Industrial Development In Nigeria Research Articles

The Effect of Capital Market on Industrial Development of Nigeria

The study examined the effect of capital market on industrial development in Nigeria for the period of 33 years spanning from 1990-2022. The independent variable employed in study are; market capitalization (MCAP), Industrial loan (INDL), Total volume (TV) and GFCF (Gross fixed capital formation), and industrial development proxy Industrial Output (INDOPT). Data were collected from the CBN Statistical Bulletin and World Bank data for 1990-2022. Data set was described using descriptive statistics, correlation analysis ARDL with the help of E-VIEW version 9.0. The study concluded that MCAP, TV have significant relationship with INDOPT both on the short & long run respectively, meanwhile GFCF has significant relationship with INDOPT only on the long run. The study thereby recommends that positive impact of total volumes calls for proper policies to be implemented so as to attract more investors to invest in the market. There is also need to relax some stringent registration and operating procedures to enable more people and organizations to participate in the market. There is also need to institute policies that will further increase the value of market transaction in the market.

Intellectual property rights protection and prospect of industrial development in Nigeria

The incidence of infringement and violation of intellectual property rights (IPRs) especially in the nature of counterfeiting and piracy has been on the increase in Nigeria; and has deprived many producers and industrialists of the benefits of their creativity. This study explores how IPRs protection influences industrial development in Nigeria using quarterly data spanning 2007Q2 and 2019Q1. The result of autoregressive distributed lag model reveals that IPRs protection exerts negative effects on industrial development due to weak enforcement and non-compliance with industry related IPRs laws which discourage individuals and firms to develop new commercialisable inventions and innovations. Based on this finding, we conclude that IPRs protection cannot significantly improved the prospects of industrial development if not properly enforced with total compliance in Nigeria. Therefore, we recommend that government should strengthen IPRs laws with formidable policies that would create incentives for firm-level innovations/inventions through knowledge creation, adequate funding for R&D in Nigeria.

Renewable Energy Financing and Sustainable Industrial Development in Nigeria

Due to the inability of renewable and non-renewable sources of energy to meet the ever-increasing industrial energy need in Nigeria, there is therefore need to explore various financing option available to execute renewable energy project that will contribute to the energy basket which will sustainably impact industrial development in Nigeria. Obtaining secondary data from World development indicator from 1980 to 2021, the study utilized the auto-regressive distributed lag method to estimate the long run impact of renewable energy financing and sustainable industrial development in Nigeria. The findings reveal that the use of external debt for financing renewable energy as well the use of energy from Combustible waste source and alternate nuclear source significantly and positively determines the development of the industrial sector in Nigeria. while the use of taxation and donation to fund renewable energy as well as the use of energy source from hydroelectric were not contributing significantly to sustainable industrial development in Nigeria. The study further recommends that relevant framework that will make investment in renewable energy as well as the utilization of renewable energy to be attractive to various stakeholders in Nigeria should be established. The underlying downside risk in renewable energy utilization and financing must be address so as to mobilize sufficient private sector investment needed to drive sustainable industrial development in Nigeria

An Econometric Analysis of Clean Energy Supply and Industrial Development in Nigeria: Implications for Sustainable Development

The continuous demand and usage of energy in large quantum for industrial purposes has motivated the global advocacy for energy sustainability (SDG-7). Against this backdrop, this study employed various econometric techniques to study the nexus between clean energy supply in Nigeria and industrial development between 1990 and 2019. This study sets to establish the nature of the relationship in the long run, direction of causality and the stochastic dynamic interaction between clean energy supply and industrial development in Nigeria. Consequently, the following findings emerged from this study; clean energy supply and manufacturing value added had a significant negative relationship. This implies that the contribution of clean energy supply is negatively significant to the manufacturing value added in the Country. Therefore, the supply of electricity production from hydroelectric sources had not led to industrial development in Nigeria. Further evidence indicates that no feedback relationship exists between clean energy supply and industrial development. Also, the stochastic dynamic interaction between clean energy supply and industrial development shows a shock to manufacturing value added determines the behavior of clean energy supply to a larger extent in one hand, whereas, variance decomposition of clean energy supply shows the similar effect on the behavior of industrial development on the other hand. In the light of the findings from this study, the following recommendations are made for the policymakers in Nigeria; in achieving the Sustainable Development Goal (SDG 7), clean energy supply could be explored for future industrial development in Nigeria, thought it currently lacks the capacity to drive the manufacturing sector of the economy. And as such, the Nigerian policymakers and other stakeholders should work hard to achieve sustainable supply of adequate electricity production from hydroelectric sources in the country.

