University of Nigeria Study of the...University of Nigeria Research Publications ... Assistant Chief...

University of Nigeria Research Publications

ADAH, G.B.E.

Aut

hor

PG/MBA/86/4373

Title

Investigative Study of the Problems of Industrial Development of Benue State

Facu

lty

Business Administration

Dep

artm

ent

Management

Dat

e

March 1989

Sign

atur

e

IWESTIGATIVE STUDY OF THE PROBLEMS OF INDUSTRIAL DEVELOFI'ENT OF

BENWE STATE

ADAH* C. Be E o

REG. NO. ~ ~ / ~ ~ ~ / 8 6 / 4 3 7 3

PROJECT REPORT

BUBMITTED I N PARTIAL FULFILMENT

OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS

ADMINISTRATION (M. B.A 0 ) I N MANAGEMENT

DEPARTMENT OF MANAGEMENT

FACULTY OF BUSINESS ADMINISTRATION

UNIVERSITY OF NIGERIA

ENUGU CAMPUS

CERTIFICATION

Gabriel Bernard Eje kdah, a postgraduate s tudent i n

the Department of Management and with R e g i s t r a t i o n

Number P~/MBA/86/4373 has s a t i s f a c t o r i l y completed

t h e requirements of Master of Business Administration

i n Management. The work embodied i n t h i s p r o j e c t r e p o r t

i s o r i g i n a l and has not been submitted i n p a r t or f u l l

f o r any o ther diploma or degree of t h i s o r any o ther

University.

&ih.m4$f > I

C E P.C. U AM SUPERVISOR

DEDICATION

iii

The study was c a r r i e d out a s one of the requirements

f o r the award of a Master of Busniess Administration Degree

i n F'imagement. The course, Research Methodology designed

t o groom t h e s tuden t s f o r chal lenges of p r a c t i c a l

business management has been q u i t e h e l p f u l i n t h e production

of t h i s Report.

With t h e experience gained from t h i s Study t h e

researcher can face t h e r e a l i t i e s of business p r a c t i c e where

he w i l l be expected t o c o l l e c t f a c t s , analyse them and

i n t e r p r e t e information therefrom f o r t h e s o l u t i o n of

business problems. The researcher i s g r a t e f u l t o t h e Depart-

ment of Management, Universi ty of Nigeria , Enugu Campus f o r

providing t h e opportuni ty f o r t h e Study.

I am p a r t i c u l a r l y g r a t e f u l t o my Supervisor,

Chief P.C. Unamka f o r d e l i g e n t l y guiding and advis ing me

throughout t h e course of t h i s p ro jec t . I wish t o express

my s i n c e r e g r a t i t u d e t o D r . E.K. Ikeagwu, Lecturer Research

Methodology.

I a l s o o f f e r my g r a t e f u l thanks t o t h e s t a f f of t h e

Library of t h e Universi ty of L ige r i a , Enugu Campus f o r

t h e i r a s s i s t ance . To a l l those who i n one way or t h e o the r

cont r ibuted t o t h e success of t h e P ro jec t e s p e c i a l l y

M r . J . O . Ochigbo of Benue Polytechnic, Ugbokolo,

Mr. Ediga Otowo Chief Indus t r i '3 l Of f i ce r , Minis try of

Commerce and Indus t ry Makurdi, M r . John ~ a i ~ a n ~ e ,

Ass i s t an t Chief Planning Of f i ce r , Minis try of Finance and

Economic Planning Makurdi and Mr. Aaron Ako, Managing

Direc tor Benue Investment Company Limited, I am r e a l l y

g r s t e f u l .

Last and no t t h e l e a s t I want t o acknowledge t h e

e f f o r t of M r . F e l i x Oche Adama who typed t h e manuscript

successfu l ly . While acknowledging t h e he lp o f a l l t h e s e persons,

I personal ly accept r e s p o n s i b i l i t y f o r any e r r o r s o r

shortcomings t h a t may be i n t h i s work.

GABRIEL BERNARD EJE ADAH

TARLE OF CONTENTS

CERTIFICATION

DEDICATION

liCKhOWLEDGEMENTS

LIST QF TABLES

CHilFTER I : 1.0 In t roduct ion

1 .I Statement of problem

1.2 Object ives of t h e sturn

1.3 Hypotheses

1.4 s ign i f i cance of t h e Study

1.5 Scope of t h e Study

1.6 Methodology

1.7 Defin i t ion of Terms

CNiFTER 2: REVIEW OF RELATED LITERLiTURE

2.0 In t roduct ion

2 ,I Nigerian I n d u s t r i a l P o l i c i e s

2.1 .I Phases of h ige r i an I n d u s t r i a l Polc ies

2.1.2 Benue S t a t e I n d u s t r i a l Pol icy

2.2 Const r ian ts t o I n d u s t r i a l Development i n Nigeria

2.2.1 I n f r a s t r u c t u r e

2.2.2 Shortage of Investment Capi ta l

2.2.3 Lack of Indigenous I n d u s t r i a l Entrepreneurship and Management

2.2.4 Shortage of I n d u s t r i a l Manpower .

PAGE - 1

ii

i i i - i v

v i i i

i x

1

3 6

7

8

9

'lo

11

CHAFTFR 4:

CHAFTER 5:

2.2.5 Leadersh ip 30

2.2.C Land Tenure 32

2.2.7 P o l i t i c s of I n d u s t r i a l Loca t ions 33

2.2.8 Slow Impitementation of Government I n d u s t r i a l P o l i c i e s and Programmes 35

2.2.9 P o l i t i c a l I n s t a b i l i t y 35

2.2.10 Raw M a t e r i a l s , P l a n t , Machinery and Equipment

2.3 I n d u s t r i a l i z a t i o n and Technology

2.4 S t r u c t u r a l Adjustment Programme and I n d u s t r i a l i z a t i o n

2.5 I n d u s t r i a l i z a t i o n and Environment

2.6 The S t r a t e g y of I n d u s t r i a l Development

2.7 I n d u s t r i a l i z a t i o n and F?.onomic Development

2.8 The Role of Government i n I n d u s t r i a l Development.

RESEARCH METHODOLOCY

3 . I n t r o d u c t i o n

3 .'I u u e s t i o n n a i r s Design

3.2 P r e t e s t i n g of Q u e s t i o n n a i r e s

3.3 Determinat ion of Sample S i z e

3.4 Admin is t ra t ion of Gues t i onna i r e s

3. 5 Problems Encountered

PRESENTATION AND ANALYSIS OF DATA

5.1 Summary of F ind ings

vii

5.2 Test o f Hypotheses

5.3 Recommendations

5.4 Conclusion

5.5 Areas of Further Research

APPENDICES

Appendix i

Appendix ii

Appendix iii

Appendix iv

REFERENCES

BIBLIOGRAPHY

LIST OF TABLES

TABLE - Name and nature of Respondent Organizations

Foundation for Industrialization in Benue State

Industries Pre-Benue state Era

Number of medium and large scale Industries in Benue State.

Location of Federal Government-owned industries in the States

Factors affecting industrial development of Renue State

Ranking of Militating Factors

Level of Development of Infrastructural Facilities

Ways Organizations contribute to Industrial Development

4.10 Types of Loans granted to Industrialists 4.11 Whether Benue State Government has

Industrial Policy

4.12 Whether Incentive offered are attractive

4.13 Contributions of various organizations

4.14 Ownership of Manufacturing Industries 4.15 Sources of Initial Capital Outlay 4.16 Effects of Structural Adjustment Prograrnme(~~P) 82

ABSTRACT

This s tudy s e t s out t o i n v e s t i g a t e t h e problems

of i n d u s t r i a l development of Benue S t a t e which came i n t o

being i n Apr i l , 1376 as a r e s u l t of t h e nineteen S ta te -

S t ruc tu re .

The problem i s t o investage t h e f a c t o r s m i l i t a t i n g

a g z i n s t i n d u s t r i a l development of t h e Benue s ince t h e

a v i l a b i l i t y of i n d u s t r i a l raw mate r i a l s s k i l l e d labour

and generous incen t ives being of fered by Benue S t a t e

Government seemingly f a i l e d t o a t t r a c k inves to r s t o

The main ob jec t ives of t h e Study a r e t o a s c e r t a i n

t h e f a c t o r s respons ib le f o r t h e i n d u s t r i a l under-develop-

ment of t h e S t a t e , and which of t h e f a c t o r s a r e s i g n i f i c a n t ,

t o eva lua te t h e con t r ibu t ions of t h e S t a t e Government,

t h e Federal Government and t h e o r g a ~ i s e d p r i v a t e s e c t c r

i n i n d u s t r i a l development of t h e S t a t e .

The Study i s s i g n i f i c a n t i n t h e following ways:

( i ) T3 draw t h e a t t e n t i o n of t h e S t a t e poliay

makers and economic planners t o t h e f a c t o r s t h a t

a f f e c t t h e i n d u s t r i a l development of t h e S t a t e .

( i i ) To emphasise t h e need f o r t h e c i t i z e n s t o form

j o i n t ventures .

( i i i ) The usefulness of t h e Study t o a l l those

i n t e r e s t e d i n i n d u s t r i a l development of t h e S ta te .

The d i s c u ~ ~ i : . n is cent red around t h e problems

of e s t a b l i s h i n g large-scale and medium-scale i n d u s t r i e s

i n t h e S t a t e .

The s tudy is undertaken on t h e bases of f i v e

hypotheses b u i l t around t h e f a c t o r s suspected t o be

respons ib le f o r i n d u s t r i a l underdevelopment of t h e S t a t e ,

Dca t s . f o r the Study a r e c o l l e c t e d through t h e use of

ques t ionnai res administered personal ly by t h e researcher .

On t h e b a s i s of t h e a n a l y s i s of t h e data c o l l e c t e d

major f ind ings a r e i d e n t i f i e d . Aris ing from these f ind ings

a number of recommendations a r e made f o r t h e a t t e n t i o n

of t h e S t a t e Government, t h e Federal Government and t h e

organised p r i v a t e s e c t o r .

The Pro jec t Report concludes by urging t h e a c t o r s

i n i n d u s t r i a l development sceyie of t h e S t a t e t o gear t h e

development towards manufacturing and processing of

primary commodities s ince thc S t a t e i s r i c h l y endowed with

mineral and n a t u r a l resource:., .

CHAPTER GNE

1.0 INTRODUCTION

For one t o apprec ia te t h e problems of i n d u s t r i a l

development of Renue S t a t e of Nigeria , one needs t o

know i t s h i s t o t i c a l background.

The ~ i c h a r d s Cons t i tu t ion of 1946 introduced i n

-I947 divided Nigeria f o r adminis t ra t ive convenience

i n t o t h r e e regions: t h e North, t h e East and t h e West,

whose boundaries were confirmed i n 1954.' The four th

region, t h e Mid-\vest was crea ted out of t h e Western

Region i n August, 1963.

The component p a r t s of t h e e x i s i t i n g Benue S t a t e

w e r e p a r t s of t h e defunct horthern Nigeria between 1954

and 1967 when twelve s t a t e s were carved out of t h e four

Regions by t h e Gowon Administration.

The e f f o r t s of t h e then Northen Regional Government

t o i n d u s t r i a l i z e t h e Region were channelled through t h e

N0rther.n Nigeria Development Corporation and one of i t s

wholly-owned s u b s i d i a r i e s , t%e NortrhernNigheria Investments

Limited now chr i s t ened Eew Kigeria Development Corporation

and New Nigerian Investments Limited respec t ive ly .

However, these e f f o r t s were d i r e c t e d mainly towards

Kaduna Cap i t a l T e r r i t o r y and t h e f a r North-Zaria, Kano,

Gusau, Maiduguri and Sokoto. Some c r i t i c s term t h i s a r e a

t h e "proper North.;' The Middle Bel t a r e a of t h e Region

o r t h e "Northern f r inges tb according t o some c r i t i c s

comprising t h e following S t a t e s , Bauchi, Benue, Gongola,

Kwara, Niger and Plateau were v i r t u a l l y neglected as far

a s t h e l o c a t i o n of i n d u s t r i e s was concerned, desp i t e t h e

a v a i l a b i l i t y of s k i l l e d labour and i n d u s t r i a l raw mate r i a l s

i n t h e area . However, t h e only i n d u s t r i e s e s t ab l i shed

by t h e New Nigerian Development Corporation i n former Benue

I 3 l < 2 t e ~ u . . . S t a t e and Kwara S t a t e include t h e Northern

h i g e r i a Fibre Factory i n J o s , Bacita Sugar Company i n new

3uss? i r ) Kwarq S t ? t e , and t h e New Nigerian Tinber Company

i n Okura-01afia i n Dekina Local Government Area of Benue Sta te .

When twelve S t a t e s were c r e a t e d i n May 1967 by

the Gowon Administration t h e former Idoma and Tiv a r e a s

of present Renue S t a t e were i n ~ e n w - P l a t e a u s t a t e while t h e

fc:rmcrIgala and Bassa a r e a s were i n Kwara S t a t e .

I n Benae-Plateau S t a t e t h e Government f e l t t h a t

roads and o ther communication network should first

be developed. ' Beyond t h i s cons idera t ion t h e Government

d i r e c t e d i t s a t t e n t i o n t o t h e provis ion of por t ab le

dr inking water, h e a l t h c a r e . f a c i l i t i e s , o f f i c e

accommodation and higher edu2ation. The Government

the re fo re paid l i t t l e o r no 3 t t en t ion t o i n d u s t r i a l

development df t h e S t a t e during i t s l i f e time ( ~ p r i l

1968-Narch 1976). I n Kwara S t a t e t h e major .cons t ra in t

t o i n d u s t r i a l development was f inance. 3

When Benue S t a t e w a s carved out of t h e defunct Benue

: Pla teau . and Kwara S t a t e s i n 1976 by t h e Murtala

Muhammed Administration, "The S t a t u s of i ts i n d u s t r i e s

and economy i s the re fo re l a r g e l y a funct ion of these

v a r i a b l e s i n i t s mother s t a t e s , n 4 and t h e u t t e r neglec t

by i t s grandmother, t h e Government of t h e defunct

Northern Nigeria and i t s agencies.

The poverty of i n d u s t r i e s and t h e lack of i n d u s t r i a l

i n f r a s t r u c t u r e s i n Benue S t a t e can the re fo re be a t t r i b u t e d

t o t h e f a i l u r e of i t s mother S t a t e s , t h e former

Renue-Plateau and Kwara and t h e Government of t h e defunct

Rorthern Nigeria t o l a y any foundation f o r i n d u s t r i a l

development of the a r e a t h a t i s now Denue S t a t e .

1 . STATEMENT OF E'IIOBLEM

Benue S t a t e came i n t o exis tence on 1 s t Apr i l , 1976.

The 1963 census put; t h e population of t h e S t a t e a t 2.4

mi l l ion but by October, 1987 i ts estimated populat ion

stood a t 4.6 mi l l ion . 5

A t t h e incept ion of the S t a t e t h e r e were only t w ~

i n d u s t r i e s , New Nigerian Timber Company Limited (NNTC)

t r a n s f e r r e d f~otn-Kward S t a t e following t h e c r e a t i o n of

Benue S+ate out of t h e forme- Benue-Plateau and Kwara

S t a t e s and the o the r , Benue 3ement Company Limited (BCC)

owned j o i n t l y by t h e Federal Government and t h r e e S t a t e

Governments , Benue , Gorlgola ;.nd Plateau. Investment

promotional e f f o r t s of t h e S l a t e Government and t h e

Government d i r e c t p a r i i c i p a t i o n i n i n d u s t r i a l p r o j e c t s

increased t h e number of i n d u s t r i e s i n t h e S$ate from two

i n Apr i l , 7976 t o e i g h t by December, 1986 ( ~ p p e n d i x I).

Only one of them i s p r i v a t e l y owned.

The a s s e r t i o n by sortie observers t h a t Benue S t a t e

is f i n a n c i a l l y poor because it i s i n d u s t r i a l l y poor

appears t o be supported by the S t a t e i n t e r n a l l y generated

6 revenue f o r t h e per iod 1981 t o 1987 as shown below.

Year - 1981

I 982

1983

1984

1985

1986

1987

Amount i n Mil l ion

H15.194

5 ,864

N16.095

it22.149

~25.175

gk.285

a3 . 757

On t h e average dru ing t h e period i n quest ion t h e

S t a t e Government generated i n t e r n a l revenue of only

$?26,074 mi l l ion per year , T h i s is very poor f o r a S t a t e

whose annual budget is wel l ;ver g400 mi l l ion . This means

t h a t t h e S t a t e depends almost e n t i r e l y on i t s s t a t u t o r y

g ran t from t h e Federal Government t o execute i t s programmes.

To broaden t h e i n t e r n a l revenue base of Benue

S t a t e t h e r e i s urgent need t o i n d u s t r i a l i s e t h e S t a t e ,

I n d u s t r i a l i z a t i o n w i l l not o r l y con t r ibu te t o t h e growth

of t h e S t a t e ' s income a ~ d imrrovement of l i f e f o r t h e

e n t i r e population of t h e S t a t e and c r e a t e employment

oppor tun i t i e s , but it w i l l a l s o con t r ibu te t o the

development and t r a n s f e r of techonology.

Benue S t a t e Government alone cannot achieve rap id

i n d u s t r i a l i z a t i o n of t h e S t a t e . Rapid i n d u s t r i a l i z a t i o n

of t h e S t a t e can be achieved through t h e cooperation of

t h e S t a t e Government, f i n a n c i a l i n s t i t u t i o n s and i n d u s t r i a l

promoters from wi th in and t h e outs ide t h e S t a t e .

Recognizing t h i s f a c t Benue S t a t e Government took

c e r t a i n s t e p s t o encourage p r i v a t e s e c t o r investment i n

t h e i n d u s t r i a l sec to r . It has extabl i shed an investment

company, t h e Benue Investment Company Limited t o give

f i n a n c i a l and managment support t o a s p i r i n g i n d u s t r i a l

promoters. I n December 1984 t h e Benue I n d u s t r i a l Development

Fund was launched t o mobilize resources f o r t h e development

o f i n d u s t r i a l layouts i n S t r a t e g i c loca t ions i n t h e S t a t e .

I n a d d i t i o n , the S t a t e Government had declared i t s

i n t e n t i o n t o minimise d i r e c t p a r t i c i p a t i o n i n i n d u s t r i a l

p r o j e c t s and t o encourage i n d u s t r i a l investments from both

within and outs ide t h e S t a t e by providing i n d u s t r i a l

i n f r a s t r u c t u r e s .

I n addi t ion t o the s e v e r a l s t a t u t o r y incen t ives

c rea ted by t h e Federal Government f o r i n d u s t r i a l

promoters who s e t up i n d u s t r i a l p r o j e c t s i n any S t a t e

of t h e Federat ion t h e Benue S t a t e Government provides

incent ives of non-statutory na tu re such a s the provis ion

6.

of i n d u s t r i a l p l o t s , f e a s i b i l i t y studies- and f i n a n c i a l and

managemeni. se rv ices provided by t h e Benue Investment Company

Limited. The S t a t e Government i n i t s 1988 budget has

earmarked t h e sum of W 1 mil l ion t o augument t h e Benue Indus-

t r i a l Development Fund f o r t h e development of i n d u s t r i a l

e s t a t e s .

Benue S t a t e i s r i c h l y endowed with a g r i c u l t u r a l and mineral resources which should a t t r a c t s i zeab le investment i n agro-based and chemical i n d u s t r i e s D~ppendix 2) . I n s p i t e of the a v a i l a b i l i t y of s k i l l e d labour , a g r i c u l t u r a l and mineral resources and a t r r a c t i v e incen t ives of fered by t h e Benue S t a t e Government t o both ind iv idua l and corporate i n d u s t r i a l i n v e s t o r s t h e i n d u s t r i a l s e c t o r of t h e s t a t e ' s economy i s y e t t o r ece ive any boost from inves to r s e i t h e r from wi th in o r outs ide t h e S t a t e .

: T h e q c ~ ~ t i o n on t h e lips of every concerned c i t i z e n

of Benue S t a t e i s what a r e t h e problems m i l i t a t i n g a g a i n s t

i n d u s t r i a l developments of t h e S t a t e s ince t h e a v a i l a b i l i t y

of i n d u s t r i a l raw mate r i a l s , s k i l l e d labout , and t h e

generous incen t ives o f fe red by t h e Benue S t a t e Government,

have apparent ly f a i l e d t o a t t : - ac t i n d u s t r i a l inves to r s t o

i n v e s t i n t h e S t a t e , The mai.1 quest ion of t h e s tudy i s

the re fo re t o i n v e s t i g a t e t h e :~roblems with i n d u s t r i a l

development o f Benue S t a t e .

1,2 OBJECTIVES -- OF THE STUDY

I n d u s t r i a l development i r ; Nigeria is.government-

p r ~ a t ~ d through t h e p r o v i s i o ; ~ of i n f r a s t r u c t u r a l

Benue State is underdeveloped industrially. - . .

several factors are responsible for this. The main

objectives of the study therefore are:-

(i) To find out what these factors are.

(ii) Which of these factors are significant or

responsible for the slow pace of industpial

development of Benue State.

(iii) To evaluate the contributions of both the Benue

State Government and the Federal Government to

the industrial development of Benue State since

its inception in 1976.

(iv) To assess the roles of corporate bodies and

private individuals in the industrial development

of Benue State.

I .3 HYFOTHESES

The study will be undertaken on the bases of the

following hypotheses.

I. The level of infrastructural development affects

industrial development o< Benue State.

2. Shortage of investment capital slows down the rate

of industrial development of Benue State.

3. Long gestation period of industrial projects

influences potential industrial promoters.

- 4. The methods of implementation of government

industrial policies affect the rate of industrial

development of Benue Stat?.

8

5. The ra te of a v a i l a b i l i t y of e n t r e p r e n e u r s

i n f l u e n c e s i n d u s t r i a l development o f Benue

1.4 SIGNIFICANCE OF THE STUDY

S t a t e .

I t h a s been t h e foremost concern of S U C C ~ S S ~ V ~

a d m i n i s t r a t i o n s i n Renue S t a t e t o improve t h e s t anda rd

of l i v i n g of t h e people through t h e p r o v i s i o n of b a s i c

a m ~ n i t i e s l i k e good d r i n k i n g wate r , medicare

f e c i l i t i o s , good r o a d s , e l e c t r i c i t y , housing, q u a l i t a t i v e

eeuca t i on and a l s o by p rov id ing employment o p p o r t u n i t i e s . 8

"Lack of i n d u s t r i e s c r e a t e s enormous s o c i a l and

cconcmic problems. One s o c i a l problem i s l i m i t e d

employment o p p o r t u n i t i e s . Government, anx ious t o

c a t e r f o r t h e army of unemployed s choo l l e a v e r s is

n a t u r a l l y compelled t o overburden t h e c i v i l s e r ~ i c e . ~ ! 9

I n d u s t r i a l i z a t i o n i s t h e r e f o r e h i g h l y d e s i r a b l e i n

Senue S t a t e f o r it w i l l i n c r e a s e t h e revenue o f t h e S&ate ,

Th is w i l l n o t on ly enab l e t h c S t a t e Government t o p rov ide

employment o p p o r t u n i t i e s f o r them and t h u s improve t h e i r

socio-economic l i f e ,

The s tudy w i l l be of s i g n i f i c a n c e i n t h e fo l l owing

ways:

(i) To draw t h e a t t e n t i o n o f policy-makers and

economic p l a n n e r s f o r t h e S t a t e t o :

( a ) p r o v i s i o n of i n f r a s t r u c t u r e s ;

( b ) problem of i n d u s t r i a l f i n a n c i n g ;

( c ) inadequate supply of appropr ia te t e c h n i c a l

manpower ;

( d ) lack of indigenous entrepreneurship;

( e ) slow implementation of the S t a t e Government

po l i cy on t h e provis ion of i n d u s t r i a l layouts

Itin four s t r a t e g i c and s u i t a b l e a r e a s of t h e

S t a t e , Makurdi, Katsina-Ala, Otukpo and Idahtt 7

and t h e delay i n processing of app l i ca t ions

f o r c e r t i f i c a t e of occupancy f o r i n d u s t r i a l

p l o t s ;

( f ) p o l i t i c s of l o c a t i o n of Federal Government

owned i n d u s t r i e s ;

( g ) the relevance of t h e Federal Government indus t r ia l .

end e c o n o ~ i c p o l i c i e s t o t h e i n d u s t r i a l development

of Benue S t a t e .

( i i ) To emphasize t h e need f o r t he c i t i z e n s t o

p a r t i c i p a t e i n t h e i n d u s t k i a l development of

t h e S t a t e through j o i n t ventures .

