Nigerian Manufacturing Sector Research Articles

Impact of Power Supply on the Performance Nigerian Manufacturing Sector: 1999-2018

Impact of Power Supply on the Performance Nigerian Manufacturing Sector: 1999-2018

Impact of asset intensity and other energy-associated CO2 emissions drivers in the Nigerian manufacturing sector: A firm-level decomposition (LMDI) analysis

The study considered the impacts of asset intensity and other energy-associated CO2 emissions drivers in the Nigerian manufacturing sector from 2010 to 2020. The Logarithmic Mean Divisia Index (LMDI) was used to explore the driving factors of CO2 emissions: asset intensity, economic output, economic structure, energy intensity, energy mix, and carbon emission coefficient. From the results, the CO2 emissions decreased from 7.49 MtCO2 in 2010 to 3.22 MtCO2 in 2020. Furthermore, among the emissions drivers, the energy mix effect increased CO2 emissions by 0.50 MtCO2, followed by asset intensity (0.29 MtCO2) and economic structure (0.11 MtCO2). The energy intensity, economic output, and emission coefficient effects inhibited CO2 emissions by −4.64 MtCO2, −0.42 MtCO2, and −0.01 MtCO2 respectively. The contribution of the subsectors' emissions shows that the Other Manufacturing subsector emitted 14.62 MtCO2, while Chemical and Pharmaceutical emitted 14.61 MtCO2, Food, Beverages and Tobacco, 7.55 MtCO2, Textile, Apparel, and Footwear, 6.63 MtCO2, Basic Metal and Iron and Steel, 5.15 MtCO2, Plastic and Rubber Products, 2.99 MtCO2, Agro-Allied, 2.71 MtCO2, Oil Refining, 2.01 MtCO2, and Pulp and Paper Products, 1.76 MtCO2. The results indicated that the effect of asset intensity on emission growth is significant and should not be overlooked. Likewise, the effects of CO2 emission drivers were found to impact differently across the subsectors. The latter suggests that firm-specific indicators in the respective subsectors should be one of the primacies during policy development since the driving factors of CO2 emissions fluctuate across the subsectors.

Export Diversification Drive: The Role of Nigerian Manufacturing Sector

Export Diversification Drive: The Role of Nigerian Manufacturing Sector

Impact of Banks’ Credits and Capital Market Dynamics on the Performance of the Manufacturing Sector in Nigeria: An ARDL Bounds Testing Approach

In this study, we examined the impact which bank credits and some capital market variables had on the performance of the Nigerian manufacturing sector. Secondary time series data from 1986 to 2017 was used which was analysed using an ARDL bounds testing to cointegration. The results showed that while MCR negatively and significantly impacted on manufacturing output, TVTR and ASI positively and significantly increased the growth of the manufacturing output. BCRM, on the other hand, impact on manufacturing output was positive but insignificant. We made some recommendations.

Nigeria-China Bilateral Relations: Re-examining the Trajectory of the Nigerian Manufacturing Sector

Nigeria-China trade and investment relations are claimed to move to the advantage of China. Hence, the more their trade relation flourishes, the more Nigeria experiences trade deficits, and the more China records trade surpluses. In this scenario, Nigeria depends more on imports from China than China. That is why Nigerian market is overflowed with Chinese made products such as cell phones, television sets and so forth. The study examined how Nigeria-China relations impact on the manufacturing sector in Nigeria. The study employed secondary source of data collection and relied on ‘content analysis’ as a technique for data analysis. There has been recorded failure of Nigeria to compete favourably with China in terms of import and export of manufactured products. The manufacturing sector in Nigeria remains far behind to commensurately compete with China’s. Over concentration on the oil sector is directly linked to over reliance of the Nigerian economy on oil sector. The study draws a paradigm shift from the argument that China relations with Nigeria is imperialistic, to a hypothesis that the failure of the Nigerian government to adequately reposition Nigerian manufacturing to a globally competitive status through research and development as well as human capacity building, is thus, mainly responsible. The disarticulated economic structures Nigeria is currently maintaining is less capable of guaranteeing the development of the manufacturing sector that can enjoy competitive advantages in the international markets. Policy actions that are geared towards human capacity building and provision of sustainable incentives to local investors are needed.