Development infancy: explaining unsecured environments to large-scale industries in Nigeria from the frustrated-aggression theory perspectives

This paper examines security challenges on largescale industries toward achieving industrial development in Nigeria. This study does this within the framework of the frustration- aggression theory. Triangulation of sampling techniques (purposive, simple random, key informant) and methods (Focus Group Discussions, In-depth Interviews) of data collection were adopted. The paper identified extreme level of insecurity as an impediment to large-scale industrial growth. Unsecured environment arose from overconcentration of industries, weak governmental institutions and total neglect of indigenes on basic social amenities by the government and industrialists. The findings revealed over-exploitation of host-community resources and poor employment policies which triggered anger of many frustrated unemployed youths. Unsecured environment hindered economic expansion, created unpleasant political interferences that led to poor interpersonal relationship between the indigenes and industrialists, and ill-social effects. These effects led to the shortage of manpower, untimely and unnatural deaths of industrialists' and companies' owners. Also, there were short business plans by the industrialists, various courts' embargo on communal and family lands, diversification of compensation by government institutions and low patronage of investors on large-scale industries. There is a need for communal policing, effective communities welfare policies to cement the relationship between the companies and their host communities.

Intellectual property rights protection and prospect of industrial development in Nigeria

Intellectual property rights protection and prospect of industrial development in Nigeria

GLOBALIZATION AND INDUSTRIAL DEVELOPMENT IN NIGERIA: A CURSE OR CURE?

The question whether globalization and its corresponding impacts carry a blessing or curse in developing countries has been a controversial issue among both the scholars and the policymakers, against this background this study provided an empirical answer to the question whether globalisation is a curse or cure to industrial development in Nigeria between 1990 and 2019 within the framework of the Fully Modified Ordinary Least Squares (FMOLS) and Granger causality test. Consequently, the following principal findings emerged in this study. Firstly, both FDI inflows and trade openness which depict economic globalization had a negative relationship with industrial development respectively. Though, trade openness was significant while FDI inflows showed otherwise. In the same vein, a unidirectional causality ran from manufacturing value added to FDI inflows. However, no feedback relationship existed between trade openness and manufacturing value added. Therefore, this study submits that economic globalization is a curse to industrial development in Nigeria because the wave of economic globalization contributed a significant reduction in manufacturing value added in Nigeria in the last three decades. From these findings, the current wave of economic globalization could be a cure to industrial development in Nigeria, if only the policymakers in the country embark on policies that would drive the largest proportion of the inflows of FDI in the direction of manufacturing sub sector in the country. Similarly, all hands must be on deck by all the relevant stakeholders to ensure that manufactured products in Nigeria possesses value added quality to facilitate their competitiveness in the global market.

Government Expenditure and Sustainable Industrial Development in Nigeria

The development of the industrial sector remains a contentious issue in Nigeria’s economy.This research examines the impact of Government expenditure on sustainable industrial developmentin Nigeria. The research adopted Johansen co-integration and vector error correction analysis via EViews statistical software (version 10.0) for period between 1981 and 2018, to determine long-runimpact of public finance on industrial growth in Nigeria. It used time series data extracted from CBNstatistical bulletin (2018) and WDI (2018). This research adopts Wagner’s Law named after the Germanpolitical economist Adolph Wagner (1835-1917), which best explains government expenditure andindustrialization. This research study found out that government revenue is statistically insignificantbut has a positive effect on industrial development; Manufacturing Value added as a proxy (MVA), a100% change in GREV will bring about 28% changes in manufacturing output, capital expenditure ishowever statistically significant and negatively impacts industrial output, a change in CEXP will yieldless than a proportional change in MVA by about 52%, recurrent expenditure positively affectsindustrial growth, although its influence is statistically insignificant, a 100% rise in REXP will causeabout 41% increase in manufacturing sector’s growth. Also, a change in capital stock i.e. Gross FixedCapital Formation (GFCF) will lead to a significant but inelastic and less than proportional change inMVA, thereby depicting inverse relationship. Based on the findings the following conclusions weremade: Effective allocations of government revenue as well as the early release and approval of budgetproposals will have a meaningful effect on the economy, increase in sustainable investment levelalongside required equipment coupled with qualified personnel to properly manage these amenities willensure improvement of the industrial sector and finally, working incentives in form of tax incentives,promotion and salary increment should be regularly encouraged in the industrial sector in Nigeria