( i i i ) The study w i l l a l s o be use fu l t o i n d u s t r i a l

promoters and f i n a r c i a l i n s t i t u t i o n s who may

wish t o p a r t i c i p a t e i n t h e i n d u s t r i a l development

of the Benue S t a t e .

1.5 SCOPE OF THE STUDY

h h i l e t h e study w i l l . d i scuss t h e problems of

i n d u s t r i a l development of Benue S t a t e genera l ly ,

emphasis of t h e d iscuss ion w i l l be on t h e problems ,

m i l i t a t i n g aga ins t t h e establishment of la rge-sca le

and medium-scale i n 8 u s t r i e s i n t h e S t a t e .

In-depth discussion of t h e problems of small-

sca le i n d u s t r i e s i n Benue S t a t e w i l l not be undertaken

except i n so f a r a s re ference t o them w i l l make our

d iscuss ion b e t t e r , c l e a r e r and complete.

1 .6 ILjETHODOLOGY

Data f o r t h e study w i l l be c o l l e c t e d from both

primary and secondary sources. In t h e case of primary

sources t h e da ta w i l l be c o l l e c t e d by personal

interviews through t h e use of ques t ionnai re . Ef fo r t s

w i l l be made t o in terv iew some key persons and o f f i c i a l s

of Eenue S t a t e Min i s t r i e s of Finance and Economic

Planning; Comnerce and Indus t ry ; those of Benue Chambers

of Commerce, Industry, Mines and Agr icul ture ; Benue

Investment Company Limited acd f i n a n c i a l i n s t i t u t i o n s

and some i n d u s t r i a l i s t s with1.n t h e S t a t e whose views

a r e ccnsidered p e r t i n e n t t o -:,ne purpose of t h e study.

The sources f o r secondm-j da ta include pub l i ca t ions

of both Benue S t a t e Governm,:nt and Federal Government

and t h e i r agencies , those of Renue Chambers of Commerce,

In$us t ry , lilinks and Agricul t \ lce and Nanufacturing

A S S ~ ~ ~ - ' ~ : ; , - ,- i G A s ~ r i a and r ?Levant p e r i o d i c a l s and

na t iona l d a i l i e s .

I .7 DE;FINITION OF TERI,IS

For t h e purpose of t h i s s tudy the following terms

s h a l l have t h e meanings a s per d e f i n i t i o n s below:

INDUSTRIAL LAYOUT"

An I n d u s t r i a l layout i s a designated and continous

s t r e t c h of land s p e c i a l l y planned and beaconed

i n t o s i z e a b l e p l o t s f o r purposes of i n d u s t r i a l

a c t i v i t i e s .

INDUSTRIAL PLOT"

An i n d u s t r i a l p l o t is a p iece of land within an

i n d u s t r i a l layout and has dimensions of 175 x 175

2 f e e t f o r purposes of i n d u s t r i a l a c t i v i t i e s .

INDUSTRIAL ESTATE ' An I n d u s t r i a l E s t a t e i s a t r a c t of land with

s tandard i n d u s t r i a l bui ld ing i n advance of demand

and a v a r i e t y of e s s e n t i a l se rv ices needed f o r t h e

operat ion of an indus t ry .

STATUTORY INCENTIVES' 3

These a r e Federal Goverrment s p e c i a l incent ives

t o promoters of project^ i n p r i o r i t y sub-sectors

of t h e economy and these a r e embodied i n t h e

following l e g a l instruments:

( i ) The I n d m t r i a l Development (Income Tax ~ e l i e f )

Act 1958 a s amended by Decree No.22 of 1971.

( i i ) The Customs Duties ( ~ p p r o v e d User scheme) .

(iii) The Customs Duties (Dumped and Subsidized ~bods)

Act 1958.

(iv) The Customs (Draw-back) Regulations 1959

(v) Companies Income Tax Act, 1961 (Accelerated

Depreeistion)

5. NCN-STATUTORY INCENTIVES 14

Incentives of a non-statutory nature are the

provision of industrial plots, industrial estates

and feasibility studies on viable projects by the

Benue State Government to prospective industrial

promoters.

6. CUSSES OF SIZES OF IIVDUSTHY~~

(i) Small-Scale Industry - A small-scale industry is a manufacturing pr~ocessing or service whose

capital investment does not exceed W250,000 in

machinery and equipment only.

(ii) Medium-Scale in dust?^

A medium-scale industry is a manufacturing,

processing or servize industry that has capital

investments in machinery and equipment (SIC)

worth more than X25.1,000 but less than W S million.

(iii) Large-Scale Industry: -.

Any manufacturing processing or service

establishment with capital investments in

machinery and equipents (SIC) exceeding W5

million is regarded as a large-scale,industry

in Nigeria.

CIIAFTEil TWO

R3/IEW C F RELATED LITiB!;TURE -- - 2.0 INTRODUCTION

I n t h i s chapter we s h a l l i n v e s t i g a t e the problems

of i n d u s t r i a l development i n Nigeria and examine t h e

views of some w r i t e r s on t h e problems of i n d u s t r i a l

development i n developing Countries i n genera l and

i ' iger ia i n p a r t i c u l a r . It i s important t o bear i n mind

t h a t whatever i s s a i d about t h e problems m i l i t a t i n g

a g i n s t i n d u s t r i a l developc~ent of Nigeria a p p l i e s equal ly

t o benue S t a t e which i s the focus of our study.

Attempts w i l l a l s o be made t o h i g h l i g h t t h e problems

of i n d u s t r i a l development pecu l i a r t o Benue S t a t e .

This chapter w i l l not only dwell on t h e problems

of i n d u s t r i a l development of Nigeria it w i l l a l s o

examine h i g e r i a ' s i n d u s t r i a l p o l i c i e s s ince 1960

!.,Then t h e Country a t t a i n e d p o l i t i c a l independence as w e l l

as t h e problems of manufacturing i n d u s t i r e s under the

S t r u c t u r a l Adjustment hogramne introduced by the

13abangida Administration i n J ~ l y 1986 t o revamp t h e

economy.

However, i n d u s t r i a l i z a t i o n has mer i t s f o r every

modern s t a t e and we s h a l l take a look a t them a l s o

i n this chapter . For c l e a r understanding of t h e views

of some w r i t e r s we s h a l l examine here we f e e l it i s I

necessary to def ine t h e term bt I n d u s t r i a l i z a t i o n . United Nations Committee on I n d u s t r i a l "

Development de f ines f f i n d u s t r i a l i z a t i o n " a s t h e

process of economic development i n which a growing p a s t of t h e n a t i o n a l resources i s mobilised t o develop t e c h n i c a l l y up-to-date, d i v e r s i f i e d , domestic economic s t r u c t u r e cha rac te r i sed by a dynamic manufacturing s e c t o r having and producing means of production and consumer goods and capable of ensuring a high r a t e of growth f o r t h e economy a s a whole and of achieving economic and s o c i a l progress!

2.1 NIGERIA INDUSTRIAL FOLICIES

2 Dwivedi has explained why t h e r e should be an

, - I n d u s t r i a l pol icy i n a democratic mixed economyff l i k e

t h a t cf Kigeria where government has adopted economic

planning a s an instrument of guided i n d u s t r i a l i z a t i o n

Tor e s t a b l i s h i n g s o c i a l i s t p a t t e r n of soc ie ty" , c o n t r o l

an2 regu la t ion of p r i v a t e i n d u s t r i e s with a view t o br inging

them i n l i n e with n a t i o n a l goa l s becomes indispensable ,

According t o him t h e regu la to ry func t ions of t h e

government i n a mixed economy include:-

( i ) Determining t h e a r e a s f o r p r i v a t e and publ ic

s e c t o r i n d u s t r i e s ,

( i i ) Laying down t h e pol icy guide l ines and means f o r

c o n t r o l l i n g and reg!r la t ing t h e p r i v a t e and publ ic

s e c t o r i n d u s t r i e s .

( i i i ) . Ass i s t ing , promoting and d i r e c t i n g t h e p r i v a t e

entrepreneurship, acd

( i v ) F ro tec t ing t h e small s c a l e i n d u s t i r e s from

so::li::Lition aga ins t l a r g e s c a l e i n d u s t r i e s and

monopolies.

The government c a r r i e s out these r egu la to ry

funct ions3 through:

( i ) Leg i s l a t ive measures, and

( i i ) Discret ionary changes i n i t s f i s c a l and

monetary p o l i c i e s .

The l e g i s l a t i v e measures or t h e d i r e c t c o n t r o l a r e

formulated i n t h e form of t ' Industr ia1 and Licencing

pol icy"

TUL IhCUSTRIAL POLICY 1962-68 - The f i r s t at tempt t o formulate i n d u s t r i a l pol icy ,

the po l i cy gu ide l ines and s t r a t e g i e s on i n d u s t r i a l i z a t i o n

i n Kigeria was i n 1962-68 F i r s t Kat ional Development

Plan during t h e Balewa Administration. Since i n d u s t r i a l i -

za t ion became t h e primary r e s p o n s i b i l i t y of the then Regional

governments not much was achieved due t o c a p i t a l shortage 4

"T P L j L ITiDUSTRIAL POLICY 1970-74

During t h e Second Kational Development Plan (1970-74)

t h e Government then i d e n t i f i e d theproblems m i l i t a t i n g

a g a i n s t i n d u s t r i a l i z a t i o n i n Nigeria a s l ack of i n t e r -

dependence of i n d u s t r i e s , low l o c a l valude added and low

l e v e l of indigenous ownershil)" 5

6 The new j r A l i s t r i a l pol icy of t h e Government was

dm"-. ;..-. ~y down a s o l i i 'oundation f o r long-term

steady growth and development of t h e i n d u s t r i a l s e c t o r .

I n p u r c u z x e of the obj,:ztives of t h i s i n d u s t r i a l

p o l i c y t h e Federa l Government promulgated t h e Niger ian

E n t r e p r i s e s bromotion Decree, popu la r ly known as

Ind igen iza t ion Decree, 1972. The Decree r e s e r v e s c e r t a i n

s e c t o r s of t h e economy e x c l u s i v e l y f o r ibigerians and

l i m i t e d t h e p ropor t ion of f o r e i g n ; : a r t i c ipa t ion i n o t h e r s .

Vhether t h e Decree has achieved i t s aims is beyond t h e

scope of t h i s s tudy.

7'1-i;J IPrDUSTRIAL POLICY, 1975-80 - This p o l i c y i d e n t i f i e d t h e major c o n s t r a i n s t s which

had hampered t h e development i n manufacturing s e c t c r

i nc lude :

( a ) I n f r a s t r u c t u r a l c o n s t r a i n t s

( b ) R e s t r i c t i v e i n d u s t r i a l p o l i c y and

a d m i n i s t r a t i v e p r a c t i c e .

( c ) Shortage of i n d u s t r i a l manpower, and

( d ) Slcw implementation of t hcpub l i c s e c t o r

manufacturing p r o j e c t s .

The o v e r a l l objective of t h e Government p o l i c y

dur ing t h e p l a n pe r iod with r e s p e c t t o t h e manufacturing

s e c t o r i nc ludes t h c fc l lowing: C

( a ) remoSal of most of thcproblems i d e n t i f i e d above,

( b ) t h e l i b e r a l i s a t i o n of i n d u s t r i a l p o l i c y t o

encourage indigenous and f o r e i g n en t r ep reneu r s

i n most of t h e sub-sec tors of manufacturing.

17

increased use of Kigerian Bank f o r Commerce and

indus t ry , and theNiger i an I n d u s t r i a l Development

Bank, and d i r e c t Government p a r t i c i p a t i o n a s t h e main

instruments of olrmership and ind igen i sa t ion of

business.

review of t h e e x i s t i n g incen t ives t o take account

of t h e present r e a l i t i e s of the Nigerian s i t u a t i o n .

The pol icy ob jec t ives of t h e defunct Benue-Plateau

Ste . te o u t of which a p a r t of t h e present Benue S t a t e was

carved, emphasized t h e promotion of forward and backward

l inkages between t h e a g r i c u l t u r a l and i n d u s t r i a l s e c t o r s

and t h e tapping of t h e S t a t e ' s n a t u r a l resources a s inpu t s f o r

ind .us t r ia1 s e c t o r .

kccordinp t o t h e Plan:

"Additional ob jec t ives of the S t a t e Government include t h e s p a t i a l d i s t r i b u t i o n of i n d u s t r i e s , resource mobi l iza t ion , d i v e r s i f i c a t i o n of t h e rural . economy and t h e reduct ion of t h e rura l /urban income inequa l i ty which spurs the rura l /urban migration. The provis ion of necessary i n f r a s t r u c t u r a l f a c i l i t i e s t o a t t r a c t i n d u s t r i e s t o t h e r u r a l a r e a s of t h e S t a t e w i l l be complemented by a wel l planned scheme of r u r a l i n d w t r i a l c red i t l l lo -

The Fresent I n d u s t r i a l Pol icy , 1980-1985 - The f i r s ? a r t i c u l a t e Nigerian I n d u s t r i a l Pol icy

a n i s t r a t e g y launched i n 1980 ushered i n t o t h e Country a

dynamic and more r a t i o n a l i n d u s t r i a l pol icy . The po l i cy

clocument s t a t e d among 0ther.tkiing.s:

I n order t o ensure t h a t i n d u s t r i a l i z a t i o n br ings i n its wake t r u l y b e n e f i c i a l economic and s o c i a l development, t h e growth of i n d u s t r i e s has t o be regula ted and guided along d e f i n i t e channels t o achieve c e r t a i n s e t o b j e c t i v e s ~ l I .

Under t h e 1980 Nigerian I n d u s t r h ~ Pol icy and

St ra tegy any proposals f o r t h e establishment of

i n d u s t r l c s i n Nigeria had t o c a r e f u l l y consider the

following 12

1. The maximization of value added through:-

( a ) U t i l i z a t i o n of l o c a l raw mate r i a l s

( b ) agro-based i n d u s t r i e s

( c ) l inkages

(d) backward i n t e g r a t i o n

( e ) manpower development

( f ) technologica l development

2. Research and Development

3. Employment generat ion

4. Steady growth of technologica l and mate r i a l s e l f - r e l i a n c e

5. I n d u s t r i a l d i s p e r s a l

!'The proposal f u l l y recognised p r i v a t e e n t e r p r i s e

and i n i t i a t i v e i n t h e i n d u s t r i a l development of t h e

Countryt1 l3 The respons ib i l ixy of a s s i s t i n g i n d u s t r i a l i s t s

a.?d f a c i l i t a t i n g t h e approval process f o r e s t a b l i s h i n g

ari indus t ry became t h e r e s p o n ; i b i l i t y of t h e Minis ter

02 Indus t r ies . .

2.1 .I - PHASES CF NIGEXIAN I N D K T R I A L POLICIES

Usoro has divided t h e Ni:,erian i n d u s t r i a l p o l i c i e s i n t o

t h r e e i n t e r - r e l a t e d though d i s t ingu i shab le phases. -. I n h i s view "Nigerian i n d u s t r i a l p o l i c i e s can be viewed a s

hcving passed through theree inter-related though

distinguishable phases and these wereu 74

( 1 the initial open-door phase-roughly between

1947 and 1962. The distinguishing feature of

this phase was the philosophy of welcoming any

industrial develo~ment activity, and the drive

towards frequent overseas inducement campaign.

During this period Government policy goals

emphasised governnentts role in industrialization

as being a primary party in the process of

industrialization.

( 2 ) the realization phase which coireided with the

First liational 9evelopment Flan, 2962-68.

The implementation of the policies of the first

phase continued during this phase. However, the

distinguishing feature of this phase was the

awareness that the policies of the first phase

represented obstacles to the development of

private Nigerianentreprise, Usoro aseerks that

industrialization was not only to be the

exclusive activity of foreign private enterprise,

but also within its sphere it was the intention of

the Governments to enable Ldigerian businessmen to

control increasing r.ortions of the Kigerian

( 3) the. transitional phase, 1970-74 .wlk&%in -this

phase the weakness of the first two phases were

recognised by policy. For instance the private sector

had hitherto led the public sector towards industrialization

more recent policy tended to strive towards bridging the

gap between the two sectors. In so doing foreign private

investment could no longer be given unqualified guarantees

against nationalisation. The second National Development

Plan 1970-74. expressly states.

It is vital therefore for Government to acquire and

control on behalfof the Nigerian society, the greater

proportion of the productive assets of the country.

To this end the Government will seek to acquire by

law if necessary equity participation in a number

of strategic industries that will be specified from

time to time., In order to ensure that economic

dcstiny of Nigeria is determined by Nigerians themselves,

the Government will seek to widen and intensify its

positive particip3tion in industrial development. 16

Usoro, however, pointed out that within the first two

phases, that is from 1947 to the commencement of the Nigerian

Civil War- the background for economic choice and thus of

policies relating to industrialization in Nigeria had been

through polifical decision, 17

2.1 .2 BENUE STATE INDUSTRIAL POLICY

The Benue State Industrial Development Policy

bbjfctivdare closely tied "tc those of the Federal

Government as contained in the guidelines for the Fourth

Development Plan," I 8

Hcwever, as a State richly endowed with agricultural

resources the industrial development policy has been

titled heavily towards the enhancement of agro-allied

industries.

The industrial policy objective of the State

Government is to: 19

1. (a) Accelerate industrial development of the

State through private sect~rparticipation

(b) Where the State Government is involved, it would

only be to show the way and encourage private

sector .participation

(c) The Government would only be involved directly

in the establishment cf strategic industries.

The State Government has come up with the policy measures

as given belows:

(i) LAYING AN INDUSTRIAL BASE

Government is making a conscious effort to set

up cottage industries in all the Local Government

Areas to utilise the local raw materials in those

(ii)

locations.

EXPORT PROMOTION

~overnment will shift eaphasis on export-oriented

products manufactured from locally available raw

materials particularly in the area of agro-based

and allied industries. ,

( iii) SMALL ,SCALE INDUSTRIES

To advance this policy, the State Government

through the Ministry of Commerce and Industries

is revitalising the Scheme, The Scheme will

encourage the development of modern processing

industries at a small scope within the reach of

small business entrepreneurs,

3 . In order to attain the industrial objectives, the

State Government has carefully developed the following

strategies:

(a) INCENTIVES TO PRIVATE INVESTORS

- easy acquisition of land for industrial establishments.

- development of infrastructure through industrial lay-outs,

(b) ESTABLISHMENT OF COTTAGE INDUSTRIES

This is aimed at providing linkages to medium

and large scale industries.

(c) TRADE FAIRS

Participation in fairs to project the huge

agro-industrial potentmls of the State.

The need for a stable pol+cy environment for ttsuccess

in the industrialization effortN cannot be over-emphasised.

"Past frequent shifts in industrial

policy measures have taken a biz toll on the country's

industrial prcgress" 20

2.2 CONSTRAINTS TO INDUSTRIAL DEVELOPMENT I N NIGERIA

I n d u s t r i a l i s a t i o n i n Nigeria has been bese t by a

number of problems. These problems have been l a i d

squarely on t h e shoulders of our Br i t i sh Colonial masters

who r u l e d t h i s country fcr nea r ly a Century.

They were accused of not lay ing a s o l i d "foundation f o r t h e

i n d u s t r i a l i z a t i o n of t h e i r ColoniesttZ1 including Nigeria.

According t o Osuntokun, t h e Br i . t i sh who were t h e founders

~f modern Nigeria d i d not p lan f o r an i n d u s t r i a l i z e d S t a t e .

They wanted "Nigeria t o be an a g r i c u l t u r a l e s t a t e of peasant

farmers producing food f o r s e l f regenera t ion and cash crops

f o r exportll?' Nigeria was e s s e n t i a l l y t o serve a s a market

f o r E r i t i s h manufactures. They paid l i t t l e a t t e n t i o n t o t h e

clevelopment of i n f r a s t r u c t u r e necessary f o r i n d u s t r i a l

6evelopment. Speaking i n a s i m i l a r ve in , .a former Minis te r

of S t a t e f o r I n d u s t r i e s D r . Igbani observed t h a t Ifthe Colonial

pcwers d id not provide any b a s i s f o r i n d u s t r i a l i z a t i o n as n e i t h e r

t h e i n f r a s t r u c t u r e nor the t ra i .ned manpower was developed.

Nigeria w a s seen a s a market f c r i n d u s t r i a l goods from t h e

i n d u s t r i a l i z e d countries: ' . 2 3

The Third National Developnent Plan, 1975-80 i d e n t i f i e d t h e

mqjor c o n s t r a i n t s which had hampered development i n t h e

manufacturing s e c t o r t o include:-

(a ) I n f r a s t r u c t u r a l cr?nstrgaints . (b) R e s t r i c t i v e i n d u s t r i s l po l i cy and adminis t ra t ive

p rac t i ce .

( c ) Shortage of i n d u s t r i a l manpower and t h e r e l a t i v e una t t r ac t iveness of manufacturing t o indigenous

businessmen.

(d) Slow implementation of t h e publ ic s e c t o r manufacturing p r o j e c t s .

To t h e above l is t of c o n s t r a i n t s t o i n d u s t r i a l development Igbani has added t h e following: 25

( i ) t h e l ack of entrepreneurship and management

( i i ) uneven development both geographical ly and

s e c t o r a l l y ( i i i ) f inance and

( i v ) t h e s p e c i a l problems of small-scale industry.

Also Nwolise adds f u r t h e r t o t h e l i s t of c o n s t r a i n t s . H i s l is t includes: 26

( I ) Leadership

(2 ) Technology

(3) The a t t i t u d e of the mul t i -na t ionals

(4) Land tenure system, and ( 5 ) P o l i t i c s of i n d u s t r i a l loca t ions .

kluko th inks t h a t "unstable and uncer ta in p o l i t i c a l systemn i s an impedimnt t o economic and i n d u s t r i a l development i n Nigeria today. 27

Some of these i d e n t i f i e d c o n s t r a i n t s t o i n d u s t r i a l development of Nigeria w i l l be examined i n more d e t a i l i n t h e following sub-sections.

2.2.1 INFRASTRUCTURE

I n d u s t r i a l i n f r a s t r u c t u r e such as water, communication f a c i l i t i e s , e l e c t r i c i t y and :?ood roads a r e far from being adequate where they e x i s t . The s e r v i c e s of t h e Nigeria

Railway Corporation a r e not m l y unre l i ab le but a r e a l s o e r r a t i c . Eommenting on t h e inadequancy of i n f r a s t r u c t u r e i n Nigeria , Nwosu says , "Thwe i s exaspera t ing delay and unbounded ine f f i c i ency i n implementing these publ ic

s e c t o r programmes which represen t the foundation for t h e

mowth of t h e i n d u s t r i a l sec torn ._.)

28

The Third National Development Flan notes with

crncern how inadequate i n f r a s t r u c t u r e increases not only

t h e c c s t of i n i t i a l investment but a l s o the opera t iona l

c c s t s of p r o j e c t s "thereby ccmpressing t h e commercial

f e a s i b i l i t y of economically d e s i r a b l e p r o j e c t s . 29

The ylan30 observes t h n t both t h e a v a i l a b i l i t y and t h e

c c s t cf water, commu~ication f a c i l i t i e s , e l e c t r i c i t y ,

tr%:>nsport e s p e c i a l l y rai lway, p c r t f a c i l i t i e s pose se r ious

~ r o b l e m s t o manufacturing e n t e r p r i s e s i n Nigeria.

The Daily Times Opinion of Friday, Ju ly , 8, 1988,

:ilc.;nking telephone access ib le" s t a t e d t h a t t h e r e were a b o u t

20bp200 app l i can t s on t h e wai t ing l i s t f o r NITEL1s, d i r e c t

exchange telephone l i n e s and t h a t from a v a i l a b l e records

onl-y 15 per cent were l i k e l y t o be successful . Telephone

is z necess i ty f o r l i f e iriclclding business l i f e and not a

luxury a s we a r e being made oy NITEL o f f i c i a l s t o bel ieve.

I< cur telephone system i s r n a l l y e f f i c i e n t Where is ... n-wter business e f f i c i ency by helping t o save time and L.

money spent on t ransport"31 and t r a v e l l i n g .

IR Eenue S t a t e inadquate i n f r a s t r u c t u r e is t h e g r e a t e s t

stumbling block t o i n d u s t r i a l development of the S t a t e .

I n an interview with Bala Dzn !,bu of Newswatch Communications

Limited i n May, 7988, a fcrmer F l i l i t a ry Governor of Benue

S t a t e Colonel I d r i s Garbn, l3.aented t h e absence of adequate ,

i n f r a s t r u c t u r e i n t h e S t a t e .

