Management Problems Of Manufacturing Industries In Nigeria

Project and Seminar material for Public Administration

Management Problems Of Manufacturing Industries In Nigeria


It is a fact that there are some factors that are responsible for the poor performance of the manufacturing industry in Nigeria. The manufacturing industry play a vital role in the Nigerian economy and also in the lines of the people.
The manufacturing industry is like an organization that is motivated by a number of tractors to utilize input like raw-materials, land and man-power in the production of physical or tangible products for their consumer satisfaction. The primary objective of carryout this study, is to critically examine the factors responsible for the poor performance of manufacturing industry in Nigeria. The various functions, achievements, etc. contributes to individuals as well as the sectors of the economy.

This study would examine the evolution of manufacturing industries from inception to date, to lay more emphasis on the importance and gains of the manufacturing industries in the rural area and take a look at the problems and suggestions to solve these problems.

This project is also needed, in order to see how the manufacturing industry can be of assistance t the rural sectors and to the country of large.

It is likewise needed to serve as a prerequisite for the establishment of more manufacture industries. This study can be used to study the extent of program of the federal government and the manufacturing industries have made in their efforts to see equal distribution of manufacture industries in Nigeria.

Chapter One


1.1 Background of the Study

Since the attainment of independence by west Africa countries, successive governments have taken serious interest in industrialization. Industrialization can be defined on the conversion of an agrarian and commercial society to a more comprehensive machinery oriented. Social โ€“ economic system. This concept cannot be treated, without remembering the industrial revolution of the Western Europe of the 15th and 16th century. The new Encyclopedia 4th edition (1975) described the industrial revolution as a term usually applied to the socio-economic changes that marked transition from a stable agricultural and commercial society to a name machinery oriented system.
Agriculture which has been the major occupation of more than 80% working population of Nigeria, began to suffer a diminishing role, claiming a lots of population in manpower. Another related lesion form the history of planned industrialization of the socialist countries especially soviet Union whose economy was transformed from a very short period predominating of agricultures, change rapidly to an industrialized society.

A further element in the appeal for industrialization is based on the fact that the economic quart for increase in a wide scope of industrialization both import-substitution and export substitution. The unequal distribution of gains from trade between developed and developing countries is a related justification for the policy of industrialization.
All there explains the reason why government should encourage industrialization, which is generally regarded as the way to rapid economic development, higher living โ€“ standards for people. All manufacturing industries are encourage to promote the rapid. Growth of resources and effective utilization of existing resources available. Such countries like Japan, U.S.A are all industrialized. Countries but depend on West African Countries for itโ€ Agricultural products which is most needed.

Arising form the fact above, after the second world war, the colonial government began to introduce a number of legislation, which was aimed at stimulating the establishment of modern industries. They began to tashon out industrialization which seems to be the key to economic independence and the vital tool to eliminate poverty and unemployment. Other incentives of industrialization include capital depreciation import duties, custom duties, draw back regulation and the establishment of industrial estates in the countries.

๏ƒ˜ Government also gave guarantee for the repatriation of products and dividends. In addition a number of development board were set up to finance development with the approach to expanding the market strategy for market dominance which was under โ€“ increasing threat from new firms coming into the country. It could be seen from the history given above, that industrialization is a key to economic independence. The pressing need for industrialization in West Africa is also brought out by relatively small โ€“ use many things which could be much and quickly close through mechanical process.

In summary, at could be vividly seen that the manufacturing industries in Nigeria and West African resources and so on. This study intends to examine problems and proffer solutions and recommendations.

1.2 Statement of Problem

  1. Poor infrastructural development
  2. High cost of obtaining invisible funds
  3. High cost of acquiring industrial machine and equipment
  4. Inadequate government support for industrialization drive of small and medium entrepreneurs.
  5. Incessant demand of Nigerians for imported products

1.3 Objective of the Study

All research study is aimed at achieving certain objectives. The objectives of this study include the following.

  1. To examine the state of infrastructural development in the country with reference to Nigerian Breweries Plc.
  2. To examine the alternative sources of funds and associating costs of manufacturing industries with a focus on Nigerian Breweries plc.
  3. To examine the causes of increasing demand for imported goods by Nigerians.
  4. To recommend how the problems facilitating against Nigeriaโ€™s guest for industrialization can be mitigated.

1.4 Scope of the Study

This study is designed to cover as much as possible, all aspects of poor performance of the manufacturing industrial with emphasis on the problems and solutions to its poor performance and also the effect of the production aspects of the industries.

1.5 Research Question

To guide this project work, the following โ€“ research questions were formulated to ensure clarify.

  1. What are the required infrastructure necessary for industrial growth and development in Nigeria?
  2. What is the state of these infrastructures in Nigeria?
  3. What are the alternative sources of funds valuable to finance industrial โ€“ projects?
  4. What is the cost of the investible funds?
  5. What are the needed industrial machinery and equipment?
  6. What is the cost of acquiring these machinery and equipment?
  7. What is the level of support by the government
  8. Why the increasing penchant for imported good by Nigerians?

1.6 Formulation of Hypothesis

In order to determine the management problem, of manufacturing industries in Nigeria it is necessary to test the following hypothesis

  1. Ho: Poor infrastructural development does not impact on industrial development of Nigeria.
    Hi: Poor infrastructural development impact positively on industrial development in Nigeria.
  2. Ho: High cost of capital does not make investible funds accessible.
  3. Hi: High cost of capital males investable funds accessible
    Hi: Government does not give adequate support for small and medium scale enterprises (SMEis)

1.7 Significant of the Study

  1. It is hope that when two study is completed, it will assist stake holders in the manufacturing industries in the management of their business.
  2. It is also hoped that this study will provide a base for other researcher who โ€“ provide a base for other researcher who โ€“ might want to conduct further researcher on the area of management problems, of manufacturing industries.
  3. It is hoped that the recommendations of this study would be of empirical โ€“ relevance to management, so as to adopt them to suit their objectives.