Morale, Productivity and Sustainable Industrial Development in Nigeria

This paper is an analytical discourse on the interface and relationship between morale and productivity and how these have impactful influence on sustainable industrial development in Nigeria. Nigeria is a developing economy that direly needs a strong root and drive for productivity and economic development. This may not be feasible except if the drivers of the economy, particularly the human factor in the production process are not appropriately motivated to energize their morale. This paper that dwelt more on library and secondary sources of materials identified that morale and productivity, though related to each other in many facets, are at the lowest ebbs in Nigeria to essentially drive sustainable industrial development akin to competitive global integrated market economy. It also observed, among others, that certain government truncated policies and poor economic environment within which the human element as factor of production do their work challenge the morale of the operators of the economy. It therefore, recommended, among others, that government policies and work environment should be employees friendly in order to adequately energize them for global practices and to ensure the steady forward movement and progression towards sustainable industrial development in Nigeria. Keywords: Morale, Productivity, Sustainable industrial development, Government policies. DOI: 10.7176/DCS/10-8-03 Publication date: August 31 st 2020

Entrepreneurship Cooperatives: Platform for Industrial Development in Nigeria

The research investigated the effort of entrepreneurship cooperatives in the industrial development of Nigeria. This was prompted by the extent to which entrepreneurship cooperatives industrial development efforts have not been adequately analyzed. The specific objectives were: to determine the contributions of entrepreneurship cooperatives to the industrial development of Nigeria, appraise the ability of entrepreneurship cooperatives to enhance production and distribution and determine the extent to which it can create employment opportunities. The questionnaires were administered, completed and returned by the 240 respondents which were randomly selected for the study from different entrepreneurship cooperatives in two states of Imo and Abia. The three hypotheses were tested using one-way analysis of variance and least square type of multiple regression analysis. The result revealed that: entrepreneurship cooperatives contribute to industrial development through industry, food sufficiency and infrastructural provisions, create employment opportunities in their domain and enhance production and distribution. It recommends that: government should assist through policy drive in the area of making funds available for industrial development through entrepreneurship cooperatives and need for massive sensitization to promote entrepreneurship cooperatives formation and encourage the existing ones.

Government Expenditure and Industrial Development in Nigeria: Long Run and Short Run Dynamics from ARDL Approach

This study estimated the long run and short dynamics between government expenditure and industrial development in Nigeria from 1981 to 2016 with the view to evaluating how the industrial sector has been influenced by variation in government expenditure. The Autoregressive Distribute Lag (ARDL) was the technique applied. We found with dismay that government expenditure has not positively affected industrial development in Nigeria both in long run and short run despite the continuous rise in government expenditure and various policies of the government towards improving industrial performance in Nigeria. Funds allocated for environmental factors of production such as electricity, road, water, communication, etc. should be appropriately utilized. Political officer holders, contractors executing capital projects, people in corridors of powers, etc. who are embroil in misappropriation or embezzlement of public fund should be properly tried and punished if found guilty.

The Changing Role of Natural Gas in Nigeria

Nigeria is richly endowed with energy resources, and the Government has been making large profits from their export. However, windfall revenues have also been affecting the Government’s responsiveness and accountability towards the people and they have brought it into collusive relationship with international oil and gas companies operating in the country. A skewed distribution of petroleum resources costs and benefits, as well as the dependence on exports exposing the public finances to volatility in the international markets have represented further major issues. As a result, energy access and power generation still represent urgent issues for action in the country. Solid biomass accounts for 74% of the primary energy consumption, while the electrification rate stands at 34% in rural areas. Active power plants are mainly gas-fired, but they face capacity, maintenance, and financial constraints. While historically natural gas has been disregarded or flared into the atmosphere because it was considered a by-product of oil due to lacking market conditions and processing capacity, today the development of a domestic market for natural gas is seen as a key priority to guarantee energy security and boost industrial development in Nigeria. A more efficient and equitable governance of the sector and management of export revenues can play a major role in this sense. In this context, this paper highlights the main current issues and underpins key policy conditions for this transition to take place in Nigeria.