The absence of adequate supply of e l e c t r i c i t y remains

our biggest headache. The S t a t e has a l s o one of the

worst communication problems. The roads a r e i n poor

s t a t e , telepohne and telecommunication s e r v i c e s a r e a l s o

inadequate. There is cnly one f l i g h t t o Makurdi

d a i l y operated by Kigeria Airways. These f a c t o r s have

g r e a t l y hindred e f f o r t s t o develop t h e S t a t e . 32

Inadequate i n f r a s t r u c t u r e i s a se r ious c o n t r a i n t

on i n d u s t r i a l development. * t I n d u s t r i a l p r o j e c t s t h a t

m u s t bear t h e c o s t of acquir ing s u i t a b l e i n d u s t r i a l p l o t s

2nd providing access roads, water and e l e c t r i c i t y a r e bound

t o opera te i n e f f i c i e n t l y " j3 Zven where such p r o j e c t s a r e

located near t h e sources nf r a w ma te r i a l s t h e i r products

1vc.y not be price-competit ive e s p e c i a l l y with imports.

P r i n c i p l e s of econcmic t m c h u s t h a t c a p i t a l i s one of

t h e f a c t o r s of producticn. It i s one of t h e basic

requirements f o r any i n d u s t r i a l p r o j e c t . I ts shortege or

leck of it hinders i n d u s t r i ~ l development, "... Industry

is l imi ted by c a p i t a l 1 ' 34 The recogni t ion of the importance

of c a ~ i t a l t c i n d u s t r i a l development i n Nigeria l e d t h e

Cr?Lewa Government t o esta 'bll sh t h e Nigeria I n d u s t r i a l

Development Bank Limited i n 1964 and t h e Gowon Mi l i t a ry

.',rlministrr-ition t o e s t a b l i s h in 1973 t h e h ige r i an Bank f o r

Comnercc and Industry l i rni tc I . These banks "were t o a c t a s

ca . ta lys ts t o t h e growth of i .3dus t r ies by con t r ibu t ing

t o t h c e ~ ~ L t y nnd loan c a p i t a l of such ventures . , I 35

The Third National Development Elan 7975-80 s p e l t o u t

new r o l e s f o r t h e two banks. "The NIDB and t h e NBCI are

expected t o p lay a more s t imula t ing r o l e i n t h e

mc7nufacturing a c t i v i t i t s o f t h e p r i v a t e s e c t o r , opera t ing

more a s i n d u s t r i a l promoters than as banks.ll 3 6 1t i s

q u i t e a d i f f e r e n t matter i f t hese f i n a n c i a l i n s t i t u t i o n s

a r e playing s a t i s f a c t o r i l y t h e i r new r o l e s ,

The shortage of c a p i t a l is a major problem confront ing

I I le i n d u s t r i a l i z a t i o n cf the Third World 37 Nwolise has,

hcwever, observed t h z t the i m p c t of t h e shortage of

c - p i t a 1 dwindled g r e a t l y when one looked a t t h e huge o i l

ji1cnt.y l o s t by Nigeria between 1975 and 1983. In h i s

o p i n i ~ n ?'the opportunity t o i n d u s t r i a l i s e with t h e o i l

bocm revenue was l o s t due t o l eader sh ip p r ~ b l c r n , ~ l 38

I n Benue S t a t e t h e lack of c a p i t a l is only second

t o t h e problem of inadequate i n f r a s t r u c t u r e both of which

[ y e a t l y hinder t h e develcpment of lxigerian i n d u s t r i a l

e n t e r p r i s e s i n t h e S t a t e .

Through t h e enactment rlf t h e Nigerian Lnt repr ises

Frcmotion Acts of 1972 and 1977, t h e Federal Government

t r i e d v t o encourage indigenous i n d u s t r i a l entrepreneurship" 39

licwever, many Nigerian inves to r s have not ye t acquired t h e

i n d u s t r i a l c u l t u r e of pa t ience , persevx-ance and d i l i g e n t

planning required by i n d u s t r i a l p ro jec t s . Many Nigerian

irrvestors p r e f e r t o inves t i n t r ad ing , road t r a n s p o r t ,

se rv ice i n d u s t r i e s and cons t ruc t ion , where r e t u r n s a r e

r e l a t i v e l y l a r g e and r a p i d , whi l s t not appearing t o t h e

inves to r t o e n t a i l s u b s t a n t i a l risks.lI 40 Bbdulkadir who

shares t h i s view says t h a t entrepreneurs a r e sca re i n t h e

country a t present as pecple a r e i n t e r e s t e d i n quick

y ie ld ing a ~ t i v i t i e s l l ~ ~ he major t a s k f o r t h e Governments

o f t h e Federation i s t o "mobilise Nigerian c a p i t a l and t o

encciurage s h i f t change i n t o processing and manufacturing

in t ius t r i e s ." 42 Management of both p r i v a t e and publ ic e n t r e p r i s e s i s

a prcblem confronting Kigeria a s a country. I n its bid

t u f ind a s o l u t i o n t o t h e problem o r t o improve t h e

s i tuz t io r l the Federal Government e s t ab l i shed the Centre

f o r Dlanagement Development (cMD) i n Lagos and t h e

iLc.:m.inistrative S t a f f College o f Kigeria (ASCON) i n Topo , Trtdq~;ry. "The Centre ( cen t re f o r Kanagement ~evelopment)

h\:is a mandate which includes t h e sponsoring, promotion and

ccncluct of research i n t o 21-1 a s ~ s e c t s of management and a l l i e d

s u b j e c t s i n r e l a t i o n t n t he h ige r i an s i tuat ion.I1 43

Lipsey has blamed t h e managerial incompetence of t h e

inc?ip,enous i n d u s t r i a l i s t s arid managers on t h e Colonjal

mc.sters . He says:

The h e r i t a g e of a colonialsystem d id not give t h e

l o c a l population t h e o;jportunity t o develop; because

managerial p o s i t i o n s of i n d u s t r i e s a r e awarded on t h e

b a s i s of family, s t z t u s , o r p o l i t i c a l pzitronage ins tead

~f t r a i n i n g , experience and s k i l l ; t h e exis tence of

a t t i t u d e s (among workers) t h a t d o not favour e f f e c t i v e

ond e f f i c i e n t organisa t ion of productive a c t i v i t i e s f o r

maximum output and wealth c rea t ion and absence of

t h e required quant i ty and q u a l i t y of education and

t r a i n i n g . 44

The problem of e f f e c t i v e and e f f i c i e n t production

rtxnagement is s t i l l plaguing our manufacturing i n d u s t r i e s .

There i s v i r t u a l l y s c a r c i t y of every t h i n g i n Nigeria.

2.2.4 SHORTAGE OF INilUSTRIAL 1GJdF'OWEI-I

I n t h e e a r l y 1960s one of t h e major problems t h a t

conf'rcnted personnel managers i n n'igeria was t h e I1paucity

of q u a l i f i e d manpower i n tile countryt8lc5 The problem of

rmq!ower has been the concern of every government of Nigeria

id1ether c i v i l i a n o r m i l i t a r y . This concern l e d t o t h e

cs ia t l i shment of the National Manpower Boarduto advise on ways

.md means of improving on t h e manpcwer s i t u a t i o n i n t h e

co~ ln t ry . '1 46 When t h e f i r c t Kat ional Development Plan 1952-68

b.;.tls launched i n 1962 both Nir.erian and non-Nigerians

en te r t a ined t h e f e a r t h c t t h e g r e a t e s t impediment t o i t s

successfu l implementatiot? wo~rld be "ne i ther c a p i t a l nor

f c re ign a i d but manpower. ;;47

Llthough t h e r e i s a prc;.;lem of unemployment i n

i , i ;eria, e s p e c i a l l y graduate unemployment t h e r e i s s t i l l

2 mar,r.ower problem i n t h e country but of a d i f f e r e n t

dimension. It i s no lonper z problem of shortage of manpower

' ~ u t shortage of t h e r i g h t tyl-.e and q u a l i t y . The problem

i l i th the present unemployment manpower i s t h a t many of them

::know what t o dolt but do not,"know how t o do it.''

firm saceleratlag %he inorears in real wealltk anb 2 - e

w i t h o u t a wasteful use of its resource^,^ 48

shor tage of i n d u s t r i a l manpower and the relative unattractive-

nesq of aenufactu~$ng to indigenous businessmen.

kilthaugh nour supply of humarl resources is BigH and

dcve1opment.n 49 The emphasi9 of our manpower dex$b~ment

i%Y ' QW industrial sector shcnild be on " the development

of adequate skills and competence i n t h e applicat ion and

p r s c t i c e of . this knowledge , I t 50

2.2.5 .- LEADFPSHIP .- 51

The. type of p o l i t i c a l leadership a country has . . . .

determine? t o some extent t h s type and rate of devcl6p&'ri.t

of t h a t c o ~ n t r ~ , Leadership is a problem f a t i n g %he

I n d u s t r i a l i z a t i o n i n a s ense of t h e i n t r o d u c t i o n of

k r g e - s c a l e i n d u s t i r e s r e q u i r e s among o t h e r t h i n g s a

&voted l e a d e r s h i p . It must be a b l e and w i l l i n g f t t o

f,?ce s e t backs of f o r e i g n manupi la to rs and t h e i r l o c a l

c o l l a b o r a t o r s who d o n ' t want Third lirorld e s p e c i a l l y

x f r i c a n Coun t r i e s t o i n d u s t r i a l i s e . " Laws and p o l i c i e s t h a t

tlx't promote i n d u s t r i a l i z a t i o n " e s p e c i a l l y from t h e ang le of

irdi[;enous techonology:~ ate formulated by t h e l e a d e r s h i p ,

TI;(: 2 h i r d hor ld c o u n t r i t s no t eab ly Af r i can c o u n t r i e s s u f f e r

f rom a c u t e c a p i t a l sho r t age s i n c e t h e y would l i k e t o

i n d u s t r i a l i s e t o c r e a t e employment o p p o r t u n i t i e s and i n c r e a s e

t h e L t a t e ' s revenue a n d t h e r e q u i r e d c a p i t a l cannot be

::.cnerated i n t e r n a l l y t h e c o u n t r i c s seek loans from t h e L

dcvelcped c o u n t r i e s , t h e W r l d Bank and t h e 1n tc rna t io r :a l

Kouet?ry Fund (IMF). Usual ly t h e l oans a r e ob ta ined wi th

s t r i n g s a t t a c h e d t o them. Consequently our l e a d e r s

mr:y riot be a b l e t o t a k e ce r ta . in d e c i s i o n s wi thout c l e a r a n c e

f r c m Eonn, London, P a r i s , Tokyo o r Washington. Some of t h e

C~ec i s ions may be d e t r i m e n t a l t o t h e deb to r coun t ry ' s economic

j n t e r e s t . For i n s t a n c e ;

;,. .. Our people have shown t h a t bread can be made from cyssava , beer from l ~ c - 1 meiz . o r sorghum, and $ b ~ b y milk from Soy-Cgi. But o r e ign i n t e r e s t s 2nd t h t . i r 1 c -1 g u i s l i n g s c r e - s t i l l working t o block extcnsivt? commerc ia l i sa t ion of these . "

k weak and undevoted leg!.dership i n a developing

c u n t r y poses a s a t h r e a t t o r a p i d i n d u s t r i a l i z a t i o n of

suci? a coun t ry , some 1 i . a d . e ~ of Th i rd World 'na t ions l i k e

t h e i r c o l o n i a l masters have n o t l a i d any founda t ion f o r

t h e i n d u s t r i a l i z a t i o n of t h e i r c o u n t r i e s whi le o t h e r s "have

not been a b l e t o p r e s e n t t h e i r c o u n t r i e s w i th e f f e c t i v e

i n d u s t r i a l i s a t i o n p o l i c i e s and plan." These are impediments

t o i n d u s t r i a l i z a t i o n i n t h e s e states.

2.2.6 h N D TENURE SYSTmi 7

1-nother problem m i l i t a t i n g a g a i n s t i n d u s t r i a l i z a t i o n

i n developing c o u n t r i e s i s t h e problem of l and t e n u r e system.

1r-i P . iper ia t h e Obasan jo k d m i n i s t r a t i o n sought t o s o l v e

%he ' :acute problems over l and a c q u i s i t i o n , mostly as a

r e s u l t of t h e ope ra t i on of t h e Land Use Decree." 52

The Decree which v e s t s t h e c o n t r c l of a l l l ands i n t h e hands

o f t h e S t a t e Governments t o be h e l d i n t r u s t f o r t h e

Fede rc l Government r ecogn i se s t h e t r a d i t i o n a l r i g h t s of t h e

u s e r s over l a n d a l r e a d y occupied o r developed. 53 Or1 t h e o t h e r hand in t h c r u r a l a r e a s , t h e Decree t r a n s f e r s

i .hu ~ ; a l l o c a t i v e powers over cndevelop land" from t r a d i t i o n a l

rin undeveloped land11 i s sub; ec t t c ) many i n t e r p r e t a t i o n s and

t ; l i s i s a problem n o t . i n l y t o t h e a l l o c a t i n g a u t h o r i t y bu t

~ . l s o t o t h e i n d u s t r i a l i s t . n t h e urban a r e a s i n t h e

n ~ r - t h e r n p a r t s of t h e c o u n t r / i n c l u d i n g Becue s t a t e t h e

..:ccree seems t o have achievecl i t s purpose bu t i n t h e r u r a l

a r e a s heavy comnensation a w a i t s any i n d u s t r i a l i s t who want

t c a c q u i r e a p i e c e of l and f n r an i n d u s t r i a l p r o j e c t .

I n t h e southern p a r t of t h e country t h e p o s i t i o n

appears riot t o have changed f o r t h e b e t t e r . Cost of land

2.cquisit ion f o r an i n d u s t r i a l p r o j e c t i s q u i t e high and

i n scme a r e a s p roh ib i t ive . Many of t h e c r i t i c s of t h e Decree

:;have even c a l l e d f o r i t s abrogat ion because it has

zccording t o them, compounded t h e ~ rob le rn of land a c q u i s i t i o n

~ v c n f o r la rce-sca le farminf:. 55

2.2.7 FCI-ITICS OF INIXJSTX~LL LC;CI,TIONS -W

Kwolise says "There i s p o l i t i c s of i n d u s t r i a l loca t ions

i n Third World na t ions" 56 The p r i n c i p l e s of economics

rugzrding t h e loca t ion of an i n d u s t r i a l p r o j e c t i s

usuzl ly overlooked when n decis ion t o e s t a b l i s h an indus t ry

i s tehen by p r i v a t e ind iv idua l , /an organiza t ion , government

or Its agencies. The problem becomes "where w i l l it be

57 hwolise has argued t h c t government may s i t e an

i n any loca t ion sourd eccncmic reasons notwith-

on t h e following grc,unds:

t o promote national- un i ty through t h e i n t e g r a t i o n

of t h e economy by rmking i n d u s t r i e s dependent on

c e r t a i n raw w l t e r i a l s from a sec t ion of t h e

ccu 'n t ry to be loca ted a t another sec t ion .

t h e p o l i t i c a l goal nsy a l s o be t o " forcen people

t o move away from c - r t a i n a r e a s and " s e t t l e f 1 i n

o ther a reas .

The weapon Government uses frequently to achiem

t h i s ob jec t ive i s t h e ''Locution ApprovalI1 which an

i n d u s t r i a l i s t m u s t ob ta in from t h e Federa l ?J in is te r of

Inclustries. 58

'#The r e a l p o l i t i c s l i e s i n t h e loca t ion of government

i r idus t r ies where a p o l i t i c i a n ( s o l d i e r or c i v i l i a n ) wil want

8 p r t i c u l a r indus t ry t o be loca ted i n h i s f a t h e r ' s

v i l h g c . Not only t h i s , p o l i t i c a l inf luence of a powerful

;?roup i n government may inf luence t h e loca t ion o f an

irifiustry out of t h e place d i c t a t e d by economic '

cuns idera t ions . It 59 These appear t o expla in why no s t e e l

i>rbc,jcct i s located i n Enugu (Lnambra s t a t e ) o r i n Owukpa

or Okaba ( ~ e n u e s t a t e ) w k r e coa l i s being mined.

The Government pol icy on i n d u s t r i a l l o c a t i o n

s t r i t e s t h a t i n d u s t r i e s sponsored by t h e Federal and S t a t e

Gnvurnments w i l l , a s a matter of po l i cy be s i t e d purely

on economic cons idera t ions but t h e government i s quick

tc ~tdd t h a t "a measure of aciministrative d iscr iminat ion

w i l l 9 however, be allowed i n fzvour of l e s s i n d u s t r i a l l y

develcped towns and d i s t r i c t : ; when considering t h e marginal

l e v c l s of s e l e c t i v e incer:tivi.s. 60 Igbani sees t h i s pol icy

i s Fin attempt by t h e Covernmcnt t o so lve t h e problem

of uneven i n d u s t r i a l deve1opr;ient i n t h e country. 6 1

2.2,8 SLOW IMPLEMENTATI~N OF GCVEHNMENT INDUSTRIAL

POLICIES AND PFIOGFGMMES

The publ ic s e c t o r manufacturing p r o j e c t s a r e the . .r . . N

foundation on which t h e manufacturing s e c t o r of t h e

economy is b u i l t . "Delay i n implementing t h e publ ic

s e c t o r programme the re fo re , o f t e n l eads t o delays i n

t h e implementation of o the r p r c j e c t s - n 62

The de lay of t h e s t e e l complex a t Ajeokuta, t h e L lqu id i f i ed

Nztural ms p r o j e c t have a l l delayed t h e take-off of

inciustr ies dependent on them f o r t h e i r raw mater ia ls .

"The r e s u l t is that. . . t h e petroleum s e c t o r could n o t

supply t h e petro-chemical inpu t s needed by Industries,

end t h e iron and s t e e l bas ic indus t ry is no t developed

encugh t o s u s t a i n t h e i n d u s t r i a l needs." 63 \

2.2.9 POLITICAL INSTABILITY

F o l i t i c a l s t a b i l i t y is as important as phystcal

i n f r a s t r u c t u r e f o r i n d u s t r i a l development of a country,

The r a t e of change of Governrent i n Nigeria between

January, 1966 and August, 1965 has become f r igh ten ing

even ignoring attempted coup d l e t a t i n between t h e

changes. The Nigerian experjence has f ea tu red three

kinds of changes of Government. 64

( a ) C i v i l i a n t o M i l i t a r y - 1966 and 1983

(b) M i l i t a r y t o C i v i l i a n - 1979

( c ) M i l i t a r y t o N i l i t a r y - 1966, 1975 and 1985,

"... t h e environment necessary t o i n i t i a t e and

s u s t a i n new a c t i v i t y and t h e implementation'of new

capital investment requires political stability,

good public administration and law and order within the

community, that is, rule of law and freedom from individual

harrassement and security of property." 65

~ w a n k w o ~ ~ observes that the violent changes in

government and the massive retirements and retrenahments

in the public service since 1975 have created what he calls

"the instability and insecurity psychosis in the management

cf the economy."

He advises that conscious policy should be made to

restcre confidence and security in the public service.

Expressing a similat view but from the point of

view r:f foreign investors, Kaybor and Schultzd5 interprete

ths phrase "favourable pclitical climate" to mean lla

friendly government with a traditional policy of non-

expropriation of foreign companies and a reputation for

fair dealings with foreign irivestors. To most investors

poli.f;ical stability means strwng government, sound public

aclministration and freedoifi f:-om fear of internal coups and

revolution."

In any.~o~ntry where there is political instability,

industrialization is likely to be hindred for both local

and f6reign inWstors are no3 sure if their life, property

and investment will be secured.

2.2 .A0 R A W MATERIALS, PLANT AND MACHINERY AND EdUIPMENT

On t h e r.ttq'nrnert of p o l i t i c a l independence i n

Cctober, q960, t h e country embarked onwthe domestic

production of m~nuf,ct;urec' goods f o r t h e demestic

market. '1 66 The pol icy makers and t h e planners of t h e

; ' laudable import s u b s t i t u t i o n p o l i c y never asked where

the raw mate r i a l s , t h e inter-mediate goods would

cc:rne from; and we indigenised t h e ownership of t h e

i n d u s t r i e s while leaving con t ro l e s s e n t i a l l y i n t h e hands of

t h e fore ign minori ty shareho1ders.n 67 The r e s u l t was t h e

emergence of a p r i v a t e s e c t o r t h a t d id not i d e n t i f y i t s e l f

with t h e a s p i r a t i o n s of t h e country. The i n d u s t r i e s depend

heavi ly on imported raw mate r i a l s p l a n t s and machinery,

equimen spare p a r t s , and t e c h n i c a l know-how, maJority

of which were e s t ab l i shed during t h e period of o i l boom.

Since t h e country had huge e x t e r n a l reserves anything could

be imported "ranging from corrputer t o toothpick."

The procurement of r s w ma te r i a l s and c a p i t a l goods f o r t h e

i n d u s t r i e s was then no t a problem a t a l l . Ekukinam has

s u c c i n t l y put it, VThe near l:uadrupling of o i l p r i c e from

1973 t o A975 supplied Migeri:l with undreamt revenue and

ex te rna l reserves . This pro\-ided t h e under pinning f o r

the regime of l i b e r a l importztion of c a p i t a l and

consumer goods." 68

The po l i cy makers znd th2 entrepreneurs never thought

f o r 2 moment t h a t t h e country would f a l l from f i n a n c i a l

grzce t o g rass .

They were op t imis t i c t h a t a s long a s t h e r e was o i l i n

Nigeria , t h e r e would always be huge e x t e r n a l r e se rves

t h a t would f a c i l i t a t e t h e importation of c a p i t a l goods

and raw mate r i a l s f o r t h e running of t h e i n d u s t r i e s .

It has now dawned on every Nigerkanthat Itno condi t ions is

permanent. fl

The near t o t a l dependence of our i n d u s t r i e s on

imported raw mate r i a l s c a p i t a l goods and t e c h n i c a l

know-how does not augur wel l f o r t h e r ap id i n d u s t r i a l

development i n Nigeria. The Raw Mater ia ls Research Council

r e c e n t l y s e t up by t h e Federal Government is a s t e p i n

the r i g h t d i r e c t i o n . The Federal Government should ensure

t h a t research i n s t i t u t e s l i k e P r o j e c t s Development Agency

(PRGIX) should be s u f f i c i e n t l y funded t o f a b r i c a t e p l a n t s ,

machinery and equipment f o r our i n d u s t r i e s .

2 . 3 INDUSTRIALIZATION IriI'iD TECHNCLOGY

I n d iscuss ing t h e c o n s t r i a n t s t o i n d u s t r i a l

development i n Nigeria we mentioned i n passing t h e i s s u e

of technology. Technology i s so important t o t h e

i s s u e of i n d u s t r i a l i z a t i o n t : ~ a t we f e e l t h a t it deserves

a separa te treatment.

t t ~ e c h n o i ~ g y has long been regarded a s one of t h e

more important elements i n the i n d u s t r i a l i z a t i o n

process. " 69 We do f e e l t h a t t h e r e i s every reason t o

be l ieve t h a t it w i l l cont inut t o play a very important

r o l e i n t h e i n d u s t r i a l develc.pment of any countrx*

I n t h e case of developing na t ions i t s importance cannot

be overemphasized. !,Ye need modern technology t o

manufactmet1 . and maintain p l a n t s , machinery and equipment

f o r t h e manufacturing sec to r of the economy. One of t h e

major ~ r o b l e m s fac ing developing c o u n t r i e s l i k e Nigeria

i s t h e p r a c t i c a l method of acqui r ing technology which a t

present appears t o be t h e exclus ive preserve of t h e

advanced coun t r i e s .

I f Idea l ly , technology should be f r e e l y t r a n s f e r r e d

from developed coun t r i e s t o developing count r ies . I n

r e a l i t y , many b a r r i e r s and hindrances p r o h i b i t or encumber

t h e t r a n s f e r of t e c h n ~ l o g y . ~ I 70 uche7' has i d e n t i f i e d some

03 t h e r e s t r i c t i o n s usual ly s u b t l y i n s e r t e d i n t r a n s f e r

of technology agreements. Some o f them are :

1. Res t rec t ive business p r a c t i c e s i n pa ten t l i c e n s i n g

arrangments:

These include:-

R e s t r i c t i o n s r equ i r ing t h a t t h e licenser does

not con tes t t h e va3 id i ty of t h e pa ten t s involved

i n t h e l i cence and any o ther p a t e n t s of t h e

l i cence and any o ther p a t e n t s of t h e l i c e n s e r

R e s t r i c t i o n s a s t o t h e use of the sub jec t

matter of a pa tent md any unpatented know-how

under l i cence which d i r e c t l y r e l a t e s t o t h e

working of t h e p a t ~ n t once a pa ten t has expired;

R e s t r i c t i o n s on exports whether o r not proeected

by pa ten t s i n o ther markets.