Firm-Learning and Productivity in Nigeria's Manufacturing Sector

ABSTRACT: The manufacturing sector plays a strategic role as a major contributor to economic growth and development. However, the harsh business environment in Nigeria has constrained learning and capability building in the Nigerian manufacturing sector. The present state of the manufacturing sector underscores the need for firm-level learning and strategic policy actions. This paper utilized data from the Enterprise Survey Panel covering the periods 2007, 2009, and 2014/2015 to investigate firm learning and productivity in the Nigerian manufacturing sector. Case study illustrations were also undertaken to further provide insights into the links between learning variables and the productivity of selected firms in the sector. Data were analyzed using descriptive statistics; dynamic panel model (DPM) via ordinary least squares (OLS) and General Method of Moments (GMM) techniques. The results of the estimation show there is a positive and significant relationship between export participation lagged by one period (t-1) and the current firm performance. A one-period lag of the learning variables, namely: skills and training increased the productivity of firms. The case study illustrations revealed that major learning capabilities include customer feedback; through employees, staff training/seminars/workshops, and supplier feedback. The paper provides evidence to conjecture that the STI mode of learning, which involves formal research and development (R&D) in firms is not deep enough, and that domestic firms have less productivity relative to firms with some proportion of foreign ownership. Also, some of the constraints to learning and productivity are an unstable regulatory environment, poor infrastructure and high cost of doing business. The paper recommends both formal and informal modes/mechanisms of learning are important to ensure improved productivity of manufacturing firms in Nigeria Also, learning opportunities may differ within and across manufacturing subsectors. Industry regulators or agencies should organize to provide a forum for firms and relevant stakeholders to regularly interact on learning experiences to learn from each other and collaborate to address obstacles to productivity.

The Role of Internal Audit in Enhancing Corporate Governance Practices in the Nigerian Manufacturing Sector

Corporate governance is a crucial aspect of any organization, especially in the Nigerian manufacturing sector. Effective corporate governance practices are essential for promoting transparency, accountability, and sustainable business growth. Internal audit plays a significant role in ensuring that these practices are adhered to and maintained. This conceptual paper aims to explore the role of internal audit in enhancing corporate governance practices in the Nigerian manufacturing sector through review of scholarly literature. The article revealed that internal audit plays a vital role in enhancing corporate governance practices in the Nigerian manufacturing sector. The internal audit function provides independent and objective assurance to the board and management that the organization's systems and processes are operating effectively, efficiently, and ethically. The paper also highlighted the challenges faced by internal auditors in Nigeria, including inadequate resources, lack of awareness about the internal audit function, and the perception that internal audit is only focused on financial reporting. The study recommends that the internal audit function should be adequately resourced, and internal auditors should receive continuous professional development training to keep up with emerging trends and best practices in corporate governance. Overall, this study provides valuable insights into the crucial role of internal audit in enhancing corporate governance practices in the Nigerian manufacturing sector. The study's findings can guide organizations in improving their corporate governance practices by leveraging the internal audit function's strengths to enhance transparency, accountability, and sustainable business growth. Keywords: internal audit, corporate governance, Nigerian manufacturing sector, sustainable business growth DOI: 10.7176/RJFA/14-10-04 Publication date: May 31 st 2023

Environmental Disclosure and The Quality of Financial Reports of Listed Nigerian Manufacturing Firms

This study examined the relationship between environmental disclosure and the quality of financial reports in Nigerian manufacturing sector. The specific objectives were to examined the relationship between environmental donations and sponsorship disclosure on the quality of financial reports among manufacturing firms in Nigeria; examined the relationship between environmental restoration disclosure on the quality of financial reports among manufacturing firms in Nigeria, accessed the relationship between environmental waste management disclosure on the quality of financial reports among manufacturing firms in Nigeria and ascertain the relationship between environmental donations and sponsorship disclosure, restoration and waste management disclosure and the quality of financial reports among manufacturing firms in Nigeria. Ex-post facto research design was adopted and a final sample size of 10 manufacturing firms was purposively selected for a period of 10 years. The data were collected through content analysis method. Descriptive and inferential statistics were used to analyzed collated data. Findings revealed that two out of the three components of the environmental accounting information, namely, Environmental Restoration (ER),and Environmental Donations and Sponsorship (EDS) have no significant influence on the quality of financial reports among the manufacturing firms. Thus, the null hypothesis were accepted. The study concluded that the influence of the disclosure of accounting information about environmental restoration, and environmental donations and sponsorship on the quality of financial reports of manufacturing firms in Nigeria were insignificant. It was recommended that Standard setters and policy makers should work with the Ministry of Environment to consider introducing mandatory disclosures which are consistent.