The role of the civil service in the industrialization of Nigeria

The goal of berthing Nigeria's full-scale industrial revolution is yet to be achieved. All the industrial development plans have so far failed to accelerate the nation's industrialization, hence the country's low industrial base which has kept her in the league of developing nations. In fact, Nigeria has in recent times been experiencing deindustrialization, as several industries have collapsed and some others, such as Unilever and Michelin, have relocated to other countries. Several factors are responsible for Nigeria's low industrial development and they include: inadequate infrastructure (particularly, energy), poor technological base, multiple taxes and levies, and, the shortage and high cost of foreign exchange. Despite a growing body of literature on industrialization in Nigeria, not much has been written about the link between Public Service Reforms and industrialization in Nigeria. This paper examines the link between the implementation of Service Compact (Servicom) Charter and the achievement of Nigeria's industrial development policies, especially the 'Ease of Doing Business' Policy. The paper makes the case that the goal of industrializing Nigeria will not be possible without an efficient Public Service. Furthermore, the paper highlights the need for Nigerian public servants to have the right work attitude, and to be morally upright and patriotic, in order to create a business-friendly environment and to build investor confidence, so as to facilitate and accelerate the country's industrialization and overall national development. The author recommends that the Nigerian government should strengthen the implementation of the Servicom charter and also incorporate the charter into the industrialization plan.

The Need for Environmental and Safety Consciousness for Sustainable Industrial Development in Nigeria: A Review

Safety and environmental protection should be one of the strategic priorities for industries, multinational corporations, Non- Governmental organizations and indeed all Nigerians in their respective sectors. The extent of environmental and safety consciousness in Nigeria industries was reviewed in this paper. In Nigeria, industrialization and mechanization are increasing while occupational health problems are becoming prominent. On the same note, industrial development also brings, in its wake; problems of environmental pollution that often need abatement. Occupational Safety has been reported to be poor and still at infancy in Nigeria where most industries do not treat their wastes at all before discharging their effluents into the environment. The way forward for enhancing the safety and environmental consciousness were suggested. Awareness creation and enforcement are the two major steps to take to achieve a holistic safety and environmental compliance of industries

Macroeconomic Determinants of Industrial Development in Nigeria

<p>The paper focuses on the impact of macroeconomic determinants on industrial productivity in Nigeria for the period, 1981-2013. It was discovered that while the Nigerian government had embarked on a number of industrial development strategies with the sole purpose of boasting industrial productivity in Nigeria, they seem to have yielded little or no result. The macroeconomic variables in the study include industrial production index, exchange rate, consumer price index, interest rate, broad money supply, foreign direct investment, credit to manufacturing sector and gross domestic product. The study employed OLS technique and found that exchange rate exert significant positive impact on industrial productivity in Nigeria. Also, the impact of interest rate, FDI and real GDP on industrial production index is positive. On the other hand, consumer price index, broad money supply and credit to manufacturing sector exert negative impact on industrial development in Nigeria. The paper recommended that a workable M2 that can enhance credit to manufacturing sector and at the same time control interest rate to boast investment should be determined.</p>

Economic Openness and Industrial Development in Nigeria

Over the years, governments have been confronted with the implementation of a growth-oriented economic policy. The policy challenge has often been a decision between protectionist and liberalized policies. Nigeria adopted the former up to 1986. Inability of the protectionist policy to drive sustainable growth led to a policy change, in July 1986, to economic openness or liberalization. Following the adoption of policy in 1986 under the structural adjustment programme, there have been conflicting opinions on whether or not it has supported the growth of the Nigerian economy. Against this background, this study seeks to examine the effect of the economic liberalization policy on the performance of the industrial sector in Nigeria. Specifically, the study examines the extent to which changes in some key economic indicators like exchange rate, financial deepening, trade openness and lending rate account for the trend in output performance of Nigeria’s industrial sector in the post reform period. Choice of the exogenous variables was based on developments in commercial and financial sectors following the adoption of the policy. Dataover the period 1986-2014 were analyzed using econometric technique based on the Vector Error Correction Model. The study shows that rate of change in exchange rate, trade openness and lending rate exert significant negative impact on industrial output. There is also evidence of significant positive impact of financial deepening on industrial output. The Granger causality estimate shows weak causal impact of financial deepening on industrial output as well as bi-directional causation between trade openness and industrial output. There is also evidence of causal impact of industrial output on lending rate, an indication that industrial development generates demand for financial resources. The study recommends that government seeks to achieve an investment-friendly climate as well as monitor real sector operators to ensure that foreign exchange allocations are not diverted.

