Assessing The Contribution Of Industrial Training Fund (ITF) In Manpower Development In Nigeria

Project and Seminar Material for Business Administration and Management BAM

Assessing The Contribution Of Industrial Training Fund (ITF) In Manpower Development In Nigeria


This project undertakes a comparative study of assessing the contribution of industrial training fund n manpower development of Nigeria with references to ITF Emene. The researcher made use of a very developed questionnaire and distributed it by himself. The population for the study consists of staff draw from vital department of ITF Emene. The departments are: Top management, Middle management, Lower management. The entire population of this study was 200 staff and 133 staff responded to the request of the researcher. The source of gathering data further study was through primary and secondary data. The primary source consist of oral interview while the secondary data consist of information gotten from contributing companies, ITF seminar paper presented at conference meeting, library and test books. Data collected were recorded and grouped in tables for easy references. The researchers findings of the study had it that the major criticisms of the fund by the contributing companies were in the area of reimbursement, training time and scope of training. From the findings, the researcher recommended that ITF should increase the reimbursement, rate and period of training time and should monitor the performance of training.

Chapter One


1.1 Background of the Study

A few years ago the concept of training and employee development was very equally understood in most developing countries. Today, thing are very dynamic that many developing countries are even developed ones have come to appreciate the benefits of employee development and training

Yesufu (1969) argued that the basic problem of developing countries is not lack of natural resources but the under development their human resources. In a similar perspective the Ashby report of 1959 showed that manpower resources in the third would countries is under developed and following its recommendation, the national manpower board was established in 1962.

As a follow-up the manpower board in 1963 undertook comprehensive manpower survey which drew the attention of government to the following

  1. The low quantity management in all level as one of the major problems of economic development.
  2. The need for effective co-ordination to avoid unnecessary duplication of effect in manpower training.
  3. The need to ensure that training programmes effect the frequency, level and used of the economy.

Centre for management education and training Mimeograph (1973)

In 1969, the international labour organization also re-emphasized this in adequacy of manpower development programmes in Nigeria for her to carryout her economic development plans In addition the civil war of 1967-1970 caused a structural dysfunction of the economy So there is the need to rehabilitate the tremendous economic social and industrial set back of the civil war both in the private and public sector of the economy Yesufu (1963)stated that these economic rehabilitation require developed technical, vocational and professional manpower training.

The second national development plan (1970) also limited that there is lack of employment of Nigeria in high level position in our industries and it identified the following factors as hindering their recruitment to high level position.

  1. Inadequate Management training.
  2. Poor quality of subordinate employer.
  3. Inadequate of educational and professional requirement.
  4. Inadequate experience.

Inspite of these poor quality and quantity of skill manpower (Yesufu:1969), reported that employers have the need to train their workers for high productivity and efficiency of their work.

Accordingly, the federal government created the industrial training fund (ITF) in 8th October 1971 by decree No 47. Its main objective according to Dikko (1978) is to promote and encourage the acquisition skills in industries with a view of generating a pool of ingenious training manpower sufficient to meet the development needs of economy. The decree also changed the governing council of the body to utilized all contribution made to it by employers of labour and subvention from government to encourage and promote the acquisition of skill in industries and commerce.

To these effects, the industrial training fund became one of the bodies changed with the task of articulating the training of industrial manpower of the company. In this respect, it will be of interest to investigate the impact of its training programmes in manpower development in the country.

1.2 Statement of Problem

As indicated before that, the setting the Industrial Training fund has the central objective of the promoting and encouraging the acquisition of skill in industry and commerce. In essence, industrial training is expected to help in providing high quality personnel to manpower industry and commerce. So far, we have no way of knowing what has been achieved. Industrial training fund and manpower development in Nigeria (1989) in its bulletin, claimed to have done a lot to have meet the manpower need of our economy but complain cooperation employers of labour who need the training remain a matter of speculation.

On the other hand, employers of labour criticized the fund adversely. They claimed that have not benefited from industrial training fund. They argued that, the courses approved by ITF are general and met specific to the individual and employers needs.

As of now, we have no hard facts on the picture of things. Is the industrial training fund helpful? Is it not? What is the quality of industrial training fund programmes? This study is intended to contribute towards answering these questions.

1.3 Purpose of the Study

The study would investigate the activities of industrial training fund with a view of knowing the roles of its training programmes, in manpower development in the country. It would if there is justification for the criticisms being leveled on the industrial training fund by employer of labour which have adversely affected their cooperation with industrial training fund. In view of the above, the purpose of the study are:

  1. To find out whether industrial training fund needs of contributing companies adequately. \
  2. To identify the kinds of training programmes offered by industrial training fund to the employers labour.
  3. To identify the problem facing the organization.
  4. To find out how industrial training fund affect the work performance of participant.
  5. To find out how trainees of industrial training fund adjust their work after training.

