Manufacturing Sector In Nigeria Research Articles

Non-Oil Exports and Manufacturing Sector Growth in an Oil-Rich Country in Africa

Purpose: This paper presents an analysis of the effect of non-oil exports on the manufacturing sector growth in an oil-rich country in Africa – Nigeria from 1986 to 2018. In clear terms, we evaluated how manufacturing sector capacity utilization is affected by non-oil exports.
 Methods: The Ordinary Least Square (OLS) estimation technique was applied in estimating the model and was lagged by two years. The long-run relationship was determined using the traditional Johansen co-integration methodology. How manufacturing sector growth is affected by non-oil exports was evaluated using the Granger Causality technique. The Augmented Dicky-Fuller (ADF) and Phillips-Perron tests were applied to check the stationarity properties of the data.
 Results: The growth in the manufacturing sector in Nigeria has not been significantly affected by non-oil export despite the various non-oil export promotion strategies initiated by the government.
 Implication: A major implication of the finding is that the cost and access to financial services for non-oil exporters should be reduced or relaxed by the Central Bank of Nigeria. High-interest rates charged by commercial banks and little disbursement characterized by the volume of commercial banks credit affect manufacturing firms concerning acquiring modern plants and machinery which results in a poor quality of non-oil exports.

Political economy of Nigeria–South Africa foreign direct investment relations and challenges of the manufacturing sector in Nigeria, 1999–2017

ABSTRACT Although there are existing scholarly works covering a wide gamut of Nigeria–South Africa bilateral relations post apartheid, not much has been done on their investment relations, particularly between the periods 1999–2017. As such, this study seeks to bridge this gap by examining the political economy of Nigeria–South Africa foreign direct investment relations and a challenges of the manufacturing sector in Nigeria. The study employed the qualitative method of data collection and the qualitative descriptive method of data analysis. Guided by the Marxist Theory of Structuralism, the study found out that institutional weakness accounted for the low level of South African investment in the manufacturing sector in Nigeria. As such, the study recommended that the state should adopt a developmental role by investing in targeted sectors of the economy like the manufacturing sector in other to catalyse industrialisation, and to place Nigeria on the path to sustainable development.

Causality Nexus Between Electricity Consumption and Growth in Nigeria Manufacturing Sector

The study examined the causal relationship between electricity consumption and manufacturing sector’s growth in Nigeria using time series data covering the period 1986 – 2017. Multiple least square regression method was used to capture the effect of electricity consumption and other variables on manufacturing sector’s growth, with the aid of Eview software. Granger causality test was conducted to examine the direction of causality between electricity consumption and manufacturing sector’s growth. The study found that electricity consumption has positive and significant effect on the growth of the manufacturing sector. Also, the study revealed an evidence of unidirectional causality from manufacturing sector’s growth to electricity consumption. It was also infered from the trend analysis that Electricity Consumption in Nigeria has a positive and direct impact on the growth of Nigeria Manufacturing Sector. Since the study shows how electricity is vital to manufacturing sector, any impediment to electricity will grossly affect manufacturing sector’s growth. To enhance sustainable growth in manufacturing sector, appropriate reforms must come up to ensure stable electricity in Nigeria. Keywords: Electricity consumption, Causality, Trend analysis, Manufacturing sector. DOI: 10.7176/RHSS/10-6-04 Publication date: March 31 st 2020

Challenges of Manufacturing Sub-Sector to Compete in Foreign Markets: The Nigerian Experience

This research is an empirical work that focused on the challenges bedeviling the manufacturing sub-sector ability to produce products that can compete with other brands in foreign markets. The data for the study were generated from central bank of Nigeria (CBN) and world bank development indicator (WBDI) of various years. The ordinary least square (OLS) econometric technique was used on time series data of important variables of manufacturing output, trade openness and current account balance. To guide the study it was hypothesized that institutional framework and government policy towards trade liberation encourages investment overtures. The findings of the study showed that trade openness and financial support significantly influence the performance of manufacturing sub-sector to produce goods for foreign markets even though the contribution of the Nigeria manufacturing sector is quite negligible. In conclusion the study recommended that the right investment induced policies and programmes should be put in place in order to ginger investment interest and supply both domestic and foreign markets with products that compete with other brands in the global markets.