Licensing and know-how arrangements:

These include:-

(a) R e s t r i c t i o n s on expor ts t o c e r t a i n markets

o r permission t o export ~ n l y t o c e r t a i n markets;

( b ) The requirement of p r i o r approval of t h e l i c e n s e r

f o r expor ts ;

( c ) R e s t r i c t i o n s on t h e l e v e l of productions

(d ) R e s t r i c t i o n s or a p roh ib i t ion on t h e use of

know-how a f t e r t h e terminat ion or expiry of t h e

c o n t r a c t i n question;

( e ) Requirement t h a t the l incesee pay r o y a l t i e s f o r

t h e e n t i r e dura t ion of t h e manufacture a product

or app l i ca t ion of t h e process involved, and there-

f o r e without any s p e c i f i c a t i o n of time.

( f ) Limitat ions on t h e scope or f i e l d of a c t i v i t y .

Trade-Mark Licensing i.rraryements:

These include:-

( a ) Requirements p roh ib i t ing o r r e s t i c t i n g exports

by t h e l i censce of goods covered by a trademark

l i c e n s i n g arrangement;

(b) t h e t y i n g of t h e supply of imports of a product

bearing a p a r t i c u l a r trademark t o t h e trademark

owner; thereby p r o h i b i t i n g imports from a t h i r d

pa r ty or a l i c ~ n s c e ;

( c ) t h e use of p ro tec t ion afforded under t h e trademark

t o r e s t r i c t a l i c e n s e e ' s a c t i v i t i e s ;

.

(d) ob l iga t ions t o use a p a r t i c u l a r trademark with

t h e know-how supplied.

4. R e s t r i c t i o n s common t o p a t e n t s , know-how and t r a d e

mark l i c e n s i n g arrangements:

These include : - ( a ) R e s t r i c t i o n s t y i n g t h e purchase of goods such

a s raw mate r i a l s and equipment t o t h e l i c e n s e r

or a person nominated by him ( f o r example,

goods used a s s t a r t i n g mate r i a l s f o r a l icensed

process and f o r purchases of p l a n t and equipment).

(b) Requirement t h a t t h e l i censee accept (SIC)

a d d i t i o n a l pa ten t s or know-how no t des i red by

t h e l i censee , a s a c ~ m d i t i o n f o r obta in ing a

l i cence and requirement o f the payment of r o y a l t i e s

f o r such pa ten t s or know-how.

( c ) Higher r o y a l t y charges on goods produced f o r

export vis-a-vis g ~ o d s f o r domestic market

( d ) Fixing of t h e pricr: or p r i c e s of a product or

products manufactuj-ed by t h e l i censee .

( e ) R e s t r i c t i o n s on o b a i n i n g p a t e n t s and know-how

o r trademarks from o the r l i c e n s e r s with regard

t o the s a l e o r manufacture of competing products.

( f ) Obligat ions t o use the d i s t r i b u t i o n channels of

t h e l i c e n s e r .

(g) Obligat ions t o comuunicate, f o r example, by way

of grant-back or otherwise, t o t h e l i c e n s e r

improvements and kqowledge acquired i n r e spec t

. . of the -king of t h e patent o r the use of t h e

l icensed know-how.

( h ) Obligat ions t o transform r o y a l t y payments o r

t e c h n i c a l know-how f e e s i n t o c a p i t a l stock.

( i ) The i n s i s t e n c e by t h e l i c e n s e r t h a t t h e law of

h i s country and/or i t s j u r i s d i c t i o n should

govern c o n t r a c t s between him and t h e l icensee .

H e advises t h a t any agreement with a fo re ign

inves to r f o r t r a n s f e r of technology should be

thcroughly screened with a view t o removing s u b t l e

r e s t r i c t i o n s before r e g i s t r a t i o n o r approval of

t h e agreement 7 2 He, however po in t s out t h a t

undoubtedly t h e r e i s a d e l i c a t e balance t o be

s t ruck between t h e d e s i r e f o r fo re ign investment

and r a p i d i n d u s t r i a l i z a t i o n on One hand t h e r e a l i t y

of an i n t e r n a l i z e d technology on t h e o ther . 73

Vehicles f o r t h e t r a n s f e r of technology include 74 (1) t r a n s f e r by imi ta t ion ;

( 2 ) c a p i t a l a t t r a c t i o n and j o i n t ventures. Others argue

t h a t technology can be s t o l e n '

Kaynor and ~ohultz c i t e T 5 Japan a s t h e most outs tanding developed

example of a country t h a t has L through imi ta t ion .

.*The country has discouraged c a p i t a l investment and j o i n t

ventures and has moved forward i n d u s t r i a l l y by means of

pa tent a c q u i s i t i o n and l i c e n s i n g arrangementseff Nigeria

should do we l l t o borrow a l e ~ ~ f from Japan i n he r search

t o develop r a p i d l y i n d u s t r i a l l y . ,

Hicks and Gullett draw attention to "some danger in assuming that the advanced technology of the industrialized countries aan be transferred abroad especially to the less developed countries. The advanced technology gennrally reflects capital- intensive and labour-saving-. devices. The developing countries of the world, in general regard small-scale and labour-intensive techonology to be more appropriate for their purposes. The cost of transfering the labour-intensive technology is lower and 'Lt helps to 76 solve the critical unemployment problem of the country."

Shonekan shares this view when he says that the

technology transferred must not be too sophisticated or

inappropriate for our needs. 77

In terms of cost Paliwoda does not buy the idea of

transfer of a general technology. He thinks it is simpler

and cheaper to transfer industry - specific oo product or process technoiogy. 78

.-.. ,.ajar hindrance to the transfer of technological

in developing countries is the consumption patterns

which influence the choice of technology. 79 .In order

that a developing country may select appropriate

technology, consumption must bc p.lanned, at least partly,

and simply projected as is so cften done." 80

8 1 The United Nations Committee on industrialization

notes with concern that developing countries tend to

invest more "in equipment and building, worker and

management training!' at the expl2nse of technology

development. They advise that the order of priority

should be inverted.

~ r u c k e r ' ~ br ings a new dimension t o t h e i s s u e of

technology and indus t ry . He says t h a t tlSornetimes t h e

knowledge t h a t de f ines t h e business may be purely

technological ." He p o i n t s out t h a t technology should not

be regarded a s t h e panacea f o r the problems of i n d u s t r i e s .

He notes t h a t t h e r e a r e many success fu l businesses i n

highly technologica l f i e l d s t h a t do not excel i n technology

but t h a t i n any case they have t o be t e c h n i c a l l y competent.

Their s t r e n g t h may l i e say, i n marketing.

!Je should not overlook one important impact technology

always has on t h e p r a c t i c e of management. "It i s an

important element i n planning, both i n t h e design of products

and se rv ices and a l s o i n t h e ways t o develop, produce,

d i s t r i b u t e and manage them." 83 Technology has always a f fec ted

t h e s t r u c t u r e of organizat ion.

2.4 STWCTUKAL ADJUSTMENT PKOBf~~MD'IE AKD II~DUSTHIALIZHTION

Abdulkadir and A jayi84 have i d e n t i f i e d t h e

s t r u c t u r a l weakness of t h e i n d u s t r i a l s e c t o r of t h e

Nigerian economy a s t h e s e c t o r ' s g r e a t e s t problem.

This weakness made it highly vulnerable t o t h e current

economic recess ion . The l inkages wi th in t h e s e e t o r

a s wel l a s t h e l inkages with t h e a g r i c u l t u r a l sector::,

a r e very weak owing t o t h e neglec t of t h e l a t t e r during

t h e o i l boom per iod when imported i n p u t s were cheaper.

This two f o l d Back of l i nkages makes t h e s e c t o r heav i ly

import dependent f o r i t s raw m a t e r i a l s i n t e rmed ia t e

products and s p a r e p a r t s .

"The i n d u s t r i a l s e c t o r became a major c a s u a l t y

of f o r e i g n exchange r a t i o n i n g through t h e import

l i c e n s i n g system. 85 It ha rd ly even g o t 25 p e r c e n t of i t s

need and t h i s r e s u l t e d i n l a r g e - s c a l e under-capacity

u t i l i s a t i o n t h a t dropped t o 30-40 p e r c e n t s i n c e 1983 86

with t h e c o l l a p s e of o i l p r i c e i n t h e world market

about t h e middle of 1981 t h e h i g e r i a n economy rece ived

some severe e x t e r n a l shocks. Foreign exchange r e s e r v e s

which s tood a t U . S $8.50 b i l l i o n by t h e end of May, 1981

dec l ined t o about U.S $2.85 b i l l i o n by December, 1981. 87

The s i t u a t i o n of t h e Niger ian economy l e d t h e Shagar i

Adminis t ra t ion t o enac t t h e Economic s t a b i l i s a t i o n Act

i n A p r i l , 1982 which int roduced s t r i n g e n t exchange and

t r a d e c o n t r o l measures. The measures l a t e r proved

i n e f f e c t i v e and by t h e end of t h e yea r t h e r e w a s no

s i g n i f i c a n t improvement i n t.he f o r e i g n exchange r e s e r v e

ar:u i n t h e economy. On t h e whole al.1 t h e known f i s c a l

and monetary measures p u t i n t o ope ra t ion proved

inadequatewto d e a l wi th t h e :?undamental economic and

f i n a n c i a l problems confront i i lg t h e c0'Jntry. ' 9 88

The loan of U.S. $2.50 b i l l i o n sought from t h e

I a t e r n a t i o n a l Xonetary Fund (IMF) by t h e Shagari

Administration t o salvage t h e economy did not m a t e r i a l i s e

Sefore t h e overthrow of t h e Administration i n December,

1963. I n August, 1985, t h e M i l i t a r y Government changed

hands.

The i s s u e of IMF loan was s t i l l not resolved.

To t ake t h e loan or not was the quest ion. On assumption

o f o f f i c e President Ibrnhin: Babangida s e t up a panel

which organised debates t o a s c e r t a i n t h e view of Nigerians

hbout t h e loan, Eventually t h e major i ty of Nigerians

r e j e c t e d t h e loan and by impl ica t ion were prepared t o

make s a c r i f i c e s i n order t o revamp t h e economy,

Fres ident Babangida i n June, 1986 announced t h e

in t roduct ion of an economic blue-print chr i s tened

'n:;tructural Adjustment Frogrammen (SAP f o r s h o r t ) which

was expected t o operate f o r t w o years , t h a t i s , from

J u l y , 1986 t o June, 1988. The cornerstone of t h e

programme i s t h e second-t ier "oreign Exchange Market

( S F Z ~ ) whose main ob jec t ives w e 89

1 , The'determination of a r e a l i s t i c exchange r a t e

f o r t h e n a i r a through t h e operat ion of market

f o r c e s of supply and demand;

2, The provis ion of a forum f o r t h e r a t i o n a l

a l l o c a t i o n of scarce fore ign exchange resources.

The c a r d i n a l o b j e c t i v e of SAP accord ing t o

Abdulkadir and Ajay i I f i s t h e achievement of economic

s e l f - r e l i a n c e and economic e f f i c i e n c y through t h e

minimizat ion of government c o n t r o l s . 11 90 However, t h e

Government has adopted SFEM now FED1 a s an ins t rument of

SdE t o c o r r e c t t h e economic d i s t o r t i o n s c r e a t e d by t h e

o i l boom. Although FFJI has f a c i l i t a t e d acces s t o t h e

f o r e i g n exchange r e q u i r e d t o import p l a n t s and machinery,

raw m a t e r i a l s , i n t e rmed ia t e goods and s p a r e p a r t s , it

h ~ s c r e a t e d flsome c r i t i c a l problemstf e s p e c i a l l y f o r

the i n d u s t r i a l s e c t o r o f t h e economy. The exchange r a t e

ha s i nc rea sed about f i v e t imes t h e c o s t of imported i n p u t s .

(The exchange r a t e a s a t 22nd August, I988 was g4.6204 t o

one U.S do l l e r ) ? ' Th is means l a r g e working c a p i t a l and

corresponding h igh c o s t of p roduc t ion r e s u l t i n g i n h igh

-qrsoduct p r i c e s , FYI? h a s a l s o caused d e c l i n e of e f f e c t i v e

derllnnd f o r consumer goodsilin response t o f a l l i n g r e a l

income wi th t h e r e s u l t t h a t most manufacturers have problems

of d i spos ing of t h e i r ou tpu t . 292 The problem of t h e

marufac tur ing s e c t o r was compounded by t h e " t r ade

l i b e r a l i z a t i o n component of t he S t r u c t u r a l Adjustment

hogramme whereby l i t t l e p r o t e c t i o n has been provided t o

l o c a l i n d u s t r i e s a g a i n s t dxmping cheap imports from t h e low-

c o s t h i g h l y i n d u s t r i a l i z e d Countr ies , I f 93

Consequent upon t h e r e p r e s e n t a t i o n by t h e Manufacturers

i i s soc i a t i on of Niger ia ( P ~ A N ) on t h e i s s u e t h e Fede ra l

Government has c a r r i e d ou t n review of t h e t a r i f f

s t r u c t u r e i n favour of l o c a l i n d u s t r i e s .

However, t h e Minis ter of I n d u s t r i e s s a i d r e c e n t l y t h a t

the ~ a ~ f f f Review Board was reviewing t h e d i f f i c u l t i e s

and anomalies encountered during t h e customs and excise

t a r i f f decree. 94

A survey of some manufacturing companies by t h e

Mnnufacturers Association of IVigeriag5 i n 1987 indica ted

t h a t :'average capaci ty u t i l i z a t i o n s tands a t 25 per cen t

as aga ins t 30 per cen t i n 1986.11 The r e p o r t a l s o showed

t h a t i n d u s t r i a l c lo su res , e s p e c i a l l y among t h e small-scale

i c d u s t r i e s a s wel l a s r c d ~ c t i o n i n working s h i f t s were

r.::opant then.

Abdulkadir and Ajayig6 see very high prospects f o r

i n d u s t r i a l i z a t i o n under SAi? provided t h e SAP environment

i s allowed t o remain long enough. Th.ey have l ikened i n d u s t r i -

a l i z a t i o n under t h e S t r u c t u r a l ~ d j u s t m e n t Programme t o a

wcman i n t r a v a i l who r e j o i c e s a f t e r t h e expected baby

i s born. They expect t h a t a f t e r t h e p a i n f u l t r a n s i t i o n a l

ywiriod, and t h e expected i n d l ~ s t r i a l baby i s born manufac-

t ~ e r e s would r e j o i c e a s t h e progress of a wel l-s t ructured

i n d u s t r i a l s e c t o r would have become steady and smooth.

2.5 INDUSTRIALIZATION AND T% ENVIRONMENT

The experiences of t h e i n d u s t r i a l i z e d and

economically developed count r ies have generated t h e present

concern w i t h t h e hazards t o c:nvironment associa ted

with economic development 96 Important among these

problems a re . 97

( i ) The increase i n the number of endemic

and epidemic d isease c a r r i e r and p e s t s

( i i ) The exhaustion of n a t u r a l resources

( i i i ) The degradation of the environment through

t h e widespread use of chemicals a l i e n t o n a t u r a l

processes.

Although environmental problems have not reached an

alarming s t age i n developing coun t r i e s , llthese c ~ u n t r i e s

lmn-L t o avoid t h e cummulative negative e f f e c t s of

develorment a s witnessed i n many i n d u s t r i a l soc ie t i e s . " 98

l ' iger ia should t r y t o avoid t h e experience o f t h e I t a l i a n

Corr4pany which recen t ly exported t o x i c waste t o Koko i n

Belldel S t a t e f o r apparent ly being unable t o dispose

of it i n I t a l y . Now t h a t t h e consignments of the t o x i c

wgste have been " repa t r i a t ed . i t o I t a l y , '!let us not miss

t h e l e s sons of t h e sa,ga.lf 99

The Governments should take s t e p s t o con t ro l

p c l l u t i o n a t Federal , S t a t e and l o c a l government l e v e l s

e s p e c i a l l y a t urban cen t res where, say, cement companies,

breweries, f e r t i l i z e r coaganies m e loca ted i n r e s i d e n t i a l

arcas . Despite t h e f a c t t h a t t h e con t ro l of p o l l u t i o n

i s a s o c i a l r -esponsibl i ty of business i n t h e United S t a t e s

oi' America, t h e r e a r e laws a t Federal , S t a t e and l o c a l

l e v e l s t o con t ro l po l lu t ion . loo ~ c c o r d i n g t o Hicks and

Gul le t , '01 t h e p r i n c i p a l overseer of t h e p o l l u t i o n laws

i s t h e Environmental Fro tec t ion Agency; t h e

adminis t ra tor of which develops a i r q u a l i t y Standards and

ensures compliance.

h h e r a r e a s of l e g i s l a t e d p o l l u t i o n c o n t r o l i n t h e

U.S.A. i nc lude no i se , s o l i d wastes and r a d i o a c t i v e m a t e r i a l s .

Eusinesses must meet t h e s t anda rds s e t i n t h e s e a r e a s o r

f a c e l e g a l p e n a l t i e s and unfavourable p u b l i c i t y .

~ w a k e s s i e n ' ~ ' f e e l s very s t r o n g l y about t h e need t o

p lan now f o r p o l l u t i o n c o n t r o l i n Niger ia . H e d i s a g r e e s

wi th t hose who may t h i n k t h a t t h e i s s u e s of p o l l u t i o n

c m t r o l may no t be r e l e v a n t a t our p re sen t s t a g e of

i n d u s t r i a l development and main ta ins t h a t t h e i s s u e s a r e

very r e l e v a n t i n t h e Niger ian s i t u a t i o n . He draws a t t e n t i o n

t o t h e u p h i l l t a s k being experienced by some i n d u s t r i a l i z e d

n a t i o n s who ignored it when they were developing t h e i r

technology and planning t h e i r i n d u s t r i a l development.

Ye must t h e r e f o r e , a t t h i s e a r l y s t a g e , bu i ld i n t o our

technology development p rocesses , t h e a p p r o p r i a t e measures

f o r d e a l i n g wi th t h e s e issues .1f 703

The United Nations I n d u s t r i a l Development Organiza t ion

(UKIDC) expec t s t h a t ; ;develcping Count r ies will i nco rpo ra t e

environmental c o n s i d e r a t i o m i n t h e i r programmes f o r

i ndus t r i a l i za t ion .1 f 104

2.6 THE STRATEGY OF INDUSTRIAL DZVELOPMENT

There a r e many s t r a t e g i e s of i n d u s t r i a l i z a t i o n

which may be adopted by deveLoping c o u n t r i e s . Oyejide 705

hos i d e n t i f i e d some of them.

They include :

( 1 ) IfInward Looking1 This s t r a t e g y involves domestic

?reduction of manufactured goods f o r t h e home market.

This "inward looking" s t r a t e g y of i n d u s t r i a l i z a t i o n which

i s based on import s u b s t i t u t i o n has been popular i n

most of t h e developing coun t r i e s i n the 1960s.

"Its popu la r i ty l i e s i n t h e f a c t t h a t it involves a

process of i n d u s t r i a l i z a t i o n which i s t a i l o r e d t o t h e

poter j t ia l a s wel l a s know requirements of a ready-made

k e . . A t t h e i n i t i a l s t a g e import-subst i tut ion

s t r a t e g y i s "l imited t o the replacement of imports of

non-durable consumer goods which can be produced with

unski l led and semi-skil led labour and Z i t t l e or no

app l i ca t ion of advanced technologica l methods."

Since t h e B r i t i s h Colonial masters d i d not l a y any

s o l i d foundation f o r i n d u s t r i a l i z a t i o n of Nigeria ,

I@ani Io6 argues, f o r the country the re fo re , import

subs t i tmut ion became a very a t t r a c t i b e s t r a t e g y f o r

i n d u s t r i a l i z a t i o n immediately a f t e r t h e independence.

According t o him, t h e r e has been a growing disenchament with

t h e import s u b s t i t u t i o n s t r a t e g y based on two major

arguements,

(i) I t i s argued t h a t many of t h e i n d u s t r i e s perform

only t h e " f i n a l touchesiY of assembling the almost

Tinished i n d u s t r i a l imports i n t o the f i n a l products and

t h a t t h e g o ~ l of proceeding t o i n d u s t r i a l i s e downwards

'the u l t i m a t e product ion of i n t e rmed ia t e p roduc ts and

c a p i t a l goods i s s t i l l f a r from being r e a l i s e d .

( i i ) It i s po in ted out t h a t p r a c t i c a l l y a l l our

machinery and equipment a r e imported; t h e s p a r e p a r t s

wi th which t h e y a r e maintained a r e imported; more o f t e n

thari riot t h e s k i l l e d labour f o r t h e ope ra t ion and

maitltenance of our p l a n t s and machinery i s a l s o imported,

Techmologies a r e ob ta ined on l i c e n c e and we pay e x h o r b i t a n t l y

f o r them. The above arguments show t h a t our i n d u s t r i e s exchange f o r

i n s t e a d of ea rn ing f o r e i g L t h e count ry c o n s t i t u t e a

seve re d r a i n on t h e c o a n t r y ' s f o r e i g n r e se rves .

2. Another s t r a t e g y f o r i n d u s t r i a l development

i d e n t i f i e d by Oyejide i s what he c a l l s "Outward-looking."

This c o n s i s t s of t h e domestic p roduc t ion of manufactured

goods f o r expor t s . He r ecogn i se s t h e d i f f i c u l t y

a s s o c i a t e d wi th t h i s approach. I n h i s view it r e q u i r e s

any of' combination of t h e fol lowing:

p r o v i s i o n of generous expor t s u b s i d i e s ; t h e e s t ab l i shmen t

of a net-work of expor t markets and t h e e x i s t e n c e of

favourab le c ~ m m e r c i a l p o l i c i c s i n t h e advanced i n d u s t r i a l

c o u n t r i e s which o f t en cannot be taken f o r g ran ted .

3. Another s t r a t e g y " t o g ive a vigorous push t o t h e

p reces s of i n d u s t r i a l i z a t i o n a f t e r 195711 i s t h e use

of i n d u s t r i a l i n c e n t i v e s . The Government adopted and

made more generous and windened t h e scope of t h e system of

of i n d u s t r i a l incen t ives introduced by t h e c o l o n i a l

d~overnment i n 1952. Now, t h e Federal Government s Cl

s p e c i a l incent ives t o promoters of p r o j e c t s i n p r i o r i t y

108 sub-sectors of the economy include :-

(a) Income Tax Xel ie f s

( b ) Accelerated Depreciation Allowance

( c ) Approved S t a t u s

( d) Customs Drawback-Scheme

Ron-financial a i d s t o indus t ry include easy and

a c q u i s i t i o n and i n d u s t r i a l e s t a t e s . Non-financial incerrtives

offered by t h e Benue S t a t e Government log t o promoters of

i n d u s t r i a l p r o j e c t s include t h e provis ion of i n d u s t r i a l

p l o t s , i n d u s t r i a l e s t a t e s and f e a s i b i l i t y study an any

p r o j e c t .