The Impact of Knowledge Management Processes on Innovation Implementation: Nigerian Manufacturing

The Nigerian manufacturing industry significantly influences national economic diversification and growth. However, it faces several challenges, including insufficient infrastructure, talent shortages, and foreign direct investment. The study investigates how KM processes impact innovation in the Nigerian industry. We surveyed 424 manufacturers and found that better KM processes (acquisition, creation, application, and sharing) lead to improved innovation implementation. The results demonstrated that KM processes considerably impacted innovation implementation in the Nigerian manufacturing sector. Knowledge acquisition, creation, application, sharing, and storage all have a favourable effect on innovation implementation ability. The findings emphasise the significance of adequate information flow, investment in research and development, and technological capabilities for promoting innovation. This study shows the link between KM practices and innovation outcomes in the Nigerian industry. This study has implications for improving competitiveness and sustainability. A work environment that prioritizes continuous learning, collaboration, and technology for knowledge management would be beneficial.

Digitalna transformacija i efikasnost preduzeća u proizvodnom sektoru Nigerije

The effects of a digital technologies uptake on firm efficiency in the Nigerian manufacturing sector were examined. The combined application of data envelopment analysis and the Tobit regression methods were employed to analyze the cross-sectional survey data derived from a sample of manufacturing firms. The research results showed that the uptake of digital technologies was still skewed to the low-end appliances/devices, whereas the uptake of the high-end digital technologies required to forge the digital transformation of firms was still low. Manufacturing firms in Nigeria need to make a quick transition to high-end digital technologies in order for them to increase their efficiency and competitiveness in the global marketplace. Challenges to the uptake of digital technologies need to be addressed as well. The training/retraining of personnel need be scaled up so as to build the digital capacity of the sector, bolster efficiency and improve the productivity of operations. The importation of digital devices may be an option in the short run, but local production should be ramped up in the long run.

Autoregressive distributed lag estimation of bank financing and Nigerian manufacturing sector capacity utilization

<abstract> <p>This study examined the short-term and long-term relationship between credit financing by commercial banks and capacity utilization of the manufacturing sector in Nigeria. The study employed both classical Multiple Linear Regression (OLS-MLR) and the autoregressive distributed lag model (ARDL) to analyze data representing the period 1981–2020 relating to sectoral credit finance,labor employment,and capacity utilization from the <xref ref-type="bibr" rid="b6">Central Bank of Nigeria Statistical Bulletin (2020)</xref> and <xref ref-type="bibr" rid="b38">World Bank Development Indicators (2021)</xref>. Further,the two estimation procedures were performed within a classical endogenous Cobb-Douglas production function framework that takes technical change into consideration. The bounds test indicated no long-term relationship between bank financing and average capacity utilization of the manufacturing sector in Nigeria. However,the ARDL results revealed that bank financing exerts a positive but insignificant short-term impact on the average capacity utilization of the manufacturing sector in Nigeria. Consequently,the researchers affirm that credit financing by commercial banks in Nigeria has no significant impact on the capacity utilization of the country's manufacturing sector,in neither the short run nor the long run.</p> </abstract>

The Influence of Tone at the Top on Financial Statement Fraud of Listed Manufacturing Firms in Nigeria

Financial statements prepared by the management remains the umbilical cord that connects the financial health of an enterprise to the various stakeholders who rely on them to take informed economic decision. However, the contemporary global business community has unimaginably been submerged in the recent wave of the shocking death of notable corporate entities sooner after the publication of juicy profits which metamorphosed from the poor and ineffective tone at the top orchestrated by top management in collaboration with the independent external auditors. Most of these corporate collapses were associated with the top management with widely exercised corrupt practices. The inefficient or nonexistence of tone at the top in most of entities contributed to the widespread violations and exploitation of accounting loopholes. These apparent upsurge of recently doctored financial statements frauds have resulted in the impairment of firm’s productivity, operational efficiency, damages reputation for businesses, heavy financial losses, collapse of an entire organization and have severely eroded the stakeholders’ confidence and public trust. The thrust of this study is to establish and develop efficient and formidable tone at the top that will help to ameliorate financial statement fraud rascality in the quoted Nigerian manufacturing sector. Ethical leadership strategy, corporate ethical culture and risk management practices were used as the proxies of tone at the top while improper revenue recognition dimension of the financial statements fraud. The researchers adopted correlational survey design for the study and used primary data via structured questionnaire. The null hypotheses were formulated and tested at 0.05 level of significance and other data were analyzed by Pearson Product Moment Correlation and multiple linear regression model with the aid of Statistical Packages for the Social Sciences version 25. The study found that all the tone at the top proxies; Ethical leadership strategy, corporate ethical culture and risk management practices positively and significantly related to improper revenue recognition of quoted Nigerian manufacturing companies in the period of this study. The study concludes that tone at the top effectively and significantly related with the financial statement fraud. We recommend that the policymakers to prompt manufacturing companies in the country to develop strategies for tone at the top with strong ethical approach where employees will be trained and re-trained on the need always to do what is rightful and needful at every moment in the society and workplace. We also suggest that the parents should give their wards very good upbringing so that they can be useful in society and will be free from all social vices such as fraud.