The Impact of Bank Credits on the Manufacturing Sector in Nigeria (1980-2015)

The study examined the impact of bank credits on the manufacturing sector in Nigeria from 1980 to 2015. The broad objective of the study is to examine the impact of bank credits on the manufacturing sector in Nigeria between 1980 and 2015. The econometrics methods of ordinary least squares, co-integration, error correction model and granger causality test were used as the main analytical tools. From the estimated error correction model, we found that bank credits to the manufacturing sector had a positive impact on the manufacturing sector output. Government expenditure, gross capital formation and tertiary school enrolment conforms to apriori expectation. A bank credit was found to be necessary for influencing or boosting manufacturing sector output. In addition, the granger causality result reveals that there is causal relationship between bank credits and manufacturing sector output in Nigeria. It is therefore recommended that the cost of borrowing should be reduced, and relevant authorities should maintain a sustained effort aimed at making sure that banks strictly comply with the credit concession granted to the manufacturing sector, and the government should provide social amenities and conducive environment for industrialization.

The Impact of Cost- driven Strategic Outsourcing on the Organizational Performance of Manufacturing Companies in Nigeria

The pivotal roles of the manufacturing sector in economic growth and sustainable development in both developed and developing countries have been documented in the literature. However, the highly competitive environment along with customers' demands for tailored products and services, has forced manufacturing companies, especially in Nigeria to experience slow growth. This study, therefore, seeks to determine the impact of cost drive outsourcing strategy on the organizational performance of manufacturing companies in Nigeria. The questionnaires were administered among the one hundred and twenty (120) management staff members of the sixty selected manufacturing companies in Nigeria through a purposive sampling method, and this was done personally by the researcher. Linear regression was used to analyzed and interpret the data used in this research. The study reveals that cost-driven is a major strategy that helps an organization in achieving its stated objectives in the global competitive environment. The findings further show that cost-driven has a significant impact on the organizational performance of the manufacturing sector in Nigeria. Based on the findings, the study therefore, recommends that the management of manufacturing companies should adopt strategic and well thought out outsourcing partnerships in order to continuously reduce operating costs for growth.

DOES THE USE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES CREATES AND SUSTAINS COMPETITIVE ADVANTAGE? SOME EMPIRICAL EVIDENCE

This study examined the extent to which the usage of strategic management accounting (SMA) techniques such as customer accounting and competitor accounting can create and sustain competitive advantage, with a focus on the manufacturing sector in Nigeria. Data obtained from the annual reports of fifty-six (56) publicly-quoted companies covering a 10-year period (2008-2017) were analysed using descriptive statistics, cluster analysis, cross tabulation, Chi-square test of association, and discriminant analysis. Whereas the frequency of high-adopters of customer-based and competitor-focused techniques was less than those of low-adopters, the adoption rate of SMA was noted to be generally moderate. Further, the usage of SMA positively and significantly impact competitive advantage. The observation that intense users of SMA were able to consistently outperform competitors at both the industry- and sector- level in the long-term supports the conclusion that to a large extent, SMA usage can both create and sustain competitive advantage. Seeing that it is not the mere adoption of SMA that sustains competitive advantage but its intense usage, organisations seeking strategies to improve their competitiveness may consider the rigorous application of SMA.

The Emergence of Manufacturing Industry in Nigeria (1955-1978)

In this study, the origins and development of the manufacturing sector in Nigeria is surveyed. The article has demonstrated that international capital initiated, and subsequently sustained the drive towards industrialisation in Nigeria. The state and local capital have also played an increasingly important role in the process. This study is also concerned with an analysis of relative share of the manufacturing sector in GDP in the Nigerian manufacturing sector. Its purpose is to clarify the underlying forces behind Nigerian industrialisation, the percentage distribution of some key industries of performance of the manufacturing sector among its sectors. This article further discussed the emergence of Nigerian industrialisation process. It shows that the manufacturing industry effectively started from about 1955, with multinational firms, formerly engaged in wholesale and retail trade, moving into manufacturing. The structure of the manufacturing industry thereafter showed the predominance of light consumer goods production. The capital goods sector, though quite small, expanded somewhat. The primary driving force for Nigerian industrialisation was international capital. The purpose for investment in the Nigerian manufacturing industry by international capital was to utilise the country’s human and material resources to produce for profit. This was especially important because of the decline in the rate of profitability, a rise in wage rates, and the increasing excess liquidity in the developed capitalist countries. Another reason for investments was market protection. The main force behind the Nigerian industrialisation drive was the government and the demands of indigenous Nigerian businessmen as well as international capital that provided the motive force. The various strands of these arguments have been studied, using data on the historical evolution of Nigerian industrial development so as to pinpoint its source. The overall importance of this issue would be to impute the motives, and, subsequently, to explain the structure of Nigerian industrialisation and the consequences of this structure on the development of the Nigerian economy. The manufacturing sector is the driving strength behind socio-economic development of all societies the world over.

