns of manufacturing in Nigeria. In particular, the paper shows that industrial development in the country involved considerable craft works firms in the early stages and grew progressively in number over the years to large-scale manufacturing. The contribution of manufacturing to industrial development of Nigeria in terms of Gross Domestic Product (GDP), capacity utilization, and percentage sourcing of local raw materials dwindled over the years. The pattern of the distribution of manufacturing industries at the city level indicates that there is a marked concentration of manufacturing establishments in the southern part of the country, and especially Lagos, Ibadan and Benin in the southwest. Other locations of relative high concentration of industrial establishments are Kano in the North; and Enugu and Port Harcourt in the southeast. Although, this paper shows that production subcontracting increased and varied amongst subcontracting firms, production subcontracting relationships are concentrated in a few locations. The paper concludes that the spatial pattern of manufacturing could change if industrialists' adopts the strategy of industrial linkages, and especially production subcontracting which has become a driving force in contemporary industrial development efforts in the world today. It is expected that the situation could be better enhanced given the ongoing privatization of industrial concerns in Nigeria. African Journal for the Psychological Study of Social Issues Vol. 9(2) 2006: 135-151