CAPITAL MARKET AND MANUFACTURING SECTOR OUTPUT IN NIGERIA 1990 TO 2021

The importance of the capital market to sustained growth and development of an economy cannot be overstated. The capital market acts as a catalyst for rapid and sustained manufacturing growth, especially in capitalist economies. However, the role of the capital market in the development of the Nigerian manufacturing sector has remained unaddressed and the effect has not been felt despite several policy tools by the government aimed at improving the manufacturing sector. The paper investigated the effect of capital market on manufacturing sector output in Nigeria from 1990 to 2021. The ARDL-ECM method of analysis was adopted in carrying out the analysis. Findings from the paper revealed that market capitalization has a positive impact on the manufacturing sector's output. The study recommends steps aimed at improving the capital market and all share indexes as both have a positive and significant impact on the manufacturing sector output as well as put in place measures to ensure that share prices are reflective of their real values.

Exploring the CO2 emissions drivers in the Nigerian manufacturing sector through decomposition analysis and the potential of carbon tax (CAT) policy on CO2 mitigation

The CO2 emissions trend and their reduction potential in the Nigerian manufacturing sector from 2010 to 2020 were studied. The Logarithmic Mean Divisia Index was applied to decompose the change in CO2 emissions into pre-set factors: carbon intensity effects, firm energy intensity effects, cost structure effects, asset-turnover effect, asset-to-equity effect, equity-funded production effect and productive capacity utilization. The results show that the change in emissions increased by 1668times {10}^{12} GJ between 2010 and 2020. Energy intensity and equity-funded production were the leading drivers of increased emissions, while productive capacity utilization reduced emissions. The CO2 emissions increased throughout the study, except for a few periods. Without a carbon tax policy, the results show that firm-level drivers increased CO2 emissions in the business-as-usual scenario. However, under the 5% carbon tax (CAT) policy scenario on energy consumption, there was a reduction in CO2 emissions between 2010 and 2020. Furthermore, a CAT policy of 5% on energy consumption reduced CO2 emissions by 22%. A further implication of CAT policy, given its interaction with firm-level drivers, resulted in lowering CO2 emissions in the interactional scenario. The findings indicate productive capacity utilization, equity-funded production, and CAT impacted CO2 emissions variation.

Mediating Effect of Work Motivation on Green Human Resource Management Practices and Employees’ Behavioural Outcomes

Green human resource management practices have practically produced positive results for the environment. This arises as many organisational goals have been required to prioritise environmental problems and organisational sustainability due to emerging global environmental concerns. This does not suggest that the organisation should be painted green, but rather that the initiatives adopted by organisations in a specific sector are environmentally conscious of achieving required behavioural dispositions. But this may not be achieved without consistent work motivation. Hence, this research investigated the mediating effects of work motivation on Green HRM and employees’ behavioural outcomes in Nigeria's manufacturing industry. The Stakeholders’ theory was adopted for this study and it assumes that stakeholders have the power to persuade organisations to adopt environmental practices that result in better environmental outcomes. A descriptive survey research design was adopted to explain the mediating effect of work motivation on Green HRM and employees’ behavioural outcomes. An online questionnaire was employed and distributed to the selected manufacturing firms in Nigeria. This study focused on five (5) different manufacturing firms selected based on their performance, reputation, overall assets and ranking. The data for the study were analysed and presented using SPSS and SEM-PLS (Structural equation method). The findings indicated that motivation, to a great extent, mediates green HRM and employees’ behavioural outcomes. Additionally, the findings made it possible for Nigerian manufacturing companies to prioritize green HRM methods in order to boost employee motivation and reinforced behaviour. Based on the findings, it was proposed that managers in the sampled Nigerian manufacturing sector make an effort to give employees' participation in green activities to measure and evaluate organisational performance. Also, while embracing green HRM practices, the management of the Nigerian manufacturing sector should inspire their members of staff.