However, Hakam a s s e r t s t h a t even when these incent ives

w e r e made mcre generous and appl ied with g r e a t e r enthusiasm

a s t e r 1957, t h e a v a i l a b l e evidence i n d i c a t e s t h a t they have

not c o n s t i t u t e d a p a r t i c u l a r l y s t rong c a t a l y s t f o r

i n d u s t r i a l development. I10

1 . T a r i f f pro tec t ion: OyeJide says t h a t t h e use of t h i s

pol icy instrument i s expected t o reduce or i n some cases

e l i i l~ ina te completely competition between fo re ign and l o c a l

products through t h e reduct ion or p roh ib i t ion of imports.

ifThe intended r e s u l t i s t o provide l o c a l i n d u s t r i e s with an

assured market o r provide l o c a l manufacturers with dec i s ive

cos t advantages over fo re ign p r a d u c e r ~ . ~ ~ 111

The expectat ion t h a t Nigeria with a population of

about 100 mi l l ion people a t t h e mement should have

yrovided a l a r g e market f o r l o c a l l l y manufactured goods

has however been dashed because of t h e craze of t h e

average k ige r i an f o r imported goods." 112

FeterKilibydoes not see t a r i f f p ro tec t ion as a

s t ragegy f o r i n d u s t r i a l development but a s a means t o

raise pub l i c revenue. 173

"It i s genera l ly assumed t h a t expor ters of manufactures

t o Kigeria w i l l be forced t o e s t a b l i s h l o c a l manufacturing

establ ishments i n t h e country as a r e s u l t of t h e t a r i f f wal l ,

t h a t has shut t h e Nigerian ga tes aga ins t t h e i r products

:produced abroad. 114

Countries l i k e Braz i l , Mexico, Argentina and Chile , and Japan

and HongKorgin t h e past:; have achieved sucess i n t h a t

d i r e c t i o n by adopting t h i s p r o t e c t i o n i e s t a p p r o a ~ h e d . ~ ~ 115

The use of t h e t a r i f f s t r u c t u r e a s a means of

p ro tec t ing l o c a l i n d u s t r i e s received i t s f i r s t o f f i c i a l

s a ~ c t i o n i n t h e sovereign Eudget Speech of 1961 i n which

the? Federal Minis ter of Finalice s t a t e d simply t h a t :

l i the governments are re;olved t o encourage t h e growth of

l c o a l indus t ry by providing newly es t ab l i shed

i n d u s t r i e s with a degree of p ro tec t ion a t l e a s t

u n t i l they a r e s t rong enough t o s tand on t h e i r own

f e e t . 116

k c o r d i n g t o Oyejide t h e r e a f t e r an upward t r e n d i n

t a r i f f r a t e s emerged as t h e t a r i f f s t r u c t u r e was

i n c r e a s i n g l y manipulated t o c r e a t e a p r o t e c t i v e t a r i f f

~ 2 . 1 1 behind which domestic manufacturing i n d u s t r i e s

could grow. 117

2.7 IhDUSTRIALIZATION I L ~ D ECCNOMIC DEVELOPPIENT

Af te r t h e Second World War most developing n a t i o n s

e w r g e d from a long c o l o n i a l e r a w i th g r e a t a s p i r a t i o n s

I 18 for economic development. "They pinned t h e i r hopes on

i n d u s t r y f o r a c c e l e r a t e d growth i n income which would

lend t o s u r p l u s t h a t would f u r t h e r s t i m 3 l a t e economic

development. 11 ' The United Nations I n d u s t r i a l Development

0 r ;pn iza t ion a s s e r t s t h a t i n d u s t r i a l i z a t i o n i s no t only a

way t o i n c r e a s e output o r n a t i o n a l income it is a l s o a

means of i n t roduc ing modern technology i n t o t h e economy

and @f changing a t t i t u d e s towards development and towards

a w ~ i y of l i f e . 120

bwolise 121 expres s ing a s i m i l a r view argues t h a t

ind lc l s t r i a l i za t ion is h igh ly c les i rable i n every modern s t a t e

-because it m u l t i p l i e s i n geometric p rogress ion t h e

revenue of t h e g o ~ e r n r n e n t . ~ ~ I n d u s t r i a l i z a t i o n does n o t

or.ly improve s t anda rds of l i v i n g bu t a l s o prov ides huge

expor t sourscd f o r e i g n exchange earn ings .

Ronald Robinson seems t o have h i t t h e n a i l on t h e head

why developing c o u n t r i e s should seek t o i n d u s t r i a l i s e when

he s a i d :

f< 29

Indus t ry g l i t t e r s wi th p m i s e Noth1n.g else seems 5% t o hold out much hope of f u l g i l l i n g the expectatienS- ..t $2 .'i

of new nat ional ism, winning ecenomic i n d 4 ~ ~ n d e n ~ e and .-,

r a i s i n g average p r o s p e r i t y dramatieally. ...% .. - &-a'> , . 2>

.* ' I

The above view expressed by Robinson seems t o , P..d . :\

summarise t h e mood of t h e de legates from developing

coun t r i e s i n a conference i n Camb~idge i n 19%.

Ukwu I. U k w ~ argues t h a t *he obje~tives o f industria-

l i z a t i o n mus t go beyong t h e conventional ob jec t ives of

increas ing n a t i o n a l income, s t a b i l i z i n g fore ign exchange

b:= lance , securing f u l l e r employment and expanding t h e

market f o r l o c a l r a w mater ia l s .

The s t r a t e g i c importance of i n d u s t r i a l i z a t i o n l i e s

i n i t s being t h e means of i n t e r n a l i s i n g modern technology

of equiping developing coun t r i e s with t o o l s t h e t o o l s f o r

optirnising the use of t h e i r resources f o r t h e s a t i s f a c t i o n

of t h e needs of t h e i r populat ions, 123

Gyejide i s of the opinion t h a t i n d u s t r i a l i z a t i o n

should not be he ld a s t h e on'y panacea f o r p reva i l ing

backwards but t h a t it i s a g r e a t c a t a l y s t , 1 24

The b e n e f i t s of i n d u s t r i a l i z a t i o n out l ined above

2ccru.e only t o na t ions t h a t 'iiave pa id s e r i o u s p r a t i c a l

a Lterltion t o i n d u s t r i a l i z a t i ' m .

THE ROLE OF CIOVEilN'Y.Ii2NT 1 ;V 1NI;USYRIAL DEVELOF'MENT

f t i g a - i a opera tes mixed economy which c o n s i s t s of two

s x t o r s , t h a t i s , t h e publ ic and t h e p r i v a t e sec to r s .

Sec t ion 16 of t h e Const i tu t ion of t h e Federal . Republic of Viger ia , 1979, vi?sts t h e con t ro l of the

n a t i o n a l economy i n t h e S ta te . It i s un ive r sa l ly accepted

t h a t modern government which i s an organiazat ion

element of t h e S t a t e p a r t i c i p a t s a c t i v e l y i n economic

a c t i v i t i e s of t h e c:;un-hy. This p a r t i c i p a t i o n according

t o Aluko i s much more d e s i r a b l e i n i n d u s t r i a l f i e l d . 125

I t i s t h e r e s p o n s i b i l i t y of t h e government - S t a t e and which t h e i n d u s t r i a l s e c t o r of t h e

Federal t o provide l e g a l framework withinfeconomy operates

s o a s t o ensure minimum f r i c t i o n and maximum ef f i c i ency . 126

In Xigeria today many laws, decrees and a c t s do e x i s t t o

a i d i n d u s t r i a l promtion and i n p a r t i c u l a r indigenous

p a r t i c i p a t i o n and c o n t r o l of t h e i n d u s t r i a l s e c t o r of t h e

economy f o r instance:

( i ) t h e C q j p a ~ i e s Act 1968

( : i i ) t h e Ni!;c:ril?n Enterpr i ses Fromotion Decrees 1972

and 1977.

( i i i ) Federal i n d u s t r i a l incen t ives embodied i n f i v e

l e g a l instruments:

( a ) The I n d u s t r i a i ~ x t v e l o p ~ e n t ( Income Tax ~ e l i e f )

Act, 1958 a s amended by Decree No.22 of 1971

( b ) The Customs D n t i e s (Approved Users scheme)

(c) The Customs IXt ies (PI . .& and Subsidized

~ o o d s ) Act, 1358.

( d ) The Customs raw-back) Regulations, 1959

( e ) The Income Tar. (~mendment) Act, 1959.

( i v ) T a r i f f p ro tec t ion .

58

Indus t ry does not operate i n a vaccum and t h a t t h e

a c t i v i t i e s of seve ra l o ther m i n i s t r i i a a f f e c t t hose of t h e

Federal Minis try of I n d u s t r i e s . It i s f o r t h i s reason

thzt t h e I n d u s t r i a l Development Coordination Committee

was es t ab l i shed t o f a c i l i t a t e t h e processing and i s s u e of

l i cences , permits and approvals t o i n d u s t r i a l i s t s and z

t o erisure e f f i c i e n t adminis t ra t ion of government incen t ives

t o indus t ry . 727

I t i s not poss ib le f o r i n d u s t r i e s t o become widespread

2nd grow unless t h e r e i s adequate r e l i a b l e and e f f i c i e n t net-

work of good voads, ra i lways, water t r a n s p o r t and

e f f i c i e n t system of p o s t a l and telecomminication se rv ices .

It i s t h e r e s p o n s i b i l i t y of the Federal Government t o

9 r o v i d e these i n f r a s t r u c t u r a l f a c i l i t i e s f o r i n d u s t r i a l

dcve2.opment. But Aluko maintains t h a t these incen t ives

i n themselves a r e not s u f f i c i e n t f o r i n d u s t r i a l t ake o f f .

They cannot be s u b s t i t u t e s f o r measures designed t o enable

Vigerians t o acqui re t h e needzd s k i l l and e x p e r t i s e t o

replace t h e predominantly fo re ign entrepreneurs who a r e

rminly benef i t ing from t h e incen t ives and who by export ing

most of t h e r e a l i s e d p r o f i t s a r e minimally benef i t ing

' r l ' 1,~sger i a through t h e i r s k i l l and investment. The Government

s h ~ l i l d the re fo re c r e a t e oppor tun i t i e s t o acquire entreprene-

\ r i a l s k i l l 2vd exper t i se i n iiidust.ria1 undertakings.

The Second National Development Flan 1970-74 recognises

the need f o r t h e Government t o provide t e c h n i c a l and

odvisory s e r v i x s t o indus t ry . The plan s t a i e s i n t e r a l i a :

... t h e provis ion of advisory se rv ices on a v a r i e t y of t e c h n i c a l and managerial problems is e s s e n t i a l t o t h e success of the i n d u s t r i a l i z a t i o n programme. Without such se rv ices Nigeria businessmen could only with t h e g r e a t e s t d i f f i c u l t i e s overcome the handicaps which have kept t h e i r expansion i n t o t r a d e , t r a n s p o r t , cons t ruc t ion and manufacturing a t a pa in fu l slow pace . I29

I n pursuance of t h i s pol icy t h e Federal Government

took over e x i s t i n g I n d u s t r i a l Development Centres a t Zaria

and Owerri and planned t o e s t a b l i s h a new one i n t h e West.

Government a c t i v e p a r t i c i p a t i o n i n t h e i n d u s t r i a l

field i s e s s e n t i a l f o r t h e i n d u s t r i a l development of t h e

CHAPTER 3

RESEARCH METHODOLOGY

3.0 INTRODUCTION

The p r o j e c t i s an i n v e s t i g a t i v e s tudy of t h e

problems of i n d u s t r i a l development of Benue S t a t e .

Despite t h e a v a i l a b i l i t y of i n d u s t r i a l raw mate r i a l s

3nd s k i l l e d labour and generous incen t ives of fered by

Benue S t a t e Government t h e S t a t e has apparent ly not appealed

t o i n d u s t r i a l inves to r s t o inves t i n t h e S t a t e . This has

led t o t h e statement of problem, t h e ob jec t ives of t h e

study and t h e hypotheses adequately d e a l t with i n

Ch3pter I.

This Chapter the re fo re dea l s with t h e var ious

methods used i n t h e design of t h e ques t ionnar ies ,

p re - t e s t ing of ques t ionnai res , determination of

sample s i z e , adminis-tratiori of ques t ionnai res and

-. . iC e i..c;31ems encountered d w i n g t h e f i e l d work.

3.1 UJESTIONNAIRE DESIGN

The ques t ionnai re was the main instrument through which

t h e da ta used i n t h e study was co l l ec ted . It was however

supplemented by interviews. The designing of t h e

ques t ionnai res took i n t o account t h e ob jec t ives of t h e

s tudy, t h e hypotheses and t h e two groups of respondents - t h e pol icy making organiza t ions including f i n a n c i a l i n s t -

i t u t i o n s and t h e ind iv idua l manufacuring, companies.

The two groups of respondents a r e concerned wi th

t h e i n d u s t r i a l development of Renue S t a t e . Two s e t s

of q u e s t i o n a a i r e s were t h e r e f o r e des igned , a s e t

f o r each group. ( s e e Appendies I11 and Iv). The

two s e t s of q u e s t i o n n a i r e s were developed. They con ta ined

ques t i ons rang ing from dichotomous q u e s t i o n s , m u l t i p l e - choice ques t i ons t o open-ended q u e s t i o n s t o provide

in format ion on t h e respondents end a l s o in format ion

r e l e v a n t s t o k h ~ l---:-qtl-~r>ses.

The dichotorrqss and t h e m u l t i p l e - choice ques t i ons

were used t o f a c i l i t a t e a n a l y s i s .

PRE-TESTING OF GUESTIONNAIRES 3.29 -.---

The idea of p r e - t e s t i n g of t h e q u e s t i o n n a i r e s

was t o determine i f t h e r e were ambiguous o r vague

yues t l ons o r o t h e r d i f f i c u l t i e s o r o t h e r shortcomings.

Thc q u e s t i o n n a i r e s were p r e - t e s t e d on r e l e v a n t

government m i n i s t r i e s , f i r a n c i a l i n s t i t u t i o n s and some

mariufccturing companies i r Makurdi. The r e s u l t s of

t h e p i l o t t e s t were used i ) improve t h e f i n a l

q u e s t i o n n a i r e s t h a t were ~ ; e d i n t h e survey.

3.3 --- DETERIv~INATION - - O F SAM1 LE SIZE

lv i in is t r ies of F i r ranc~ and Economic Planning,

Commerce and I n d u s t r y , Ben92e Investment Company

L-imited, Bznuc Chamber of :omnerce, I n d u s t r y ,

F:ines and A g r i c u l t u r e w h i c ' ~ a r e concerned wi th

i n d u s t r i a l development of 3enue S t a t e , e i g h t

62

commercial and one development banks operating in the

State and eight manufacturing companies that have

capital investments in machinery and equipment of not

less than W2~0,000.00 constituted the population for

this study totalling 23. In this our case therefore the

sample size is the same ax the population for'this

study, that is to say 23.

3.4. ADD1~IKISTRATION OF GUESTIGNNAIRES

The establishments were visited personally

by the researcher. At each establishment, the researcher

hsd to discuss the topic of the study with the Chief

Executive Officer with a view to obtaining his

permission to administer the questionnaire. With the

approval of the Chief Executive Officer the questionnaire

was administered. In some cases the Chief Executive

Officers of some organizations completed the questionnaires

while in other cases they delegated the completion of the

questionnaire to their subordinates. Some completed the

questionnaires immediately and others who could not do

so asked the researcher to c2ll again at a given time

or OP a given day. However, opportunity wss taken to

inteview the respondents to supplement any information

that might be provided on the questionnaire.

The questionnaires were designed in much a way that

L,.,;I .-atablishment coinpleted one copy only. On the whole

twenty three questionnaires were administered, eighteen

were completed and returned ;:iving a resporise ratio of

78.26 percent which t h e researcher cons iders good,

A l l t h e ques t ionnai res re turned were usable.

3.5 FROBLENS ENCOUNTERED

Although t h e experience gained during t h e f i e l d

work was rewarding many problems were encountered i n

the process. The g r e a t e s t problem was t o ga in

accc::sibil i ty t o t h e Chief Executive Of f i ce r of each

establ ishment . I t e n t a i l e d f i l l i n g of forms and a l o t

o f wzi t ing time. Unless t h e Chief Executive o f f i c e r ' s

z ~ p r o v a l t o adminis ter t h e ques t ionnai re was obtained,

no staff of t h e es tabl i shment would r e l e a s e any

information.

The adminis t ra t ion of t h e ques t ionnai res was

expensive f o r it involved extensive t r a v e l l i n g between

towns and within towns.

Again some of t h e respondents never kept t h e i r

promises f o r most of t h e t in t . they were Itnot on seat '!

Therefore t h e researcher had t o make severa l c a l l s on them

t o c o l l e c t completed ques t ionnai res . In some ins tances

ques t ionnai res were misplace3 and they had t o be replaced

t o f a c i l i t a t ' e completion.

PRE;ShIUATION AND ANALYSIS CF DATA --- The bulk of the da ta was c o l l e c t e d from primary

sources through t h e use of ques t ionnai res administered

t o both po l i cy making organiza t ions and manufacturing

companies within Benue S t a t e .

This Chapter has t o equal ly important t w o objectives.

F i r s t , t o f a c i l i t a t e t h e p resen ta t ion of major f indings

and second t h e summary of recommendations/conclusions

which w i l l be d e a l t with i n t h e next Chapter.

I n t h e study twenty t h r e e q.uestionaaires were

administered out of which eighteen usuable ques t ionnai res

were received giving a response r a t i o of 78.26 per cent .

-- TYFL CF ORGANIZATIONS NUKBER OF ORGANIZATIONS INVOLVED -.- -- Government Min i s t r i e s 2

Chamber of cdmmerce

Commercial Ganks

9evelopment Bank

Fllariufacturing Companies

TOTAL

Table 4.1 shows t h a t of t h e e ighteen organizat ions

surveyed two were Benue S t a t e lv i in is t r ies - Dlinistry of

Finance and Economic Planning and t h a t of Commera? and

Industry, c o n s t i t u t i n g about 11.,11 per cent of t h e

respondent organiza t ions one organiza t ion each rep resen t ing

p a r z s t a t a l s and Chamber o f Commerce Industry accounted

f o r 5.56 per centC.~mmercial Banks and Development Bank

accounted f o r 23.92 per cent and 5.56 per cen t

r e spec t ive ly . While manufacturing companies cons t i tu ted

about 33.36 per cent of t h e respondent organizat ions.

SZCTlON A Q .4 FOUNDATION FOR IhDUSTRIALIZATION IPJ -- ElJWL STATE LAID BY - .. .- -

(;C; VLRILPENT I YEARS 1 NATURE OF FOUNDATION ., -. -. . LA I D

Northern Nigeria / 1954-1968 1 NIL

Henue-Flateau 1 1968-1976 I NIL

Kwara S t a t e 1 1968-1976 I NIL

Federal Government 1954-1976 Establishment of 1 Benue Cement Company

Table 4.2 shows t h a t i t i s only t h e Federal Government

t h a t l a i d any foundation f o r i n d u s t r i a l i z a t i o n by

e s t e b l i s h i n g t h e Benue Cement Company Limited which

went i n t o production i n 1960.

F2E-BEhUE STATE ERA: NUMRE,RS OF IhDUSTRIES PHYSICALLY ---. =.=

LCCATED IR THE AREA . - X C T I C N A (3.5 =.

* I n d u s t r i e s l o c a t e d i n Kwara S t a t e and t r a n s f e r r e d

t o Renue S t a t e fo l lowing i t s c r e a t i o n and boundary

adjus tment i n 1976.

GGVERNPIENT

Northern N ige r i a

.Rj-iue-Flateau

Table 4 -3 shows t h a t a p a r t from t h e two i n d u s t r i e s

i n h e r i t e d from Kwara S t a t e , no s i n g l e manufacturing

Iirm was i n h e r i t e d by fienue S t a t e from e i t h e r Northern

R ige r i an Government o r Eenue-Plateau S t a t e Government

between 1954 and 1976, a per iod of 22 yea r s .

NUIWER OF INDUSTRIES YEAR LOCATED

t

1954-1968 1 - 1

IhiX S"i1ES . I N BENUE STATE Jl!HOSE INVESTNENTS I N MACHINERY --

'

Kwa r a / 1968-1976 I 2*

-;i'..D LGUIPPIENT ARE NOT LESS THAN K250.000.00

1968-1976 i -

Fed-era1 Government 1 1954-1 976 -- - 1

TC TA L i I 2 I

I>:VESTMENTS BETWEEN i 25'0,000.00-#5m

1 I

Ih \JLSTNENTS AEOVE HSm

TOTAL

From Table 4.4 o f t h e e i g h t manufacturing companies

$:hose investments i n machinery a r d equipment a r e

riot less than i4250,OOO and which a r e ope ra t ing i n

&nue ::tate one i s owned j o i n t l y by t h e Federa l

Government, Benue, Gongola and P la t eau S t a t e Governments.

Federa l Government i s t h e ma jo r i t y shareholder ; f o u r

owned by Benue S t a t e Government, one is p r i v a t e l y owned

while two a r e j o i n t l y owned by Renue S t a t e Government

::nd Penue S t a t e ind igenes .

-- NUMBER OF I

Fi;CIJ 'GRS -. .. -. . -. -- ' PERCENTAGE RESPONDENTS ? f

P c l i t i c a l c o n s i d e r a t i o n I 33.33

Economic Cons idera t ion 1 50.00

Table 4.5 i n d i c a t e s t h a t one t h i r d (33.33%) o f t h e

- m l i c y of I n d u s t r i a l ! l i spersa l

respondents f e e l s t h a t p o l i t i c a l c o n s i d e r a t i o n determines

I 3 16.67

I

t h e l o c a t i o n o f Federa l Government - owned i n d u s t r i e s i n

the S t a t e s while 50 per cen t of them f e e l s t h a t it i s

economic cons ide ra t ion r a t h e r than p o l i t i c a l cons ide ra t ion .

Yet one s i x t h of them (16.6796) is of t h e view t h a t t h e pol icy

of i n d u s t r i a l d i spe r s ion i s the rnaJor cons idera t ion f o r

c Z + i n F, r F ~ . * ~ " a l Government - owned i n d u s t r i e s i n t h e S t a t e s .

FACTGRS THAT AFFECT INDUSTRIAL DEVELOPNENT O F BENUE STATE -.-.- .

SLCTICN k Q.9 AND SECTI(jIi B U. 15

Table 4.6 shows t h a t a l l t h e respondents or 100 percent

agree tha t - t h e following f a c t o r s : "Inadequate

FHCTCRS ..--a Inadequare Inf r a s t r u - c ture .

Shortage of Investment C3pital

h t e of a v a i l a b i l i t y of e ~ t r e p r e n u e r s

D i f f i c u l t y i n acqui r ing I n d u s t r i a l S i t e

Long g e s t a t i o n period of I n d u s t r i a l project:

Ethnic p o l i t i c s

The hethods of Implementation of Government I n d u s t r i a l P o l i c i e s . -7- -

I n f r a s t r u c t u r e " and "Shorta,ye of Investment Cap i t a lv

PERVENTAGZ

af 'fect t h e i n d u s t r i a l development of Benue S t a t e .

I TOTAL NG. Ob'I RESPONDENTS

I 8

I 8

18

18

18

18

I t

YES

100

100

61.11

11.11

38.89

72.22

27.78

The Table a l s o i n d i c a t e s t h a t eleven respondents or about

NO

-

-

38.89

88.89

61.11

27.78

72.22

61 percent say t h a t Itthe r z t e of a v a i l a b i l i t y of

NUMBER OF

entreprenuers" inf luences t h e r a t e of i n d u s t r i a l

YES

18

18

11

2

7

13

5

RESPONDENTS NO

-

-

7

16

11

5

1 3

69

development of t h e S t a t e . Seven o r about 39 do not

f 2 e l so.

The Table again shows t h a t two respondents or about

I? per cen t say t h a t " d i f f i c u l t y i n acqui r ing i n d u s t r i a l

si te 's a f f e c t s i n d u s t r i a l progress of t h e S t a t e .

Sixteen or about 89 per cen t f e e l t h a t t h i s f a c t o r has

l i t t l e or no e f f e c t on i n d u s t r i a l advancement of t h e S t a t e .

According t o the Table seven respondents o r about

39 r e r cent f e e l t h a t ; i long g e s t a t i o n period of

inaus t r i a1 ,p ro jec t s i f do a f f e c t i n d u s t r i a l development

f o r it inf luences i n d u s t r i a l promoters.

Eleven respondents or about 61 per cent d isagree

with t h i s view.

The Table shows a l s o t h a t t h i r t e e n respondents or

eLout 72 per cent m a i n k i n t h a t fg thn ic p o l i t i c s n has

t z k m i t s t o l l on i n d u s t r i c l development of the S t a t e . Five respondents o r about 23 per cen t s f e e l t h a t t h i s

f:tctor h?s no s i g n i f i c a n t e f f e c t on i n d u s t r i a l advancement

of t h e Stzte;

It can be seen from thL? Table t h a t f i v e respondents or

abcut 28 per cen t agree t h a t qfthe methods of

irnrlementation of government i n d u s t r i a l p o l i c i e s u a f f e c t

i n d u s t r i a l development of the S t a t e while t h i r t e e n

respondents or about 72 per c e n t f e e l otherwise.

&:.hK I N G OF FACTORS THAT AFFECT IRDUSTHIAL DEVELOPMENT ... GF BENUE STATE .a.

SECTION A Q. 10 AND SECTION B G. 16

Factors . I-- Inadequate I n f r a s t r u c t u r e

Shortage of Investment Cap i t a l

Rate of a v a i l a b i l i t y of entrepreneurs

D i f f i c u l t t y i n acqui r ing I n d u s t r i a l S i t e

Long g e s t a t i o n period of I n d u s t r i a l P r o j e c t s

Ethnic P o l i t i c s

The methods of implementation of Government I n d u s t r i a l F o l i c i e s

- TOTAL -

I 8

18

18

18

18

I 8

18 - 126 -

Reading o f f t h e IIRanking of' Fac torsw of t h e seven Factors

-that a f f e c t i n d u s t r i a l clevr lopment of Benue S t a t e

i n descending order on Tab:.e 4.7 we have:

Shortage o f investment Cap i t a l 1st

Inadequate i n f r a s t r u c t u r e 2nd

.a> ,,,xt;e c: of a v a i l a b i l i t y of erztrepreneurs 3rd

Zthnic p o l i t i c s 4 t h

LOR& g e s t a t i o n period of i n f u s t r i a l p r o j e c t s 5 t h

D i f f i c u l t y i n acqui r ing i n d u s t r i a l s i t e

The methods of implementation of Government i n d u s t r i a l p o l i c i e s

F lease note t h ~ t t h e hi; ;-hestfigures i n each

columc determines t h e rank of each f a c t o r .