Monetary Transmission Channel, Oil Price Shock and the Manufacturing Sector in Nigeria

Abstract Research background: The need for diversification of the Nigerian economy has been emphasized and the manufacturing sector has a major role in this. Being an oil producing country, monetary policy is an important macroeconomic policy that has always been used to manage the influence of oil price shock on the manufacturing sector. Purpose: The study examines the relationship between oil price shock, the monetary transmission mechanism and manufacturing output growth in Nigeria. Research methodology: The study applied the structural vector auto regression (SVAR) modelling technique and a descriptive analysis. Results: The results of the study show that the exchange rate is mostly affected by the oil price shock, while the monetary policy instruments and inflation rate are also very responsive to the exchange rate shock. The manufacturing sector output growth has also been shown to be strongly affected by the inflation rate and monetary policy shocks. Novelty: The study has revealed the most effective channel via which oil price shocks affect manufacturing output. The exchange rate channel of the monetary policy transmission mechanism is the most significant channel through which oil price shock affects manufacturing output growth in Nigeria. This shows that effective management of the exchange rate policy via the appropriate monetary policy approach can be used to minimize the adverse effect of oil price shocks on Nigerian manufacturing output.

Monetary Policy and the Performance of the Manufacturing Sector in Nigeria (1986-2017)

This study examined the effect of monetary policy on the performance of the Manufacturing sector in Nigeria. The explanatory variables are monetary policy rate, Treasury bills rate, Cash reserve requirement and money supply; while the dependent variable is the Manufacturing (MANU) sector output. The study adopted an ex-post facto research design and used secondary data obtained from the CBN Statistical Bulletin. The study covered a period of 32 years (1986 to 2017). The data were subjected to Augmented Dicker Fuller stationarity test to determine the best suitable econometric tool of analyses. The Autoregressive Distributive Lag (ARDL) was used for the model estimation. The results indicate that: monetary policy tools have significant effect on the manufacturing sector output in Nigeria in the short run only. The study thus concludes that monetary policy tools may not be a long run policy instrument for the growth of the manufacturing sector output in Nigeria but rather short run instruments. This study recommended that money supply and treasury bills can be used in the short run as policy instruments to maintain macroeconomic stability in Nigeria with reference to the manufacturing sector.

Governing sustainable industrial energy use: Energy transitions in Nigeria's manufacturing sector

The governance of industrial energy use in recent times has been driven by the quest for greater energy security and sustainable industrial growth. Sustainable use of energy necessitates a rethink in the production, use and governance of energy resources that stimulates and supports transition to a more effective and efficient energy system. However, how do we ensure an effective transition in industrial energy use in the midst of gross energy poverty within a developing country context? This paper explores the motives and drivers of changes in energy use within the industrial sector. Statistical data from published reports, as well as informal interviews of stakeholders in Nigeria's industrial sector were used. Following analysis of data, four important salient phases (eras) of industrial energy transition in Nigeria's manufacturing sector was established. These distinct eras are: (1) Grid-dependent era; (2) Self-generation era; (3) Industrial energy outsourcing era; (4) Industrial energy conservation era. The study reveals that: outsourcing of industrial services; cost reduction; and business realignment motives are key drivers of transitions in Nigeria's industrial sector. This paper concludes by highlighting the implications of these changes for the future of energy and sustainable industrial growth in Nigeria.

Organizational Culture and Intrapreneurship Growth in Nigeria: Evidence from Selected Manufacturing Firms

The study examines the effect of organizational culture (measured by organizational norms and organizational shared values) on intrapreneurship growth in manufacturing sector of the Nigerian economy. Survey research design was used through the administration of structured questionnaire to members of staff of Nestle Nigeria PLC and PZ Cussons Nigeria PLC. The population of the study consist 2325 and 3500 staff of Nestle Nigeria PLC and PZ Cussons Nigeria PLC respectively. Using the Raosoft sample size determination technique, a sample size of 359 was obtained. The findings revealed that, organizational culture positively and significantly affect intrapreneurship growth in manufacturing firms in Nigeria. The study further revealed that, organizational norms and organizational shared values significantly affect intrapreneurship growth in the manufacturing sector in Nigeria, with coefficient and probability values of (β1=0.982, p<0.05) and (β2=0.901, p<0.05) respectively. The adjusted coefficient of determination (adj. R squared) revealed that, organizational culture elements account for 69.8% variation in intrapreneurship growth. Thus, the study concluded that organizational culture plays a significant role in promoting intrapreneurship growth. It is recommended that, manufacturing firms should enhance their organizational norms as well as their organizational shared values towards the growth of intrapreneurship within their firms.