Exploring Green Human Resource Adoption and Corporate Sustainability in Nigerian Manufacturing Industry

Gaining a sustainable environment in the manufacturing sector is dependent upon attracting top talent, providing extensive training, and embedding environmental consciousness throughout the company’s culture. Numerous cases of environmental contamination in the Nigerian manufacturing sector have led to serious health problems, confrontations with local residents, employee disengagement, decreased assurance, and organizational discontent. This study investigated green human resource management (GHRM) and corporate sustainability, focusing on manufacturing companies in Lagos State. Social identity theory was adopted for this research. The methodology used was quantitative research which made use of a questionnaire, and data were collected from 336 employees of various industrial enterprises in Lagos State, Nigeria. The findings of this research showed a significant effect between the antecedents of GHRM and corporate sustainability in the manufacturing industry. The study utilized regression analysis and demonstrated that organizations gain advantages by applying GHRM. Employees exposed to greening abilities and training reduce waste and reuse materials, enhance the firm’s image, attract and retain green customers, and reduce adverse environmental effects to better financial performance. This accomplishment benefits the company and allows employees to develop their own environmentally conscious orientation and projects.

Nigerian Manufacturing Sector in the Era of Globalisation: Evidence from an Error Correction Model

Purpose: Globalization has been adjudged to be an exploitative instrument used by the Western world to advance their economy at the expense of the developing countries. In view of this, this study was developed to examine the impact of globalisation on the Nigerian manufacturing sector. Method: The study adopted the Autoregressive Distributed Lag (ARDL) and Error Correction Model (ECM) to estimate and analyse the long and short-run impacts of globalisation on manufacturing value added in Nigeria using data collected from KOF Swiss Economic Institute, and World Bank Development Indicators (WDI), covering the period from 1981 to 2020. Findings: The estimated model established that globalisation has a positive connection with manufacturing value added in Nigeria both in the short and long-run, though not statistically significant. Based on the t-statistics of the individual variables, the study came to the conclusion that although globalisation had impacted more positively on the Nigerian economy, there were still rooms for improvement, especially as regards infrastructural development, which shows a negative connection with manufacturing value added. Originality: The study adds to the existing literature on the globalization-growth nexus by looking at the manufacturing sector of the economy, an aspect which most researchers have been neglecting.

Impact of macroeconomic variables on the Nigerian manufacturing sector

Impact of macroeconomic variables on the Nigerian manufacturing sector

Sources of Instability in Nigeria’s Manufacturing Performance: 1981–2018

The article investigates factors that may be responsible for observed instability in Nigeria’s manufacturing sector performance. Based on growing concerns regarding early deindustrialisation observed for many developing countries, the study examines how a menu of fiscal and monetary policies can be applied to revitalise the Nigerian manufacturing sector. Consequently, we construct an index of manufacturing sector instability and examine how it responds to a mixture of fiscal and monetary policy variables. We use annual time series data from 1981–2018 and apply the ARDL bounds test technique. Our findings show that budget deficits induce instability in the performance of the Nigerian manufacturing sector, while government infrastructural investments stabilise it. The monetary policy instruments were found to have inconsistent short-run and long-run influences but mostly conform with theory. JEL Codes: F63, L20, L25, L60, O10, O14

Manufacturing Sector and Globalization Nexus in Nigeria: An Empirical Study

Globalization is meant to efficiently allocate resources around the world to enable economic growth. Hence, the study took as its objective to examine the relationship between globalization and the Nigerian manufacturing sector. To achieve this, the study utilized annual time series data from 1986 to 2019. The analytical method followed the Paseran, Shin, and Smith (2001) ARDL approach. Bound cointegration test revealed that stable long run relationship exists among the variables. The result shows that overall globalization and economic globalization had negative and significant impact on manufacturing output growth in the long run. However, in the short run only economic globalization has a positive significant impact on manufacturing in Nigeria. Based on these findings, the study, therefore recommended that, the government should adopt proactive trade policies to protect and give competitive advantage to the domestic manufacturers.