Based on t h e ranking of t h e f a c t o r s it i s observed

t h 2 t t h e g r e a t e s t f a c t o r a f f e c t i n g i n d u s t r i a l

development of 3enue S t a t e i s "shortage of investment

c a p i t a l , fl f03.7.owed by i t inadequate i n f r a s t r u c t u r e f 1 and

: ; the r a t e of a v a i l a b i l i t y of entrepreneurs" i n t h a t

o rde r , A l t h o ~ g h ilthnic p o l i t i c s f f has been ranked

fnl l -+b + + ; - n w e r t h e l e s s a very important f a c t o r

judping from t h e o?inlnnc z q r e s s e d by many respondents

during o r a l interview.

TAB

LE 4

.8 LE

VEL

O

F D

EVEL

CeF

PlEf

iT OF

INFR

AST

RU

CTU

RE

1I.S

BE

NU

E ST

AT

E

SECTION k

Q

. 1 1

AN

XI SECTION B

Q.

17

I mhm b

T

I I

2 I

0

I I

I L

A

deq

uat

e ,-L-

Go

o2

--.-

.-. F

air

--

--

Poor

Eff

icie

nt

! I

0

4 1

4

7 -

9 2

Inad

e q

us -

t e

Grossly

inzd

equ

ate

8 G

ross

ly Inefficient

I -aL

..

-.

7 .U

9 . .-

2 -. -

5 I

I !

3 8

13

1

3

I

26

1 I

Re

lia

ble

Unreliable

Grosslv

Un

reli

able

'OTA

L +-'--

I I

I 8

I e

18

1

8

18

0 2 16

18

0

1

2 l6

-.,..-.

I 1

08

---

Table 4.8 shows t h a t seven of t h e e ichteen

respondents or about 39 per cent agree t h a t t h e

network o f roads i n t h e s t n t c i s good while nine

or 50 per cent of them descr ibe t h e S t a t e of t h e

rczds i n t h e S t a t e a s f a i r . Two respondents or about

11 per cent f e e l t h n t the s t a t e of the roads i s llpoorll

The Table a l s o shows t h a t water supply i n t h e S t a t e

i s f a r from being adequate :for in .dus t r ia1 1- 'UI -1 lose.

This is the view of t h i r t e e a of t h e e ighteen

respondents, t h a t i s .?.kcut 72 Ter cent . However, two

r e s ~ o n d e n t s or about 11 per cent t h i n k t h a t t h e water

supr.ly i n t h e S t a t e i s ?.dequ>te. I t may mean t h a t t h e i r

c rganiza t ions a r e lucky t o have regu la r and enough

supply of water t o meet t h e i r requirements.

Further a n a l y s i s o f thc Table shows t h a t power

s u r ~ l y i s gross ly inadequate, telecommunication se rv ice

c)nd p o s t a l se rv ice arc i;ros:,ly i n e f f i c i e n t and a i r

t r a n s p o r t se rv ice s r e gross ly unre l i ab le . Sometimes

passengers from and t o Kakurdi take f l i g h t t o and from

Enugu i n Anambra S t a t e , 2 r2ighbouring S t a t e .

k?AYS ORGANIZATIONS C0D;'THIBUTE OR HAS CONTRIBUTED TO

INLUSTRIAL DEVELOI?MiENT OF BENUE STATE -a

SECTION A Q. 12 --.

Table 4.9 shows t h a t Benue S t a t e Ministry of

ORGANIZATIONS -- CONTRIBUTIOKS

Finance, Commercial Banks and t h e Nigerian Bank f o r

f \ : in is t ry of Finance

K i n i s t r y of Commerce m d Indus t ry - Benue Investment pompany Limited

Commercial Banks - F i g e r i a n Bank f o r Commerce and Industry Limited

Commerce and Industry Limited do not hold equ i ty shares

i n i n d u s t r i a l p r o j e c t s i n Beme S t a t e while Plinistry

01 Finance and Commercial Banks do no t o f f e r management

IEQUITY PAKT

- ,/--

advice. A l l o ther organiza t ions do b u t f o r f ees .

TECH XICAL ADVICE

L / "

iL1l t h e organiza t ions o f f e r investment advice f o r f e e s

J

MANAG- W!ENT ADVICE

- L./

GRANT- I N G

LOAbG -

except Dlini-stry of Finance and a l l expect Benue

INVEST- PENT ADVICE

L-"

w*

Investment Company Limited and t h e Commercial Banks o f f e r

J

/-

t e c h n i c a l advice f o r f ees ltxcept Minis try of Finance

Y

v . -

t h a t does it f r e e of chare;:?. Except Minis try of Finance

o

o -

ma Benue Investment Company Limited, a l l t h e organizat ions

-

LC -

gran t i n t e r e s t y ie ld ing 1o;:ns f o r : indus t r i ' a l p ro jec t :

- P

dY

W-

,,

- o

b'

TABLE 4.10

TYPES OF INDUSTRIAL LOANS GWANTED TO INDUSTRIALISTS

SECTION & Q.13 AND Q.14

Table 4.10 i n d i c a t e s t h a t while t h e S t a t e Ministry

- -

OKGL NIZATIONS TYPES OF LOANS

of Commerce and Industry 2.nd t h e Nigerian Bank f o r Commerce

and Industry Limited grant long term and shor t tcrm loans ,

Minis try of Commerce and Indus t ry

Commercial Banks

Rigerian Bank f o r Commerce ard Indus t ry Limited

t h e Commercial banks g ran t s h o r t term and overdraf t .

LONG TERM

\r'

C

v

4

J'

However, t h e loans granted by t h e Benue S t a t e Minis try

& f -

-

of Commerce and Industry a r c f o r small s c a l e i n d u s t r i a l i s t s .

The amount range from ~ 1 0 , 0 0 0 . 0 0 t o ~~100 ,000 .00 f o r

each p r o j e c t . Conditions f o r loans f ~ - ) m any of t h e organiza t ions

include :

( a ) economically viab3 : p r o j e c t

(b ) adequate c u l l a t e r .

( c ) evidence of cornpet > n t management

( d ) t h e na ture of t h e -reject.

TABLE 4.1 1

HAS BENUE STATE GOVERNMENT ANY INDUSTRIAL POLICY?

SECTION A Q. 17 AND SECTION B Q. 22

RESF'GNSES NUMBER OF RESPONDENTS PERCENTAGE I

Table 4.11 ind ica tes t h a t of t he eighteen

Yes

No

Do not know

respondents (100.00%) only seven (38.8996) know t h a t

Benue S t a t e Government has i n d u s t r i a l pol icy while four

7

4 7

(22.2296) a r e pos i t i ve t h a t t h e S t a t e has no i n d u s t r i a l

38.89

22.22

38-89

policy. Seven others (38.89%) do not know whether the

100.00 TOTAL

S t a t e has i n d u s t r i a l pol icy o r not .

18

TABLE 4.12

SECTION A Q. 20 AND SECTION B Q .26

RESEONSES NUMBEX OF RESPONDENTS PERCENTAGE

13 1 72.22

1 27.78

TCTAL I

100.00

Table 4.12 shows t h a t 72.22 per cent agree t h a t t h e

incen t ives being of fered by both t h e Federal Government

and t h e Benue S t a t e Government a r e q u i t e a t t r a c t i v e

while 27.78 per cent th ink t h a t t h e incen t ives being

of fered t o i n d u s t r i a l i s t s by t h e Governments a r e not

s u f f i c i e n t l y a t t r a c t i v e .

Although t h e incen t ives a r e a t t r a c t i v e Benue

S t a t e does not seem t o appeal t o inves to r s because of

poor i n f r a s t r u c t u r a l f a c i l i t i e s and e thnic p o l i t i c s .

TABLE 4.13

CGIVTRIBUTION OF - FEDERAL a * ---..- GOVEKNMENT, - - --- BENUE -, - STATE GOVERNMENT, BENUE CHAYBER OF COMMERCE INDUSTRY MINES AND AGRICULTURE !iIVD BENUE INVESTNENT COlYPIiNY LIMITED

SECTION A (2.22 AND SECTION B Q.28

QUALITY OF CONTRIBUTION

Excel lent

Very Good

Gcod

F.rir

Poor

TOTL L

BENUE CHAMBER

OF COMMEFXZ

BENUE INVEST- MENT CO. LIMITED

TOTAL

This table reveals that 94.44 per cent rated the Federal Governmentst contribution to the industrial

development of Benue State as "poorv It should be noted

that the Federal Government sold its Makurdi Rice Mill worth

of over W8 million to Benue State Government in 1987.

However, the Federal Government has controlling shares

in Benue Cement Company Limited.

In the case of Benue State Government 50 per cent of

the respondents rated the Government's contribution as

'good1 and about 33 per cent of them rated the Government's

performance as 'fairt We wish to observe that the Benue

State Government's Burnt Bricks Company Limited Otukpo,

Sanitary Wares Limited Idah and Taraku Vegetable Oil

and Feed Mill Limited, each worth multi-million naira

will soon be commissioned.

The Benue Chamber of Commerce, Industry, Mines and

Agriculture has been rated as second poor performance to

the Federal Government. About 72 per cent of the respondents

has rated its contribution to industrial development of

Benue State as 'poort while about 28 per cent has rated

the Chamber's contribution 2s 'fair' We wish to observe

that the Benue Chamber of Commerce, Industry Mines and

Agriculture has not been able to organise any Trade Fair.

The impact of the Chamber in industrial circle has not

been noticed at all.

The r a t i n g of con t r ibu t ion of Benue Investment

Company Limited t o t h e i n d u s t r i a l development of Benue

S t a t e presents an i n t e r e s t i n g p i c t u r e . About 10 per

cen t of the respondents i n each case has r a t e d t h e

Company's con t r ibu t ion t o t h e i n d u s t r i a l development

of t h e %ate a s Wery good11 and ngoodt' r e spec t ive ly .

Atout 39 per cent of t h e respondents i n each case has

r a t e d t h e Company's con t r ibu t ion a s " fa i rv and "poor1'

r e spec t ive ly . The Company's " f a i r " con t r ibu t ion seems

t o have been wiped out by t h e trpoorl' cont r ibut ion .

I t is p e r t i n e n t t o po in t out t h a t it i s very d i f f i c u l t

t o a s s e s s t h e performance of Benue Investment Company

Limited s ince i t s output i s se rv ice and not t ang ib le

prcducts.

On t h e whole one may be inc l ined t o conclude t h a t

t h e con t r ibu t ion of the z c t o r s i n t h e i n d u s t r i a l

development of Benue S t a t e is "poor1' The t o t a l number

of responses (40) supports t h i s conclusion.

TABLE 4.14

OWNERSHIP OF MANUFACTURING I~llUSTHIES I N BENUE STATE

I FEDERAL BENUE STATE BENUE STATE PRIVATE TOTAL GOVERNMENT GOVERNMENT INVESTORS

PRIVATE

On t h e bas i s of cwnership, t h e publ ic s e c t o r dominates

t h e surveyed manufacturing e n t e r p r i s e s with 5 out of 8

c r about 63 p e r cent with Benue S t a t e Government leading

with 4 out of 8 or 50 per cent followed by Benue s t a t e /

P r i v a t e Inves tors 2 out of 8 o r 25 per cent . Federal

Government and Pr iva te Inves tors follow with 1 each out

o f 8 c..r 12.5 per cent .

The wide gap i n ownership oi' manufacturing i n d u s t r i e s

between publ ic and p r i v a t e , ;ectors i n Benue S t a t e expla ins

t h e r a t e of a v a i l a b i l i t y of entrepreneurs i n t h e S t a t e .

This s i t u a t i o n i s onc o f t h i ! f a c t o r s t h a t a f f e c t t h e

i n d u s t r i a l development of t.3e S t a t e .

TABLE 4.75

SOURCES OF INITIAL CAPITAL OUTLAY

SECTION B QUESTIONS 8 LAID 9

SOURCES OF I N I T I A L CkLF ITAL GUTLAY

Equity Cap i t a l

Equity Capi ta l / Term Loan

Equity Capi ta l / Term ~oan /%er - d r a f t

TOTAL

i 2

I 33 .oo N B C I Limited

NIDB Limited I

IUMBER OF LESPONDENTS

This Table r e v e a l s t h a t 4 out of 6 o r about

67 per cent of t h e manufacturing companies surveyed r a i s e d

t h e i r i n i t i a l c a p i t a l cu t l ay through equi ty con t r ibu t ion

of t.he members. Only 2 out of 6 or about 33 per cent

r a i s e d p a r t of t h e i r i n i t i a l c a p i t a l through development

banks t h a t i s t o say frcm t h e Nigerian Bank f o r Commerce

and Indus t ry Limited and the Nigerian I n d u s t r i a l Development

Bank Limited. The commercial banks d i d not come t o t h e a i d

of any of t h 6 Companies. This shows t h e d i f f i c u l t y of

r a i s i n g i n v e s t i b l e funds through f i n a n c i a l i n s t i t u t i o n s

i n t h e 'S ta te .

PERCENTAGE BANKS THAT PROVIDE TERM LOAN/OVERDRAFT

4

- f

- i

67.00

-

-

EFFECTS OF STRUCTURAL ADJUSTMENT PROGRAMME ON - fi'i'LUFACTURING INDUSTKIES

fhICHI- U R Y

IF. N o 1

6

6 ,

6 6 - 1 .

EFFECTS - Huge Working Cal?i ta l 6

High Cost of Cny:ita.l i Eigh c o s t of Raw Piater ia ls

Sca rc i ty of Spare P.cg-t s I

I A v e i l n b i l i t y of I P l a n t s , Machinery and equipment

High Production Ccst

i-

-,- ---- Table 4. I 6 shows t h a t F 11 t h e s i x respondent manuf ac t u r i r q

comy.anies were unanimous akcc?t t h e e f f e c t s o f t h e

S t r u c t u r a l Rdjustement progr2mme (SAP) on t h e i r operat ions.

A l l t h c s i x r e s p o x l e n t ~ ?.gree t h a t the S t r u c t u r a l

:?d justmcnt p--r7gr;7rrne c a l l s f \r huge worlking c a p i t a l not

orlly i n term of f o r e i ~ p exck- :nge but a l s o i n l o c d

currency beca.use ~f gal-lupin ; i n f l a t i o n .

COST OF CAPITAL: Under SAP, t h e i n t e r e s t r a t e has been

deregulated and t h e c o s t of c a p i t a l i s very high.

A 1 1 t h e respondents acknowledge t h i s f a c t .

Mil% MATERIALS P

A 1 1 t h e respondents agree t h a t both imported raw

mater ia ls and those sourced l o c a l l y a r e q u i t e expensive.

The imported raw mate r i a l s a r e expensive i n terms of hard

currencies. Since t h e importation of some raw mater ia ls have

been banned f o r ins tance wheat, bar ley and mal t , maize,

the re has been g r e a t demand f o r t h e l o c a l s u b s t i t u t e s and

hence t h e i r high p r i c e s .

SPARE PARTS: Also a l l t h e respondents agree t h a t under - SAF spare p a r t s a r e very scarce and t h a t t h e i r p r i c e s

a r e p r o h i b i t i v e i f ava i l ab le .

FURCHASE OF NEW PLANTS, MACHINERY AND EQUIPMENT

The respondents axree t h a t new p l a n t s , machinery

sncl equipment a r e d i f f i c u l t t o come by. In terms of hard

cu r renc ies t h e p r i c e s have sky-rocked. Replacements of

old p l a n t s , machinery and eqdipment a r e v i r t u a l l y

irny?ossible. A f l o u r m i l l f a c t o r y and a pharmaceutual

hanufacturing companies bein:; e s t ab l i shed i n Otukpo

Local Government Ares i n Rcnl~e have been abandoned due

t o t h e i n a b i l i t y of the prom ~ t e r s t o acquire t h e

necessary p l a n t , machinery and equipment.

PKCDUCTION COST: The Structural Adjustment Programme has

taken its toll on the cost of production of goods

manufactured in Nigeria. The respondents maintain that

this is so because of the high cost of imported inputs.

The cost of locally produced raw materials is also quite

high because some of them ere used not only for household

consunrL '-mn but also for industrial purposes and

for export.

CHAPTER 5

SUNMARY OF FINDINGS, TEST OF HYPOTHESES, RECOMMENDATIONS, CGNCLUSION AND AREAS OF FURTHER RESEARCH

5.1 . SUMMARY OF FINDINGS:

The s tudy has made i n t e r e s t i n g r e v e l a t i o n s about

t h e problems of i n d u s t r i a l development of Benue S t a t e .

Below is t h e summary of t h e s e f i n d i n g s .

1 . The defunc t Northern Niger ian Government

1954 - 1968 Benue P l a t e a u S t a t e and Kwara S t a t e

1968 - 1976 and t h e Fede ra l Government d i d not

l a y any founda t ion f o r t h e i n d u s t r i a l development

of t h e p r e s e n t Benue S t a t e . However Benue

i n h e r i t e d two i n d u s t r i e s from Kwara S t a t e .

2. Four main f a c t o r s t h a t m i l i t a t e a g a i n s t

i n d u s t r i a l development of Benue S t a t e i n o rder

of importance a r e :

(i) Shortage of investment c a p i t a l

( i i ) Inadequate i n f r a s t r u c t u r e

( i i i ) Rate of a v a i l a b i l i t y of en t r ep reneu r s , and

( i v ) - E thn ic P o l i t i c s .

The o t h e r s are:-

( 1 ) d i f f i c u l t y i n a c q u i r i n g i n d u s t r i a l s i t e and

( 2 ) t h e methods of implementation of Government

i n d u s t r i a l p o l i c i e s .

3 , On the quest ion of i n f r a s t r u c t u r e except

network of roads t h a t i s f a i r l y i n good

condit ion a l l components of i n f r a s t r u c t u r e t h a t

i s power, water, telecommunication and p o s t a l

serv ices and a i r t r a n s p o r t a t i o n se rv ice a r e f a r

from being adequate. Power supply and water

supply a r e f a r from being adequate f o r i n d u s t r i a l

purposes.

4. Of t h e e igh t func t iona l i n d u s t r i e s operat ing i n

Benue S t a t e whose c a p i t a l investment i n machinery

and equipment i s not l e s s than #250,000.Q0 only

one i n p r i v a t e l y owned.

5. On t h e l o c a t i o n of Federal Governmentmed

i n d u s t r i e s about 50 per cent of the respondents

maintain t h a t economic cons idera t ion i s t h e

main c r i t e r i o n . We wish t o p o i n t out t h a t

i n both Anambra and Benue S t a t e s where c o a l is

mined i n l a r g e q u a n t i t i e s nonc of t h e s t e e l

r o l l i n g m i l l i s siYced i n o ther S ta te .

6, Many respondents do not know whether Benue S t a t e

has . indus t r i a l pol icy . Only seven of t h e

e ighteen respondent:; claim t h a t they do know.

The ob jec t ive of any i n d u s t r i a l pol icy i s t o

promote i n d u s t r i a l iro;rth e i t h e r i n t h e

c ~ ~ . ' - - - - o r i n t h e S t a t e concerned. This can

only be achieved i f t h e c i t i z e n s i n genera l

and i n d u s t r i a l i s t s and prospect ive i n d u s t r i a l i s t s a r e

aware of t h e pol icy.

7. Many i n d u s t r i a l i s t s and p o t e n t i a l i n d u s t r i a l i s t s

f i n d it d i f f i c u l t t o obta in loans from f i n a n c i a l

i n s t i t u t i o n s because of s t r i n g e n t condi t ions which

include :

( a ) adequate c o l l a t e r a l

(b) t h e p r o j e c t must be economically v i a b l e

economically viable11 p r o j e c t i s sub jec t t o

t h e i n t e r p r e t a t i o n of t h e lender .

( c ) evidence of competent management, and

(d) t h e na ture of t h e p r o j e c t .

That i s t o say whether t h e p r o j e c t is wi th in t h e

p r i o r i t y a r e a a s def ined by t h e Federal Government

from time t o time.

C. Although t h e incen t ives of fered t o i n d u s t r i a l i s t s by

Benue S t a t e Government are q u i t e a t t r ~ c t i v e , Benue S t a t e

does not appear t o appeal t o i n d u s t r i a l i s t s

because of poor i n f r a s t r u c t u r a l f a c i l i t i e s and in-

f i g h t i n g between t h e t h r e e main e t h n i c groups i n t h e

S t a t e - -Idoma, I g a l a and Tiv.

9. Contr ibut ions of Federal Government, Benue S t a t e

Government, Benue Chamber of Commerce, Indus t ry ,

Mines and Power and Benue Investment Company

Limited.

( i ) FEDERAL GOVERNMENT

The contribution of the Federal Government

to the industrial development of Benue State

has been rated as lfpoorll by all except one

respondent. Apart from the Benue Cement

Company Limited in which the Federal Government

has the controlling interest the Government

has no financial interest in other Company in

Benue State.

( ii) BENUE STATE

The contribution of Benue State Government

to industrial development of the ~tat'e has been

rated as ngood" It has established four

industries which are already operational in

addition to the two inherited from Kwara State,

has shares in,two others while other three

are ready to be commissioned any time from now.

(iii) BENUE CHAMBER OF COMMERCE,INDUSTRY, MINES AND AGRICULTURE

Majority of the respondents rate the contribution

of Benue Chamber of Commerce, Industry, Mines

and Agriculture to the industrial development

of Benue State as flpoorfl, They maintain that

the Chamber has not be able to organise a

Trade Fair.

( i v ) BENUE INVESTMENT COMPANY LTMITED

The con t r ibu t ion *Y i n d u s t r i a l development of

Benue S t a t e by Benue Investment Company Limited

has been assessed on average a s "good" because

seven r a t e d i t s performance a s " f a i r 1 while

seven o the r s r a t e d t h e performance as poor

which appears t o cancel each o ther out.

On t h e o ther hand two respondents r a t e d t h e

performance of t h e Company a s If very good11

while two o the r s r a t e d it "goodf1 hence o v e r a l l

r a t i n g i s s a i d t o be "good11 on t h e average.

The Benue Investment Company Limited was

incorporated a s a l imi ted l i a b i l i t y company

i n October, 1979 t h e ob jec t ives of which

include : - ( 7 ) Benue Investment Company i s t o t ake over

shares and p roper t i e s t h a t went t o Benue

S t a t e a f t e r t h e break-up of t h e old

Northern Region and the defunct Benue-

P la teaa S t a t e including o ther shares i n

t h e State-owned Companies and manage

same on behalf of Benue S t a t e Government.

The underlying value of t h e Assets/

P roper t i e s i s t o be used i n r a i s i n g

funds with which t o undertake new

investments within t h e S t a t e .

( 2 ) Benue Investment Company i s t o he lp

development/promote I n d u s t r i a l Ventures

i n Benue S ta te .

( 3 ) Benue Investment Company i s t o provide consul t ing

and business advisory se rv ices t o deserving

entrepreneurs i n t h e S t a t e , i n add i t ion t o

f i n a n c i a l a s s i s t a n c e (equi ty/ loan)

(4) A s was t h e case u n t i l around 1982, Benue

Investment Company was t o a c t a s a holding

company under which umbrella came such

p r o j e c t s as:

- Lobi Bank of Nigeria Limited

- Benue Educational Supply Company Limited

- A proposed Insurance Company

- Proposed Construction Company.

10. STRUCTURAL ADJUSTMENT PROGRAMME (SAP)

The S t r u c t u r a l Adjustment Programme has infiLi.cted

a se r ious i n j u r y on t h e i n d u s t r i a l development of

Benue S t a t e . While t h e e x i s t i n g i n d u s t r i e s a r e s t rugg l ing

t o snrvive SAP has d e a l t a dead blow t o some proposed

i n d u s t r i e s including Benue Floor M i l l s Limited and Benue

I a n i c Pharmaceuticals Limited a l l i n Asa-Otukpo.

The promoters lament t h e i r i n a b i l i t y t o import t h e

needed p l a n t , machinery and equipment because of t h e

p roh ib i t ive p r i c e s of these items i n terms of hard

currencies . ,

91

5.2 TEST OF HYPOTHESES - The da ta gathered i n t h e course of t h i s research ,

analysed and presented i n Chapter 4 of t h i s Pro jec t

Report a r e used here t o t e s t t h e v a l i d i t y of t h e

hypotheses put forward i n t h e study.