1.4 Scope of the Study

The study covers industrial training fund as an institution established to organize industrial training in Nigeria. Industrial training fund has its headquarters in Jos with 22 area offices all over the federation, although efforts are geared to establishing area offices in each of the states in Nigeria. Comprehensive information about the policy of the institution would be gathered from the headquarters. Since the area office run a similar programmes and the same objectives as directed by Jos headquarters, a sample study of Emene area office would be made employers of labour who contribute to industrial training fund in the Emene area office would be sample.

1.5 Research Questions

  1. Are the training programmes of the industrial training funds adequate for manpower requirements?
  2. Is there improvement in the job performance of employees after the industrial training?
  3. What are the roles of the industrial training fund in industrial development?
  4. Has industrial training fund increased the manpower needs of the nation?

1.6 Research Hypothesis

Hypothesis 1
  • Null hypothesis (Ho): The training programmes of industrial training fund are not adequate for the industrial training requirements of the contributing companies.
  • Alternative hypothesis (H1): The training programmes of industrial training fund are adequate for industrial training requirement of the contributing companies.
Hypothesis 2
  • Null Hypothesis (HO): There is no significant improvement in job performance of employees after training session with industrial training fund.
  • Alternative Hypothesis (H1): There is significant improvement in job performance of employees after training session with industrial training fund.

1.7 Significant of the Study

The important of this present study can easily be seen. Principally, the out come of the study will be of immense important to employers to know the quality of the training programmes offered by industrial training fund.

It will be of important to government who established the scheme since 1971, in knowing how the fund has been fairing and know where to make amends.

It will also enable the non –members of industrial training. Fund to know the skill content of the fund and decide whether to use it or not.

In the same manners, it will put interested parties in a better position to ascertain whether the fund is alive to the objective (in raising skilled manpower for industry and commerce) in which it was set up.

Finally, the analysis may as a catalyst in finding remedies to the operational problem of the fund.

1.8 Scope and Limitation of the Study

The scope of the study covers an assessment of the contribution of industrial training funds in manpower development in Nigeria, in the cause of the study, there were some factors which limited the scope of the study

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities

1.9 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain the contribution of industrial training funds in manpower development.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of industrial training funds in manpower development in Nigeria.

5.2 Summary

From the findings, it will be observed that the training programmes of ITF is very qualitative. This is buttressed by the ability of the trainer to improve in their job performance after training session with ITF. The lack of interest shown by some contributing companies do not mean that they dislike the industrial training skill of ITF. The factual situation is that every organization has its own objectives. Some enterprises have profit and survival as their main objective, while others might be expansion. 92 They therefore tend to work towards their achievement. It is often posited that a well trained employees is capable of performing better than untrained employees of equal physical ability. In this situation, it requires total commitment from both the government, the companies, the firm and the public in general so as to generate the necessary awareness in our companies, for the needed skilled manpower. The reluctance of employers to invest on manpower training and subsequent lack of trainers in the firm has caused the lack of skilled manpower in the country. From all ramifications, it is pertinent to mention that the skill content of ITF training programmes are very qualitative and useful to participants, and genuine partners in progress, especially professional and those interested in manpower training and development are enjoined to support the ITF as the nation cannot afford to do without skills and trained indigenous manpower for her national development.

5.3 Conclusion

Based on the results of this study, the following conclusions were made:- The objectives of industrial training fund as stated in its enabling decree have been achieved to some reasonable extent. The training personnel of ITF possess the required skills for training. Some of the training facilities, tools and equipment in ITF are adequate and functional. While some of them are either damaged, ill-maintained or obsolete. The ITF varies training methods in their training programmes to ensure effectiveness. The ITF training programmes are oriented toward the wholistic development of man’s three domains; namely; the cognitive (knowledge), the affective (attitude) and the psychomotor (practical skills). This implies that graduates of ITF training programmes possess to some extent, the required practical skills, theoretical knowledge and affective work skills. The study also identified some limitations in the effectiveness of ITF training programmes. Furthermore, desirable strategies for improving the effectiveness of ITF training programmes have been elicited. Conclusively, the ITF has been reasonably effective in human resource development in Nigeria. Its deficiency in the area of facilities, tools and equipment should be remedied by the government in order to make ITF more effective.

5.4 Recommendations

We have x-rayed the contributions of ITFs training in manpower development. The nature and short-coming of the funds training programmes were identified and conclusion drawn. In order to keep the wheel of progress of the funds going, we recommend the following policy formation that: –

The training programmes of ITF should be wide enough to cover the specific need of the contributing companies.
The duration of training programmes periods offered by the fund should be extended so that specific training needs of the contributing companies may be covered.

As the industrial training programmes are found to be qualitative, organizations including those with less than 133 employees, in their payroll should be encouraged to solicit for industrial training programmes. In the long run National economy is bound to benefit if all employee improve their job performance.

Adequate publicity of ITF training programmes should be given so that companies will now when courses are scheduled.

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