A Dynamic Panel Analysis of Drivers of Output Growth in the Nigerian Manufacturing Firms

Regardless of the efforts of government to revamp the manufacturing sector in Nigeria, the sub-sector has remained ineffective with dwindling output and there have been consistent fluctuations in the share of the manufacturing sub-sector to Gross Domestic Product (GDP) in Nigeria. This study therefore examines the determinants of output growth in the Nigerian formal manufacturing sub-sector. The study made use of fifty (50) formal manufacturing firms listed in the Nigerian Stock Exchange Data for the formal manufacturing firms were sourced from the Nigeria Stock Exchange (NSE) Fact Book and the Central Bank of Nigeria Statistical Bulletin 2014. The estimated models in the study were specified following the works of Sangosanya (2011). The study employed the dynamic panel data analysis (the dynamic models of the Generalized Method of Moments (GMM) and the Systemic Generalized Method of Moments (SYSGMM)) for the Nigerian formal manufacturing sub-sector. The study showed that the coefficient of operating efficiency in the GMM&SYSGMM estimate, i.e. -0.0349214 and -0.0199787 respectively showed a negative relationship between OPREF and firms’ growth. This implied that information supplied by firms about their growth indicators is at variance with their performance. This further speaks volume of the weakness of regulatory agencies to effectively monitor the performance of manufacturing firms in Nigeria. Also, the study showed that exchange rate, bank efficiency and managerial efficiency have significant positive relationship with output growth of firms. Also variables such as degree of financial development, energy infrastructural facilities and government regulations and policy have significant negative impact with output growth of firms in Nigeria. Findings revealed that all the explanatory variables identified in the study are strong determinants of firm growth in the Nigerian manufacturing sub-sector. The study recommended among others that government should formulate and implement policies that would hinder formal manufacturing firms from publishing fake report of their growth. Also, government should formulate and implement policy measures that would make imported goods more expensive and appropriate monetary policies that would make the cost of borrowing from banks (interest rate) affordable should be priotised in Nigeria.

Another Side of the Coin: Exchange Rate Movements and the Manufacturing Sector in Nigeria

This study estimated the impact of exchange rate (EXCH) movements on the manufacturing sector in Nigeria over the period 1981–2016. Time series data and ordinary least square (OLS) estimation technique were employed in this study to address the specified objective. The variables analysed were EXCH, manufacturing GDP (MGDP), government capital expenditure, foreign direct investment (FDI), credit to private sector and value of imports. From the result, it is apparent that EXCH movements play a significant role in the manufacturing sector’s performance in Nigeria. Specifically, the findings showed that EXCH, government capital expenditure (GCEXP), imports and FDI were positively related to MGDP, while credit to private sector was negatively related. Among others, the study recommends that the apex bank keep a closer watch on EXCH developments in order to keep formulating up-to-date policies that will ultimately enhance EXCH stability. This will largely contribute to the development of the manufacturing sector in the short and long run. JEL Classification: D51, F31, Q24

Macroeconomic Dynamics and the Manufacturing Output in Nigeria

AbstractThis paper examined the impact of the changes in the macroeconomic factors on the output of the manufacturing sector in Nigeria from 1981 to 2015. Preliminary evaluation of the data was conducted using both descriptive statistics and stationarity evaluation. The test indicated that not all the variables are normal. The occurrence of order integration at first level difference necessitated the deployment of the Johansen cointegration test. The findings revealed no short run association among manufacturing output and each of GDP, exchange rate, broad money supply and unemployment rate. Negative relationship existed amongst inflation rate, interest rate, exchange rate, broad money supply on one hand, and manufacturing output. The inflation rate and interest rate, were statistically insignificant. However, significant and positive relationship existed between GDP of the previous year and unemployment on the one hand and manufacturing output on the other, at 5 percent level. The results showed that manufacturing was a veritable engine of economic growth. The post estimation tests showed presence of serial correlation but evidence of heteroscedasticity existed which, made the model inefficient, but its estimator is still unbiased. The study recommended the harmonization of both fiscal and monetary policies for the attainment of macroeconomic stability and avoidance of rapid policy summersaults.