HYFOTHESIS I

"The l e v e l of i n f r a s t r u c t u r a l development

a f f e c t s i n d u s t r i a l development of Benue State.11

To t ~ - : t t h e v a l i d i t y of t h i s hypothesis we use

t h e da ta presented i n Tables 4.6; 4.7 and 4.8. Table 4.6

shows t h a t 100 per cent of t h e respondents s a i d t h a t

"Inadequate I n f r a s t r u c t u r e f t i s a major f a c t o r t h a t

a f f e c t s i n d u s t r i a l development of Renue S t a t e .

I n Table 4.7 where t h e major f a c t o r s t h a t a f f e c t

i n d u s t r i a l development of Benue S t a t e have been ranked by

respondents i n descending o rde r , "1nadequate I n f r a s t r u c t u r e u

came second. Table 4.8 s h c ~ s t h e l e v e l of i n f r a s t r u c t u r a l

development i n Renue S t a t e , Except t h e network of goods

which i s f a i r l y good, therc. i s nothing t o wr i t e home about

the l e v e l of development oi ' t heo the r components of i n f r -

a s t r u c t u r e shown i n t h e Ta1:le under re ference . The f ind ings

of Tables 4.5, 4.7 and 4.8 ?upport t h a t t h e Hypothesis

t h z t ''The l e v e l of i n f r a s t r a x t u r a l development a f f e c t s

i n d u s t r i a l development of Ebznue S ta te . " The hypothesis i s

the re fo re accepted.

HYPOTHESIS 2

"Shortage of investment c a p i t a l slows down the

r a t e of i n d u s t r i a l development of Benue State.Il

To t e s t the v a l i d i t y of t h i s hypothesis we use

Table 4.6 and 4.7. Tcble 4.6 shows t h a t 100 per cent

of t h e respondents s a i d t h a t Itshortage of investment

capit211 slows down t h e r a t e of i n d u s t r i a l development

of Benue State , I1 In Table 4.7 where, t h e major

f a c t o r s t h a t a f f e c t i n d u s t r i a l development of the S t a t e were

ranked by respondents itshortage of investment capi ta l l '

ranked f irst . The f ind ings cjf Table 4.6 and. Table 4.7

s u ~ ~ o r t t h e hypothesis t h a t "shortage of investment

c a p i t a l slows down t h e r a t e of i n d u s t r i a l development of

Benue Sta te ." The hypothesis i s the re fo re accepted.

HYPOTHESIS 3

"Long g e s t a t i o n period of i n d u s t r i a l p r o j e c t s

inf luences t indus t r ia l promcters."

To t e s t t h e v a l i d i t y of t h i s hypothesis we make

use of Table 4.6 and Table 4.7. Table 4.6 i n d i c a t e s

t h a t approximately 39 per cent of t h e respondents

s a i d t h a t long g e s t a t i o n period of i n d u s t r i a l p r o j e c t s

inf luences i n d u s t r i a l promoters while about 61 per cent

disagreed. Table 4.7 where f a c t o r s t h a t a f f e c t

i n d u s t r i a l progress of t h e S t a t e were ranked by respondents

t h i s f a c t o r came f i f t h out of the . seven f a c t o r s .

To determine whether t h e d i f fe rence i n opinions

is s i g n i f i c a n t enough t o draw a v a l i d conclusion,

we use a chi-square t e s t t o e s t a b l i s h t h i s .

Using Table 4.6, we have t o formulate a l t e r n a t i v e

hypothesis c a l l e d t h e Null Hypothesis - Ho

The Null Hypothesis i s a s fc)llows:

"Long g e s t a t i o n period of i n d u s t r i a l p r o j e c t s does

not inf luence i n d u s t r i a l p r O m ~ t e r s . ~ l

I f t h e n u l l hypothesis were t r u e then t h e r e

would be a 50-50 response t o t h e qucst lon. Then the expected value of chi-souare ~~2 given a=o.Og a t 1 degree of P . - 2edon: =: ., . L. ,..

Using Y a t e l s con t inu i ty co r rec t ion s ince t h e r e i s one

degree of freedom.

That i s X' I - Ei i ) - 0.5 ---&I 9,- 4

Vhere 0 i s t h e observed and E i s t h e expected.

We then c a l c u l a t e t h e chi-st:iaure from the observed

da ta a s follows.

2 Calculated X = i..41

94 2 The,calculated value of X is outside the acceptable

range. Therefore, the null hypothesis - Ho is rejected. We accept the hypothesis that Long

gestation period of industrial projects influences

industrial promoters.11

HYPOTHESIS 4 "The methods of implementation of government

i.ndustria1 policies affect the rate of industrial

development of Benue Stateon

To test the validity of this hypothesis we again

make use of Tables4.6 a ~ d 4.7. According to Tablc- 4.6

approximately 28 per cent of the respondents said that

the methods of implementation of government policies

militate against industrial progress of Benue State

while ebout 72 per cent felt otherwise. Table 4.7

shows that this factor ranked seventh and last of the

factors that militate apinst industrial development of

the State.

To determine if the difference in opinions is

significant enough to draw valid conclusion we use a

chi-square test to establish this. For this purpose we use

T~ble 4.6. The Null Hypothr.sis - Ho is as follows: !'The methods of irnplem(->ntation of government policies

do not affect the rate of industrial development of

Benue State.

I f t h e n u l l hypothesis were t r u e then t h e r e would

be a 50-50 response t o t h e quest ion. Then t h e expected

value of chi-square x2 river:, a = 0.05 a t 1 degree of

freedom =3.84

Using Y a t e t s con t inu i ty co r rec t ion s ince t h e r e i s

one degree of freedom.

x2 f~orn -:he Table := 3.84.

2 The ca lcu la ted va lce of X I ; outs ide

range. Therefore t h e n u l l 1. -pothes is

t h e acceptance

- Ho i s r e j e c t e d .

We t he re fo re accel t the hypc h e s i s t h a t "The methods

cf implementation ~f governn,?nt i n d u s t r i a l p o l i c i e s a f f e c t

t h e r a t e of indus'i';: ?id cievel )pment of Benue S t a t e .

HYPOTHESIS 5

VThe r a t e of a v a i l a b i l i t y of entrepreneurs

inf luences i n d u s t r i a l development of Benue State.fl

To t e s t t h e v a l i d i t y of t h i s hypothesis we again

make use of Table 4.6 and Table 4.7. Table 4.6 i n d i c a t e s

t h a t about 61 per cent of t h e respondents agreed t h a t

t h i s f a c t o r a f f e c t s i n d u s t r i a l advancement of t h e S t a t e

while about 39 percent of them disagreed. Table 4.7

where the f a c t o r s t h a t a f f e c t t h e i n d u s t r i a l progress

of t h e S t a t e were ranked by t h e respondents shows

t h a t t h i s f a c t o r s ranked t h i r d out of the seven f a c t o r s .

To determine i f t h e d i f fe rence i n opinions i s

s i g n i f i c a n t enough t o draw v a l i d conclusion we use

chi-square x2 - t e s t t o e s t a l i s h t h i s . For t h i s

we use Table 4.6. The Null Hypothesis - Ho i s a s

follows:

,,The r a t e of a v a i l a b i l i t y of entrepreneurs has no

inf luence on i n d u s t r i a l development of Benue Sta te ."

If the Null hypothesis were t r u e then t h e r e

would be a 50-50 response t c t h e question. Then t h e

2 expected value of chi-square, X given a = 0.05 a t

1 degree of freedom = 3.84.

Using Y a t e l s con t inu i ty c o r r e c t i o n s ince the re i s one

degree of freedom. n

2 X from t h e Table = 3.84

Calculated X' = Lc.lcl

The ca lcu la ted value of x2 i s outs ide t h e ecceptable

range. Therefore t h e Null hypothesis - Ho i s r e j e c t e d .

We the re fo re accept t h e hypothesis t h a t "The r a t e of

a v e i l a b i l i t y of entrepreneurs inf luences i n d u s t r i a l

development of Benue S t a t e . f 1

5.3 RECOMMENDATIONS

The research has been ~ b l e t o e s t a b l i s h t h a t a

number of f a c t o r s m i l i t a t e g gain st i n d u s t r i a l

development o f Renue S t a t e . Thc f a c t o r s include u t t e r

neglec t of t h e a rea by t h e c-efunct Northern Nigeria

Government and Benue-P!?tt,ai and Kwara S t a t e Some of t h e

f a c t o r s l i k e t h e l ack of g:;od roads and inadequate

water supply, a r e within t h . con t ro l of Benue S t a t e while

o the r s a r e within t h e c o n t r c l of t h e Federal Government

and i t s agencies . Thcy include u t i l i t i e s l i k e power

supply, telecommunication sc.rvice, p o s t a l se rv ice and

a i r t r a n s p o r t serv ic t> . Yzt t h e r e a r c o the r s t h a t a r e

uncont ro l lab le by .my goverl :nent. They may be descr ibed

as environmental factors, for instance, ethnic

politics and the rate of availability of entrepreneurs.

In the light of these major findings, the researcher

wishes to make the following recommendations. Hopefully

if these recommendations are implemented faithfully

they may hasten the rate of industrial development of

I- -

i3enue State. The researcher has corporatedlin his ,

recommendations some suggestions made by respondents.

The researcher therefore makes the following

recommendations.

1. IYTJ-LDEGU~~TE INFRflSTRUCTlJRE

(a) NETWORK OF ROADS

Although the effort of Benue State Government

in this direction is commendable the Government

should endeavour to provide good roads in some

local government areas where there are none.

A11 the Local Governmect Headquarters should be

linked to the State Hezdquarters with all season

roads.

The State Government should put pressure on the

Federal-Government to cons.truct its (~ederal

~overnment) own roads within the State.

( b ) WATEK,. SUPPLY: The S t a t e Government or i t s

agencies should ensure speedy execution of water

supply c o n t r a c t s i n var ious p a r t s of t h e S t a t e .

I f t h e water p r o j e c t s are completed t h e r e w i l l

be adequate water supply f o r both i n d u s t r i a l and

domestic uses.

( c ) POWER -- SUPPLY: This i s t h e r e s p o n s i b i l i t y

of Federal Government and i t s agency National

E l e c t r i c Power Authority (NEPA). A s a r e s u l t of

the S t a t e Govcrnmentls p lea f o r urgent a c t i o n t o

improve t h e power supply i n t h e S t a t e the Federal

Government awarded con t rac t s about May, 1988 f o r

t h e c o n s t r u c t i m of 331tV l i n e from Enugu t o Makurdi.

The S t a t e Governr!le?t should do a l l i t s power t o ensure

t h a t t h e c o n t r a c t s a r c executed within t h e

s t i p u l a t e d time of t h r c z yea r s i f t h e S t a t e Government's

p lea f o r completion wi-Lnin eighteen months i s not

heeded.

The S t a t e Goverame.-t should pursue vigorously

i t s pol icy of r u r a l e l ( . c t r i f i c a t i : m . This w i l l

f a c i l i t a t e t h e s e t t i n g , ~ p of medium and small

s c a l e i n d u s t r i e s i n thc r u r a l a reas of the S ta te .

fd) A I R TRANSPORT SERVICE POSTAL SERVICE AND TELECOM~/IUNICATIONSER~~TE~- - The se rv ices being rendered a t present i n t h e

S t a t e by these Federal Government agencies a r e

g ross ly i n e f f i c i e n t and unre l i ab le , There i s need

f o r t h e S t a t e Government t o take up t h e matter

with t h e appropr ia te q u a r t e r s of the Federal

Government with a view t o obta in ing r e l i a b l e and

e f f i c i e n t s e r f i c e s from t h e s e p a r a s t a t a l s .

2. ---- RkTE OF AVAILABILITY -- OF ENTREPREWURS -. -- . we-.- - - -."--. - - " - - Many entrepreneurs p r e f e r t o inves t i n t r a d i n g ,

con t rac t ing passenger t rz -zpcr ta t ion and road haulage

business where t h e r e t u r n s on investment a r e l a r g e r

~ . n d quicker t o inves t ing i n i n d u s t r i a l p r o j e c t s ,

The S t a t e Government I n c ~ i l ~ b o r a J c i o n with Benue

Investment Com~any Lirni'ied ar i Benue Chamber of

Ccmmerce should organise a s ~ ? i e s of i n d u s t r i a l promotions

with a view t o k indl ing i n ~ : - ; ~ e g r e ' t ? e u r s t o d e s i r e t o

i n v e s t i n i n d u s t r i a l pro jec t : ; ,

SHORTAGE OF INVESTMErJT IPITAL 3 . , - 7 - -. . --, - -.. > .<

The g r e a t e s t obs tac le t , t h e i n d u s t r i a l growth of

Benue S t a t e i s shortage of i~ vestment c a p i t a l .

To cushion i t s e f f e c t t h e c . t i z e n s should p a r t i c i p a t e

a c t i v e l y i n i n d u s t r i a l develcprnent of t h e S t a t e through

j o i n t ventures . Benue Invesiinent Company Limited should

a s s i s t genuine i n d u s t r i a l p r f noters t o secure loans

from Nigerian I n d u s t r i a l Development Bank.,Limited (NIDB) and

Nigerian Bank foo Commerce and Industry Limited (NBcI).

4. ETHNIC POLITICS

The o v e r a l l development of Benue S t a t e including

i n d u s t r i a l development has been plagued by e thn ic

p o l i t i c s e s p e c i a l l y among pol icy makers. Although

t h i s cannot be d i r e c t l y con t ro l l ed by t h e S t a t e

Government t h e r e i s t h e need f o r t h e Government t o use

s o c i a l and r e l i g i o u s l eader s t o wage war aga ins t t h i s

s o c i a l e v i l . I f t h e b a t t l e i s won it w i l l f a c i l i t a t e t h e

o v e r a l l development of t h e S t a t e . It w i l l be easy

f o r t h e c i t i z e n s . t o pool t h e i r resources t o e s t a b l i s h

v i a b l e i n d u s t r i a l p ro jec t s .

5. IMPLEMENTATION OF GOVERNMENT INDUSTRIAL POLICIES

The implementation of the S t a t e Government i n d u s t r i a l

p o l i c i e s has been slow, hahazard and incons i s t en t .

There i s t h e need ' therefore f o r Government t o e s t a b l i s h

S t a t e I n d u s t r i a l Coordination Committee t o implement

t h e Government i n d u s t r i a l p c l i c i e s properly. The

Committee should comprise of t h e r ep resen ta t ives of

t h e Minis try of Finance and Economic Planning, Minis try

of Commerce and Indus t ry , N i n i s t r y of Land and Survey, Minis try of Agr icul ture ,

f M i n i s t r y of Information A r t s and Culture and Benue

Investment company l imi ted . The committee should

continuously review t h e S t a t e and n a t i o n a l scenes a s they

a f f e c t i n d u s t r i a l development a c t i v i t i e s o f t h e S t a t e .

6. INCENTIVES TO INDUSTRIALISTS - The incen t ives cu r ren t ly being of fered by t h e

S t a t e Government t o i n d u s t r i a l i s t s should be competit ive

with those being of fered by o ther S t a t e s s ince each S t a t e

now a c t i v e l y l u r e s both l o c a l and fo re ign inves to r s .

The S t a t e Government should pursue vigorously i t s pol icy

on t h e provis ion of I:- :LIZ; ' " I layouts Itin four

s t r a t e g i c and s u i t a b l e a reas of the S t a t e , Makurdi,

Katsina-Ala, Otukpo and Idah." We a l s o recommend t h a t

i n d u s t r i a l s i t e be r e n t f r e e say, f o r a period of

f i v e yea r s .

7. ESTABLIS7-TMENT OF INDUSTRIAL CENTRE - -.-- ,.---- --- Although Benue S t a t e i s wi th in t h e opera t iona l

a rea of t h e Federal I n d u s t r i a l Centre i n Zaria , t h e

Centre apparent ly does not a t t end t o t h e needs of

i n d u s t r i a l i s t s i n Renue S t a t e promptly. This may be due

t o the g r e a t d i s t ance < ~ 2 d d ' . f f i c u l t y i n communication.

Therefore it i s suggested t h a t the S t a t e should e s t a b l i s h

i t s own I ? r l x s t r i a l Developrnf>nt Centre t o a t t end promptly

t o the needs of i n d u s t r i a l zoncerns i n t h e s t a t e .

8. LACT' OF FEDERAL GOVERhT LENT PRESENCE ----- , . -..----

Apart from Benue Cernen; Company Limited i n Gboko

Local Government Area of th:: S t a t e , the presence of

Federal Government i s v i r t u l l l y lacking i n t h e i n d u s t r i a l

scene of the S t a t e . Despit , : two opera t ional coa l mines

i n t h e S t a t e (Owukpa and Ok..ba) t h e S t a t e 'did not

benef i t from t h e establishment of s t e e l r o l l i n g

m i l l s . There is t h e Aecd f o r t h e S t a t e Government

t o take up with t h e appropr ia te quar t e r s t h e i s s u e

of s i t i n g Federal Government owned i n d u s t r i e s i n

t h e S t a t e .

9. BENUE CHAMBER OF COI'QIERCE, INDUSTRY, MINES AND AGRICULTURE

It i s t h e view of many respondents t h a t t h e Chamber

has not made any mark on t h e i n d u s t r i a l map of the S t a t e .

I t may be due t o t h e des t ruc t ive fo rces of e thn ic

p o l i t i c s . It i s suggested t h a t t h e leadership of the

Chamber be changed t o make way f o r leadership t h a t i s

n a t i o n a l i n outlook.

10. STATE GOVERNMENT PUNS OF DISENGAGEMENT FROM ACTIVE PARTICIPATION I N INDUSTRIAL ACTIVITES

Benue S t a t e Government says i n i t s cur ren t i n d u s t r i a l

Pol icy t h a t it would be involved i n i n d u s t r i a l

development only Nto show t h e way and encourage p r i v a t e

s e c t o r p a r t i c i p a t i o n " and t h a t Ifthe Government would

only be involved d i r e c t l y ir t h e establishment of

s t r a t e g i c i n d u s t r i e s , " Please see s e c t i o n 2,12 of t h i s

Study. Since t h e organised p r i v a t e s e c t o r of t h e

eccnomy of t h e State has not properly developed it i s

not advisable t h a t t h e S t a t e Government should withdraw

from d i r e c t establishment of i n d u s t r i a l p r o j e c t s .

5.4 C O N C L U S I O N

Benue S t a t e Governncnt i s concerned with t h e

improvement of t h e s tandard of l i v i n g of t h e people

through t h e provis ion of bas ic amenities and

employment oppor tuni t ies . The l ack of i n d u s t r i e s has

made t h e attainment of t h e s e laudable aims d i f f i c u l t .

I n d u s t r a l i z a t i o n i s the re fo re highly d e s i r a b l e i n

Benue S t a t e f o r it w i l l no t only increase t h e revenue of

t h e S t a t e Government but w i l l a l s o c r e a t e employment

oppor tuni t ies f o r t h e c i t i z e n s .

I n d u s t r i a l i z a t i o n of t h e S t a t e is not t h e s o l e

r e s p o n s i b i l i t y of t h e S t a t e Governm2nt. It i s t h e j o i n t

responsibility of t h e S t a t e and t h e c i t i z e n s . However,

t h e Government should do a l l i n i t s power t o encourage

a c t i v e p r i v a t e s e c t o r p a r t i c i p a t i o n by providing good

i n d u s t r i a l c l imate.

The dec i s ion by t h e St:>te Government not t o be

d i r e c t l y involved i n t h e establ ishment of i n d u s t r i a l

p r o j e c t s except s t r a t e g i c i ~ d u s t r i e s i s not advisable a t

t h i s s t a g e of t h e i n d u s t r i c l development of t h e State. should

t h e Government implememt t1i.s dec is ion t h e S t a t e w i l l be

i n d u s t r i a l l y depressed fur t l ie r .

The S t a t e i s i n d u s t r i a l l y backward and hence poor

f o r only about e i g h t i n d u s t r i a l concerns with c a p i t a l

investments i n machinery and equipment worth #250,000.00

and above operate i n t h e e n t i r e S t a t e , and c-,n average i n t e r n a l l y

t h e annual L generated revenue i s about meagre

R40 m i l l i o n f o r the pas t t h r e e years . The i n d u s t r i a l

backwardness of t h e S t a t e is no t due only t o t h e f a c t o r s

h ighl ighted i n t h i s Study but a l s o t o u t t e r neglec t

of t h i s area c a l l e d Benue S t a t e by i t s grand parent ,

t h e defunct Northern Nigeria and i t s parents t h e

defunct Benue-Plateau S t a t e and Kwara S t a t e .

Although S t r u c t u r a l Adjustment Programme (SAP i s

expected t o he lp t o revamp t h e down-turn economy of

t h e na t ion i t s s i d e e f f e c t s on i n d u s t r i e s have been

enormous. Consequently many i n d u s t r i e s being es t ab l i shed

i n Benue S t a t e have been abandoned because of t h e prohibi-

t i v e p r i c e s of imported imputs l i k e p l a n t s , machinery and

equipment. Unless t h z na t ion po l i cy makers take a

second and hard look z t S t r u c t u r a l Adjustment Programme

(SAP) i n i t s t o t a l i . t y , a S t c t e l i k e Benue may not r e a l i s e

i t s dream of r ap id i n d u s t r i a l i z a t i o n i n t h e foreseeable

f u t u r e . F i n a l l y , s ince Benue S t a t e i s r i c h l y endowed

with mineral and n a t u r a l resources i n d u s t r i a l development

i n t h e S t a t e should begcari.."itowards manufacturing and

processing of primary commodities.

It i s t h e s ince re hope of t h e researcher t h a t t h e

f ind ings of t h i s s tudy w i l l be use fu l not only t o t h e

S t a t e pol icy makers and economic planners but a l s o

i n d u s t r i a l promoters, f i n a n c i a l i n s t i t u t i o n s , o ther

organisa t ions and indiv iduals who may wish t o

p a r t i c i p a t e i n i n d u s t r i a l development of Benue S t a t e .

5.5 AREAS OF FURTHER RESEiiKCH

This research has looked broadly a t t h e problems

m i l i t a t i n g aga ins t i n d u s t r i a l development of Benue S t a t e .

There i s t h e need the re fo re t h a t some of the f a c t o r s

i d e n t i f i e d be f u r t h e r explored. The researcher suggests

t h a t f u r t h e r research be conducted i n t h e following

areas:

1 . Financing I n d u s t r i a l Ventures i n Benue S t a t e .

2. Ethnic P o l i t i c s and I n d u s t r i a l i z a t i o n :

The Case of Benue S t a t e .

3. The Role of Incent ives i n t h e I n d u s t r i a l

Development of Benue S t a t e .

4. The Inf luence of g e s t a t i o n period on

I n d u s t r i a l .Pronotel-s.

5. S t r u c t u r a l Adjustment Programme and Indus t r i a -

l i z a t i o n i n Benue S t a t e .

APPENDIX I

EXISTING INDUSTIRES I N EENUE STATE BY DECEMBER, 1986

s / N O . I NAME I PRODUCTS

I .

2.

3.

I 1 Area I I

-

New Nigerian Timber Company Limited

I Benue Brewery Limited

Benue Cement Company Limited

Benro Packaging Company Limited

Makurdi, Makurdi Bott led l age r Local Government I Beer

" I Benue Bot t l ing Makurdi-Makurdi I I Bott led Sof t Company Local Government Drinks

Okura-Olafia, Dekina Local Government Area

5.

/ Limited I Area I

Sawn Timber and Furni ture

Nb-yion-Gboko ~ o c a l Government Area

Mbayion - Gboko Local Government

Port land Cement

Paper Sacks f o r Cement

Benue Palm Products Limited.

-

I Agro M i l l e r s Makurdi-Maburdi I Milled Rice Limited Local Government

7 .

SGURCE: Benue S t a t e 1986 Inswstment Opportuni t ies P.17

Anyangba-Dekina Local Government Area

*The only p r i v a t e l y owned medium/large s c a l e indus t ry i n Benue S t a t e by December, 1986. The p o s i t i o n h a s not changed by J u l y , 1988.

Palm O i l , Palm Kernel

Gyado Foods Company ( ~ i g ) Limited

Makurdi-Makurdi Local Government Area

Bott led S o f t Drinks

In8

APPENDIX I1

MINER+lL AND ,NATUTIfiL RESOURCES OF BENUE STATE

(A MINERAL RESOURCES :

NAME

Coal

- - -

Limestone

Petroleum

Baryte s

Clay ( includir Kaolin)

Wolframite

LOCATION I POSSIBLE INDUSTRY

Okaba, Owukpa, Ozimo Ogboyaga and Odokpoho

Mbayion, Agila and Igurnale

Chemicals - Sulphuric Acid, Animonica f o r F e r t i l i z e r s , P a i n t s used i n S t e e l Industry and f o r dernestic use

Cement, Lime Manufacture concrete works

Elebu, I tobe Ceramics bui ld ing t i l e s and Chemical

-- manufacture

Okogba, Benue I Petroleum Valley - 1 Products I

Benue Valley P a i n t s , ;;emits, Glass manufacture, o i l i ndus t ry , paper indus t ry , Elec t ronics and Metal lur

; Otu!. , ~ o , Akpagede , Sani tary Okobi. Aliade.