Harnessing the potentials of technology incubation centres (TICs) as tools for fast-tracking entrepreneurship development and actualisation of the Vision 20:2020 in Nigeria

Purpose – Entrepreneurship development in Nigeria requires the adoption and assimilation of enterprise development models from nations with replicable success stories. Technology incubation centre (TIC) is one of the potent mechanisms that launched the “BRIC nations” – Brazil, Russia, India and China – to global prominence as the five biggest emerging economies. This paper attempts to unveil the potentials of TICs as novel tools for entrepreneurship development and actualisation of the Vision 20:2020 in Nigeria. Design/methodology/approach – The authors adopt analytical and discursive approaches using qualitative and quantitative data sourced from Industrial policy documents, Goldman Sachs report, online databases of government agencies, Vision 20:2020 policy document and published articles on the subject matter. The generated data were subjected to content and thematic analyses, on the basis of which relevant conclusions were drawn. Findings – The findings from the research indicate that there are 37 TICs in Nigeria with very weak socio-economic impact on job creation, wealth creation and industrial development in Nigeria. However, for the BRIC nations, adopted as comparative models, TICs have impacted positively on job creation, wealth creation and economic development of the five nations. Research limitations/implications – The paper is essentially discursive and subjective. Further research on this subject matter should explore empirical analysis for an objective assessment of the situation. Practical implications – This paper underscores the need for harmonisation of policy objectives with policy implementation. At present, there are gaps between TIC policy objectives and woeful performance of the 37 TICs in Nigeria. Social implications – For Nigeria, to enhance job creation, wealth creation and economic development in the society, there is the need for functional TICs at local, institutional, regional, state and national levels. Originality/value – The paper unveils the gap between economic theory and practical model implementation in developing economy (Nigeria). It is a major contribution to the functionalist and structuralist debates on why policies fail.

Reforms in the Power Sector and Implications for Industrial Development in Nigeria: The Case of Difference between Six and Half a Dozen?

Constant power supply is one of the main catalysts stimulating industrial development to create jobs, fight poverty and improve the living conditions of the people. With over a population of 160 million people, Nigeria grapples with the crisis of electricity supply generating less than 4000MW Government in 2005 started the reforms in the power sector, which got a major boost in 2010 with the Power Sector Reform Roadmap that spurred huge investment in the sector. This paper critically examines the reforms in the power sector; the post privatisation performance and challenges, as well as implications for industrial development in Nigeria. The paper is premised on neoliberalism and modernisation theory. The paper argues that with the reform, several structural and institutional changes have occurred in the power sector. The performance of the sector in the post privatisation era in terms of service de livery to the private citizens and corporate bodies is still fraught ‘with inefficiency due largely to the problems of funding, transmission, gas supply among others. The paper concludes that the reform that occurred in the power sector in relation to industrial development in Nigeria is nothing but a mere replacement of public monopoly by private monopoly and can best be likened to the difference between six and half a dozen.

English

Corruption is the bane of Nigeria’s socio-economic development. This paper specifically examines critically how corruption and other associated factors led to the failure of two state-owned public institutions (automobile and steel industries) that would have launched the country into an industrial nation to reckon with, not only in Africa but also in the entire world|. Locating corruption in Nigeria within the theoretical context of neo-colonial political economy which stifled the economy led to the followings: profligacy of the state, nepotism and ethnicity in recruitment and promotion of public officers and personnel to manage the affairs of these industries as well as the unbridled accumulation of material wealth by the officers and personnel themselves at the expense of the public institutions. The hope and aspiration of Nigeria becoming an industrialised nation has been dashed. The paper concludes that unless there is a concerted effort by the state and all other stakeholders to fight against corruption in the system, the hope and aspiration of industrial development in Nigeria will remain a mirage. Key words: Corruption, industrial development, political economy, structural adjustment.

Assymetric Effect of Oil Price Shocks on Exchange Rate Volatility and Domestic Investment in Nigeria

Aim: The paper aimed at examining the asymmetric effect of oil price shock on exchange rate and domestic investment in Nigeria. Study Design: Country case study. Place and Duration of Study: Nigeria. Time series data ranging from 1970-2010. Methodology: This study utilised elaborate econometric analysis which tests the sensitivity of exchange rate, private investment, public investment, per capita income and industrial production to oil price shocks, using the Impulse Response Functions (IRFs) and Variance Decomposition (VDC) techniques within a Vector Autoregressive (VAR) framework. Results: The result clearly revealed that while government expenditure exhibited immediate positive response to oil price shock, public investment, private investment and industrial production exhibited negative response to oil price shock, further confirming the evidence of “Dutch disease” in Nigeria. The variance decomposition analysis further revealed that exchange rate, government expenditure and domestic investment were mainly affected by oil shock, particularly, in the short run. Conclusion: The study concludes that volatility in crude oil prices has negative impact on domestic investment and industrial development in Nigeria. It is recommended among other things in this study that the usual practice of sharing oil windfalls to the three tiers of government should be discouraged; rather, the central government should allocate these windfalls to priority sectors of the economy to enhance development.