1.8 Definition of Terms

The following terms are defined in the content in which they are used in this research work.

(1) Industrialization:

This is the process of been industrialized

(2) manufacturing:

The activity of making things big an industrial process.

(3) Manufacturing:

The activity of making things by an industrial process of developing

(4) Performance:

The ability to operate efficiently

(5) Problem:

Things that are difficult to deal with

(6) Unemployment:

The act of not been employed.

(7) Instability:

Unstable atmosphere

(8) Infrastructure:

Basic needs

(9) Revolution:

An attempt to change a situation or government

(10) Respondent(s):

A person or persons who answer questions.

Chapter Five

Summary of Findings, Conclusion and Recommendation

5.1 Summary of Findings

The main purpose of this study was to find out the contribution of Manufacturing sector in Economic growth and development using Nigerian Breweries plc as a case study and also if possible make recommendations how Manufacturing sector can be properly integrated into the economic development in the country.

From the research study, the researcher found out that government objective in promoting development of small-scale enterprises survive and flourish as units of efficient economic activities in the process of industrialization. In addition to benign sources of supply of potential entrepreneurs, Manufacturing sector discharge other roles of job creation, promotion of self reliance development industrial dispersal etc.

Federal and state government desire to proliferate successful small-scale enterprises is not as successful as one would have desire because education of the small-scale industrialists was neither given its due recognition nor was appropriate provision made for it. A second chance has been appropriate offered to correct this by mobilizing the unemployed university graduates and others who are interested to form a new crop of small-scale industrialists.
Minimizing under-capitalization and to enhance managerial and technical expertise as well as to create a favourable atmosphere for mode entrepreneurship. Specifically, it was shown that there is need for leading-financial institutions and relevant government agencies to have adequate cadre of professionals among their staff to prepare project profiles and feasibility studies for small industrialists. Their responsibilities should include analysis and testing venture ideas for feasibility and viability. The enormous infrastructure problems of the small-scale enterprises are in the domain of government to are in the domain of government to ameliorate while good intension are not lacking from government it is the failure to translate these intensions into concrete achievement that has perpetuated this monstrous problems.

Supervision of small-scale projects after loans have been obtained has been emphasized. Responsibility of lending financial institution does not end with the sanction and disbursement of loans. There should be intensive follow-up and supervision of the project implementation to ensure that the found advanced has been utilized for the purpose for which the implementation is completed on schedule. It is advocated that a greater part of the cost of supervision be borne by government. Small-scale industries may need special assistance in the procurement of needed foreign exchange because of the financial cost and their well established firms for inadequate available foreign exchange.
Finally, it must be borne in mind that there is no simple method of defining the best course of action for achieving the countryโ€™s industrialization. Too much emphasis on small-scale enterprises would result in the country being regulated to a second class technological power. On the other hand, over emphasis on industrialization based on aggressive acquisition of modern high technology could lead to greater foreign dependence than is considered acceptable. There is need therefore for a planned series of trade-offs based on the knowledge of what is desired and can be achieved.

5.2 Conclusion

The preparedness of advanced countries shares in the locally operating transition, deriving implicitly or explicitly from facts so far adduced. To put it succinctly here, Nigeria would be made to know and strive, even in the absence of physical violence through a mere concentrated strategy of western industrial nations in the main of cutting off Nigeria from its usual foreign sources of loans, of acquisition of assembly and spare parts and other industrial inputs including technical and managerial expertise and counselling on the one side and from more.

5.3 Recommendations

In actual fact, one is left with no other thing than to wonder why sartorial allocations to priory areas like Agriculture nice results. It might mean that such substantial amount may always be invested on capital equipment by such sectors like one should know that capital equipment does not yield relevant utility before exert cost incurred vis-ร -vis depreciation and replacement. Thus the researcher recommends the following components so as to achieve credit self-reliance through small-scale enterprises.

Credit: The availability of credit to small firms can often be increased by raising interest rate ceilings and permitting a spread that makes it worthwhile for banks to land to small-scale enterprises or by increasing the number and range of intermediaries allocating foreign exchange for investment.

Imported Raw Materials: It is not common, for instance, for middle man than resell their supplies at black market prices to small-scale enterprises that desperately need imported inputs to survive in business but lack influence over the authorities concern.

Technology and Equipments: By subsidizing imported machinery would stimulate domestic engineering industries and machine shops which are potentially important in helping small-scale enterprises improve their equipment.

Markets: Often barriers to the trading companies which market the products of small-scale enterprises exist and should be removed export market can be tapped more fully by ensuring that small-scale enterprises benefit from import duty rebates or exemptions on imported materials and components can also that are incorporated into exported products. Government can also directly enlarge the market for small-scale enterprises by subcontracting maintenance and repair services that public agencies might otherwise perform themselves.

Lastly, the best environment for small-scale enterprises is a relatively free market that provides equal incentives and opportunity for all enterprises. Development programmed like schools, loans to unemployed graduates (mass mobilization for economic recovery, self-reliance and social justice) which focused specifically on small-scale enterprises can also be useful, provided the reinforcement and supplementary are in the private sector initiatives rather than replacing them, but the primary need in most countries is simple to remove the biases and obstacle to small-scale enterprises that are existing in creatively and resultantly.

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