The Impact of 3D Printing Technology to the Nigerian Manufacturing GDP

3D printing can spur manufacturing rebirth in Nigeria and the World in general. There are many areas where 3D printing is creating significant change, particularly in designing and prototyping of new products, in the arts, and in visualizing abstract concepts. This is a step change from conventional manufacturing processes to rapid prototyping and layer manufacturing. This report has defined rapid prototyping, rapid manufacturing and the current technologies available to fabricate 3D components. In addition to this, it provides a brief overview of the current contributions of the Edo University Iyamho (EUI) in collaboration with the Federal University of Petroleum Resources, to sustain manufacturing research initiatives towards the development of locally fabricated 3D printer and the possible future Additive Manufacturing in Nigeria. It is anticipated that this work will benefit the Nigerian academic, research institutes, industries, thus, enhance the GDP contribution of the manufacturing sector in Nigeria.

Exchange Rate, Trade Balance And Growth In Nigeria: An Asymmetric Cointegration Analysis

Background and Statement of the Problem: It has been established that countries with high political and economic risks will draws investment funds away prospective investors from other countries, thus, such countries are at greater risks of loss of confidence in her currency stability and movement of capital to more stable economies. The aforementioned problems may discourage growth, macroeconomic stability, human capital development and institutional changes. Thus, there is the need to investigate the asymmetric cointegrating relationship, if any among the rate of exchange, trade balance and growth in Nigeria. Research Methodology and Data: With the primary assumption of the likelihood of an asymmetric adjustment process in the disequilibrium, the study deployed the M-TAR (Momentum - Threshold Autoregressive) and the TAR (Threshold Autoregressive) models. Annual data on imports, exports, domestic real income, world real income, domestic consumer price index and US consumer price index were used and this comes from the World Bank Development Indicators for the period 1960–2016 and all data are denominated in US-Dollars. Research Findings: The result shows that for the TAR model, cointegration exists among the three variables (economic growth, balance of trade and real exchange rate). An asymmetric adjustment disequilibrium process also exists. The point estimates suggest that the adjustment speed is lower when the balance of trade is worsens. The asymmetric ECM suggests that trade balance, real exchange rate and growth respond to disequilibrium and that the coefficient of domestic income and exchange rate are negative and that of foreign income is positive and statistically significant. Policy Implication: Government of Nigeria should concentrate her policy efforts towards import substitution strategy that will facilitate the production of currently imported goods locally, thereby creating sustainable employment and development of industrial manufacturing sector in Nigeria.

The Impact of Foreign Direct Investment on the Nigeria Manufacturing Sector: A Time Series Analysis

The objective of the study reveals that FDI in the Manufacturing sector exacts a positive influence on the manufacturing output and the impact is statistically significant. This result further confirms the effectiveness of economic policy of the federal government of Nigeria through the adoption of liberalized industrial and trade policies. These policies were undertaken with a view to improve efficiency and productivity, as well as to improve the competitiveness of the Nigerian manufacturing industry. The policy implication is that,in order to maintain sustainable economic growth and development, a positive domestic investment is a prerequisite for increasing the flow of foreign investment in the manufacturing sector. Nigeria, while continuing to encourage inward FDI, efforts should be made to channel it into the manufacturing sector so as to accelerate the diversification process. In addition, the implementation of policy of trade liberalization should be reviewed and implemented with caution. The policy that will further make the economy more-import dependent will not augur well for the economy.

Impact of Globalisation on Nigeria Manufacturing Sector : A Study of Selected Manufacturing Firms in Enugu

Impact of Globalisation on Nigeria Manufacturing Sector : A Study of Selected Manufacturing Firms in Enugu

Impact of Economic Reforms on Performance of the Manufacturing Sector in Nigeria

This paper explores the likely impact of economic reforms on the performance of the manufacturing sector in Nigeria. The paper utilized the Ordinary Least Squares (OLS) econometric method on data for the period 1981-2009. The Granger causality test established unilateral relationships that exist between exchange rate, electric power consumption and federal government capital expenditure. The reforms variables have not be able to alter the performance of the manufacturing sector as the present situation of the country demands it over the period under review, as such, manufacturing sector is impacting negatively on economic growth. The study reveals that exchange rate and electric power consumption that captures the reform period have positive and negative effects on manufacturing output respectively and they are statistically significant. On the other hand, other variables aforementioned impact negatively on manufacturing output and they are not statistically significant. Complementarily, the coefficient of determination test student t-test demonstrated that the adopted reforms have not significantly influenced the performance of the manufacturing sector and it has render manufacturing sector inactive to economic growth and development. Policies that would improve the international competitiveness of the Nigerian manufacturing output and improve its level of growth are strongly advocated.