Note:

-- -

A r ~ ~ u , Akvai-i::

Odeg L

--- The extent of these n i n e r a l s has ' 'L 1 ' r ca r r i ed out.

Glass Industry and Ceramics Indus t ry , Soap -- Tungster, S t e e l , E l e c t r i c Bulb. manufacture

(B) NATURAL RESOURCES

I - - - -

S/NG. I NAME LOCATION 1 POSSIBLE INDUSTRY -

1.

2

, O i l ~ n i m a l Feeds Milk, Cakes

3-

4. Flour , Glucose, S tarch , Chips, Garr i , Livestock Feeds

Beniseed

Palm Products

Soyabeans

Yams/ Cassava

7 I M i l l e t ,Maize, I

Gboko, Katsina-Ala, Makurdi, Vandeikya, Otukpo and Okpekwu Local Government Areas

Otukpo, Okpokwu, Idah, Dekina, Ankpa and Vandeikya Local Government Areas

~ b o k o , Vandeikya, Katsina-Ala, Makurdi Otukpo and Okpokwu Local Government Areas

Heavily found i n Gboko, Katsina-Ala, Makurdi, O j u , Otukpo and Okpokwu Local Government Areas

5 .

6 .

I E:~o~~d-nuts , I A l l over t h e S t a t e

O i l Extract ion, Candles, Animals Feeds, Cakes

Oil, Soap manufacture

Several Products i ills )

C i t r u s

Coffee (Robusta)

1 and Guinea I I

SOURCE: Benue S t a t e 1986 Investment Opportuni t ies P.15.

A l l Over t h e S t a t e

~ b o k o Local Government Area

Canning f o r F r u i t Drinks

Beverahes

APPENDIX I11

Faculty of Business Adr-hnistration, Department of Management, Univers i ty of Nigeria , Enugu Campus.

30th September, 1988. Dear Respondent,

QUESTIONNAIRE ON llINVESTIGATIVE STUDY OF THE PROBLENS OF INDUSTRIAL DTVELOPMENT - OF BENUE STATE

The Researcher i s a postgraduate s tudent of t h e

Department of Management, School of Postgraduate S tudies ,

Universi ty of Nigeria , Enugu Campus. H e i s cu r ren t ly

engaged i n a research p r o j e c t on IlInvestigative Study of

t h e Froblems of I n d u s t r i a l Development of BenUe S t a t e e t l

The resea rch i s pr imar i ly f o r an academic purpose-

i n p a r t i a l fu l f i lmen t of t h e requirements f o r t h e Degree

of Master of Business Administration (M.B.A.) i n Management,

though i t s f ind ings may be u s e f u l t o your organizat ion o r

o ther organiza t ions and t h e Bcnue S t a t e Government.

Your organizat ion or your goodself has been cho'sen f o r

t h i s pure ly academic exe rc i se . The Researcher promises t o

t r e a t a s s t r i c t l y conf ident ia l and f o r the research purpose

only any information t h a t may be obtained i n t h e course of

t h e research .

Thank you f o r your co-operation,

Yours S incere ly ,

GAE3IEL B.E. ADAH I

SECTION A:

NOTE: Please answer the ques t ions i n the spaces - provided and t i c k good ( J ' ) a g a i n s t the answer(s)

of your choice where appropr ia te ,

1 , Please i n d i c a t e the na ture and name of your

organizat ion

(a) Government Ministry. ...................... (b) P a r a s t a t a l . . ............................... ( c ) Government'owned company,... ............... ( d ) qPZnk.......................................

( 1 ) Commercial

(8 ) Bevelopment

(3) Merchant

(4) Location of Head Office ................ .... (5) Number of branches i n Benue S ta te . . ........

2, Your p o s i t i o n in the Organization

( S t a t e Rank) ..................................... (a) Top Management

(b) Middle Management

(c ) F i r s t Level Management

3. What i s t h e funct ion/business o f your organizat ion?

4. What foundation f o r i n d u s t r ~ l i z a t i o n i n Benue

S ta t e was l a i d by:

................ ( i ) Federal Government?. ,. ... ( i i ) Northern Nigerian Government?. ........... ( i i i ) Benue-Plateau S t a t e Government?. ......... ( i v ) Kwara S t a t e Government? ..................

5. How many indus t r ies did Benue S ta t e i n h e r i t

from: - ( i ) Northern Nigeria ( 1 954-1 967)?. ...........

........ ( i i ) Benue-Flateau S t a t e (1 968-1 976)?.

( i i i ) Kwara S t a t e ( 1 968-1 976) ?. ................ 6. How many indus t r ies a r e operating i n Benue

S ta t e now whose investments i n machinery

and e,quipment \

range from

( i ) W250,OOO. 00 - H5 million?. ............... ................... ( i i ) fi mil l ion and above?.

7. How many o f the indus t r ies i n question 6 above

a r e owned by:

(i) Federal Government?. ............ ... ........ .................. (ii) Benue S ta te Government?.

(iii) Bnue S ta t e indigenos?..... ............... ( i v ) J o i n t l y by Federal /~enue Stnte/other S t a t e

........................ Government ( s ) ... ..

M 3 - I

(v) Jo in t ly by Benue State ~overnmont$~erme

State indigenes.. ....................... (v i ) Jo in t ly by Benue State indigenes/other

Nigerians.. ............................. ( v i i ) Jo in t ly by ~ i g e r i a n s / ~ o n - ~ i g e r i a n a . .....

........................................ 8, What determines the location of Federal

Government-owned industries i n the States?

(i) P o l i t i c a l consideration

( ii) Economic consideration

( i i i ) Policy of indus t r i a l dispersal

( i v ) Other considerations (specify)

9. W hat fac tors a f fec t indus t r i a l development of

Benue State?

Tick a s many answers as you wish,

Inadequate infras t ructure

Shortage inve s tme nt cap i t a l

Rate of ava i l ab i l i ty of entrepreneurs

Diff icul ty i n acquiring indus t r ia l s i t e

Long gestat ion period of indus t r ia l projects.

~ t h n i c pol i t ics .

The methods of implementation o f G~vernment

indus t r ia l policies.

Others (specify)

10. Rank the above f ac to r s in crrder 0.f importance

7th............................................

11 . How do you r a t e the following components o f

in f ras t ruc ture i.n Benue Sta te?

Network of Roads - very good, good, f a i r , poor,

Water Supply - very adequate, adequate,

inadequate, very inadequate.

Power supply - very adequate, adequate,

inadequate, very inadequate.

Telecommunication services - very e f f i c i en t , e f f i c i e n t ,

i ne f f i c i en t , very inef f ic ien t ,

Postal services - very e f f i c i e n t , e f f i c i en t ,

inefficient . , very inef f icment . A i r t ransport services - very r e l i a b l e , r e l i ab le ,

unrel iable , very unreliable.

In w h a t ways does your 'organization contribute o r

has contributed to indus t r i a l development of

Benue State?

(a) Equity pr t ic ipat ion i n indus t r ia l

ventures

(b) provision o f advisory services t o

i ndus t r i a l i s t s ,

( i) Investment advice,

(ii) 1b:anagement advice,

(iii) Technical advice.

(c) Granting of indus-Lrial loans ,.

(d) Other areas (f:\czse specify)

What types o f indus t r ia l loans does your

organization grant t e industrTalists?

(a) Long t e rn

(b) Short term

(c) Overdraft

(d) Others (specify)

What a r e the c r i t e r i a fo r obtaining the

indus t r i a l loans?

Tick as k n y answers a s :rou think appropriate.

(a) Econonically vizble llro j ect . (b) A' dequate co l l a t e ra l

( c ) E vidence of cornpetex..-t namgemont

(d) Others (specify)

15 . Have companies and/or individuals i n Benue

Sta te been granted indus t r ia l loans by your

organization?

(a ) Yes. ............. (b) No .............. 16& If yes, how mny companies and individuals

have benefited?

(a) Number of companies.. ...... and aggregate

am~unt..............~......~............

................. (b) Number of individuals

.................. and aggregate amount,.

.. ( c ) Minimum amount of loan f o r a project..

.*................. *...*.'..........*..*. .. (d) Maximum amount of loan for a project..

1 7. Has the Benue State Government' any indus t r ia l

policy?

(a ) Yes (b ) No. (c) I don't know.

18, ~f yes w h a t are:- (a ) the - objectives?... ....

(b) pr ior i ty areas?. ........................ .............................................. .............................................

19. What incen t ives a re being o.ffered t o i n d u s t r i a l i s t s

who wish t o s e t up manufacturing i n d u s t r i e s i n Benue

S t a t e by:

............................ ( a ) Federal Government?

( i) ........................................... ( i i ) ...........................................

( i i i ) ...........................................

( b ) Eenue S t a t e C',overlnment?

( i ) .........................................*. ( i i ) ............................................

(iii) ...........................................

20. no you th ink t h e F x c n ' t i . ~ ~ . . c mmnt ionnd above a r e

a t t r a c t i v e t o both fo re ign and Nigerian inves tors?

............. ................... ( a ) Yes (b) No

21(a) If yes why does Benue S t a t e not appeal t~ fo re ign . '

and/or Nigerian inves to r s?

..................... ...............,... l ' . . . . . . . . . . . .

(b) If no, suggest some a t t r a c t i v e incen t ives you

may wish both t h e Benue S t a t e Government and

Federal Government t o consider

............................................. 22. Assess t h e con t r ibu t ions of t h e following t o

i n d u s t r i a l development of Benue .S ta te .

(a ) Federal Government ........................... ...............................................

/

...#...#..#..#.................. ......

..............................................

............................................... ....................... ( b a j ~ e n u e S t a t e Government

..............................................

............................................... ( c ) Benue Chamber of Commerce Industry Mines and

Agricul ture .

........... (d) Benue Investment Company Limited

............................................ . .

............................................

............................................

............................................

............................................ 23. Please o f f e r general comments on t h e i n d u s t r i a l

development of Benue S t a t e .

Thank you very s i n c e r e l y f o r your ce-operation,

120

APPENDIX I V

Facul ty of Business Administration, Department of Management, Univers i ty of Nigeria , Enugu Campus.

30th September, 1988. Deer Respondent,

QUEST1oNNAIRE ON INVESTIGATIVE STUDY OF THE P R O B L ~ ~ K I A L DEVELOPMENT OF BENUE STATE

-

The Researcher i s a postgraduate s tudent of the

Department of Management, School of Postgraduate S tudies ,

Universi ty of Niger ia , Enugu Campus. He i s c u r r e n t l y

engaged i n a research p r o j e c t on " Inves t iga t ive Study of the

Problems of I n d u s t r i a l Development of Benue S t a t e e n

The research i s pr imar i ly f o r an academic purpose - i n p a r t i a l fu l f i lmen t of the requirements f o r t h e Degree

of Master of Business Administration (M.B.A.) i n Management,

though i t s f ind ings may be usefu l t o your organizat ion or

other organiza t ions and t h e Renue S t a t e Government.

Your organiza t ion or your goodself has been chosen f o r

t h i s pure ly academic exerc ise . The Researcher promises t o

t r e a t a s s t r i c t l y c o n f i d e n t i a l and f o r t h e research purpose

only any information t h a t may be obtained i n t h e course of

t h e research.

Thank you f o r your co-operation.

Yours S incere ly ,

GABRIFL B.E. ADAH

SECTION B:

QUESTIONNAIRE ;OR I N D I V I D U A L W4NUFACTUR:XNG COMPANIES:

NOTE: Please answer t h e ques t ions i n t h e spaces

provided and t i c k good (; ) aga ins t t h e

' answer(s ) of your choice where appropr ia te .

1. Name of Company.. ............................

........................... 2. Location of t h e Company

...................... 3. Your p o s i t i o n i n t h e Company

(S ta te Rank)

( a ) Middle Management ............................ ( b ) Top Management ................................ ( c ) Profess ional S t a f f ...........................

4. Number of years of se rv ice with t h e Company ........ 5. .What i s t'ne na ture of t h e business of your Company?..

.................................. i................ ........................... 6. What a r e t h e products?..

................................................... 7. The Company is owned by:-

( i) Federal Government

( i i ) Benue S t a t e Government

( i i i ) Fe.dera1 Government/~enue S t a t e ~overnment/Other

S t a t e Government ( s)

( i v ) Benue S t a t e G&vernment/Benue S t a t e indigenes

(v ) Benue S t a t e Government/Local Governments/Benue

S t a t e indigenes.

( v i ) Nigerians/Foreigners

-122 - ( v i i ) Federa l Government/~enue S t a t e Government /Other

S t a t e ~0vernrnt.n-t ( s) /Niger ians ,

8. How was t h e i n i t i a l c a p i t a l o u t l a y t h e company r a i s e d ?

( i ) Equi ty c a p i t a l only

( i i ) Equi ty cqpi ta l /Tcrm loan

( i i i ) Equity c sp i t a l /Tmm Loan/Overdraft

9 . Which f i n a n c i a l i n s t i t u t i o n ( s ) provided

.... ( i ) P a r t of t h ~ e q u i t y c a p i t a l . . ......... ....... ...................... ( i i ) Term loan and/or o v e r d r a f t

( a ) Niger ian Bmk o f o r Commerce and Indus t ry Limited

( b ) Niger ian I n d u s t r i a l Development Bank Limited

( c ) Merchmt n ? n k ( s ) ( s t a t e t h e ~ a n k ( s )

10. s t a t e t h e amount of e q u i t y c a p i t a l and/or l oan c a p i t a l

provided by f i n a n c i a l . i n s t i t u t i o n s .

.................................. ( a ) Equl ty c , ~ p i t ? ~ l

.................................... ( b ) Loan c2p i t31

11. What c o ~ c ? i t i o n ( s ) i s / a y % e a t t a c h e d t o t h e e q u i t y

......... c a p i t a l provided by f17,cincinl i n s t i t u t i o n ( s ) .

....................................................... 12. S t a t e t:1? c o l l a t c r z l i c lud ing guarantee by i n d i v i d u a l s /

Organization(: ;) f o r t h ~ loan c a p i t a l

13. What i s t h e amount of investment i n machinery and

equipment made by your compzny?

( i ) W250,000.00 - WS mi l l ion .

( i i ) W 5 mil l ion and above.

14. What cons idera t ions influenced t h e choice of l o c a t i o n

of your company i n Benue S ta te?

(i) Economic cons idera t ion

( i i ) P o l i t i c a l cons idera t ion

( i i i ) Government pol icy of i n d u s t r i a l d i s p e r s a l

( i v ) Other cons idera t ion ( spec i fy )

15. What f a c t o r s a f f e c t i n d u s t r i a l development of

Benue S ta te?

Tick a s many answers a s you wish.

(i.) Inadequate i n f r a s t r u c t u r e

( i i ) Shortage of investment c a p i t a l

( i i i ) Rate of a v a i l a b i l i t y of entrepreneurs

( i v ) D i f f i c u l t y i n acqui r ing i n d u s t r i a l s i t e

(v ) Long ges ta t ion period of i n d u s t r i a l p r o j e c t s

( v i ) Ethnic P o l i t i c s

( v i i ) The methods of implementaticn of Government

i n d u s t r i a l p o l i c i e s

( v i i i ) Others ( spec i fy )

6 Rank t h e above f a c t o r s i n order of importance

How do you r a t e t h e following components of i n f r a s t -

r u c t u r e i n Benue S ta te?

Network of Roads - Very good, good, f a i r , poor.

Water Supply - very adequate, adequate, Inadequate,

very inadequate.

Power supply - very adequate, adequate, Inadequate,

very inadequate.

Telecommunication se rv ices - very e f f i c i e n t , e f f i c i e n t ,

i n e f f i c i e n t , very ine f f -

i c i e n t .

P o s t a l - very e f f i c i e n t , e f f i c i e n t ,

i n e f f i c i e n t , very i n e f f i c i e n t .

A i r t r a n s p o r t se rv ices - very r e l i a b l e , r e l i a b l e ,

u n r e l i a b l e , very unre l i ab le .

18. What a r e t h e e f f e c t s of SAP on your

( i ) Working c a p i t a l ?

( i i ) Raw mater ia ls?

( i i i ) Spare p a r t s ?

( i v ) Purchase of new p l a n t s and machinery and equipment?

(v) Production cos t s?

19. D i d you rece ive any advisory se rv ices from Benue

S t a t e Government and/or its agencies when your

company was being s e t up?

(a) ' Yes (b ) No

20. If yes, name t h e Minis try o r t h e agency and s t a t e

t h e na ture of t h e advisory se rv ices received......

21. Was t h e advisory s e r v i c e rendered f r e e of charge?

( a ) Yes ( b ) KO

22. If no, how much w a s paid f o r t h e service?.........

.................................................. 23. Has t h e Benue S t a t e Government any i n d u s t r i a l pol icy?

( a ) Yes (b ) No ( c ) I don ' t know

24. If yes what a r e

( a ) t h e objec t ives?

.............................................. (b) P r i o r i t y a reas? . . ..............e..............

25. What incentives are being offered to industrialists

who wish to set up manufacturing industries in Benue

State by: - (a) Federal Government?

(b) Benue State Government?

(iii) ..........................................

(v) .................... ..................... 26. Do you think the incentive mentioned above are

attractive to both foreign and Nigerian investors?

27(a) If yes, why does Benue State not appeal to foreign

and/or Nigeiran investors?........................

(b ) If no suggest some a t t r a c t i v e incen t ives you may

wish both t h e Benue S t a t e Government and t h e 5 6 . .

Federal Government t o consider?................

............................................... 28. Assess t h e con t r ibu t ions of t h e following to i n d u s t r i a l

development of Benue S t a t e :

( a ) Federal Government ..............................

................................................ (b ) Benue S t a t e Government .........................

( c ) Benue Chamber of Commerce Industry, Mines and

Agr icul ture ..................................... .................................................

( d ) Benue Investment Company Limited ..........

29. P lease comment on t h e s t a t e of i n d u s t r i a l ' development '

Benue S t a t e .

Thank you very s i n c e r e l y f o r your co-operation.

R E F E R E N C E S

CHAPTER 1 - 1. Umn 0 . Eleazu,

2. V.T. U 3 i ,

I b id

I b i d

Federalism and Nation - Building - - -->.., - -. *- -- (Great Br i t a in : Arthur H. Stockwell Limited, 1977) P.92.

Makurdi 1982 P.7

Wilfred Eko, W i g c r i a , use fu l Guides11 I k v c l o p n e ~ t Outl-004 Vo1.2 No .4 -I YL --- - October, 19377jp37'-39

The f i g u r e s f o r t h e i n t e r n a l l y .generated revenue f o r t h 2 per iod 1981 .- 1987 were s&>plied by t h e Off ice of

t h e Accountant-Goneral of Benue S t a t e , Minis try of

Finance and Economic planning ~ a k u r d i ,

J. Atom Xpera, 1lThe mcssageI1, Benue ~ n d u s t r i a l

.Development Fund. The speech

de l ivered by Brigadier J. Atom

Kpwa ( r t d ) , a former M i l i t a r y

Govc rnor , Benue S t a t e on t h e

8. Anonymous

9 . Aper Aku,

o c c ~ s i o n of t h e launching of Benue

I n d m t r i a l Development Fund i n

Mak ~ r d i on 29th December, 1984.

i tso-io-Eccno~ic Development of

Rer~ae Sta ten -.,- This i s Benue S t a t e ,

D i r . c t o r a t e of Information Makurdi

P.8 (year of Publ ica t ion not s t a t e d )

nFoilewordff -- Benue S t a t e Today

D i r x t o r a t e of Information Makurdi

Pp, 5-8 (Year of Publ ica t ion not

s t e ced. )

10. Town and Country Planning .kegula t ions , Minis try

of Town and Country Planning, Kaduna, 1962.

11. Ib id

12. Benue S t a t e Trade and Indus t rda l Directory 1982

Op C i t P.73

13. Guidelines For s e t t i n g Up An I n d u s t r i a l Pro jec t I n Nigeria , Nigerian I n d u s t r i a l Development Bank

Limited, Lagos P.22 (year of Publ ica t ion not s t a t e d )

14. Benue S t a t e Trade and I n d u s t r i a l Directory 1982

Op C i t P.73

15. Anonymous, "The S t a t u s of Small and Medium Ente rp r i ses

i n Nigeria" The Nigerian Accountant,

Vol. X V I I I No.3 Ju ly /~ep tember , 1985

Pp .5-6

1. Committee on United Nations I n d u s t r i a l Development

Organization quoted by Ukwu I Ukwu i n a paper

presented on ~IIndus t ry and Budget" a t t h e workshop

on t h e National Budget 1988 Organised by t h e

I n s t i t u t e For Dcvelopmmt Studies , Universi ty of

Nigeria , Enugu Campus, Enugu, May, 1988, Pp. 1-2

2 . D.N. Dwivedi, Managerial Economics

( N e , v Delhi: Vikas Publishing

Hodse PVT. Limited, 1980) p.318

3. Ib id

4. Efosa D. Aiyanyer, N I n d u s t r i a l i s a t i o n and National Development And Its Genesis ... 11

Development Outlook Vo1.2 No.10

Apr i l , 1987 Pp. 6-7

5. Ib id

Federal Republic of Nigeria , Second National

Development Plan, 1970 - 1974 (Lagos, 1970)

P.143

Federal Republic of Nigeria, Third Nat ional

Development Plan 1975 - 80 (Lagos 1975) Pp.149-152

I b i d

I b i d

Ib id

Federal RepuSlic of Nigeria Fourth Nat ional

Development Plan 1980-85 F. I 65

Ib id

Efosa D. Aiyanyor Op C i t F.7

Ib id

Ib id

Eno J. Usoro, uGov~rrment P o l i c i e s , P o l i t i c s

and I n d u s t r i a l Development

Str'ctegy i n Nigeria , 1947-1974"

The Y i w r i a n Journal of Economic -. , . - and Soc ia l S tudies Vol. 16 No.2 " "...- . -- Jul ; 1974 Pp .243-254

Ib id

Benue S t o t e 1ndustr;l: Development: P o l i c i e s and

S t r a t e g i e s t o Enhance conomic Development Makurdi,

1987 P.1

Ib id

kbubakar Abdulkcidir a1 G. K. A jay i : "Prospects of

I n d u s t r i a l i z a t i o n

Under SAP1!

Guardian Financia l

Weekly, Dec. 14,

O.B.C. Nwolise, WIndustr ia l izat ion i n t h e Third

World: A c r i t i q u e of t h e

Fundamentals" Development Outlook

Vol.1 No.10 Apr i l , 1987 Pp.15-20

J i d e ~ s u n t o k u n , 1 ~ I n d u s t r i a l i s a t i o n and National

23. I.J. Igbani,

28. E.J. Nwosu,

Development i n Nigeria: A case

Study Development Outlook

Vol.1 No.10 Apr i l , 1987 Pp.4-5.

@IGrowth and Development of I n d u s t r i e s

i n Nigeria ," The Nigeria Trade

Journa l Vo1.30, No.3 1983 Pp.28-37

Federal Republic of Nigeria , Third National

Development Plan Op C i t Pp.149-152

I.J. Igbani, Op C i t ~p.28-37

O.B.C. Nwolise,Op C F t Pp.15-20

S.A. Aluko, "The Case f o r Rapid I n d u s t r i a l i s a t i o n

i n Nigeria"

The Q u a r t e r l y Journal of

Administration V o l . 1 ~ No.3

Apr i l 1970 Pp.193-215

nPaths and Obstacles t o Technological

and I n d u s t r i a l Development i n

Nigerialt i n E.J. Nwosu (ed) ,

Achieving Even.Development I n

Nigeria: problems snd Prospects

(Enugu, Nigeria: Fourth Dimension

Publ i shers 1985) P.417.

Federal Republic of Nigeria Third National

Development Plan ( 1975-80) ~ p . 149-152

Ib id

E d i t o r i a l , Daily Times, J u l y 8, 1980 P.10

$33 Bala Dan Ubu, WThe Dia&sguett Newswatch Vo1.7

Mo.19 May 9, 1988 P.8

Ubadigbo Okonkwo, "The Challenge of I n d u s t r i a l i z a t i o n

i n Benue S t a t e v A paper presented

by Area Administrator Nigerian

I n d u s t r i a l Development Bank

Limited Bauchi, a t t h e Investment

Promotion Meeting Organised by

Benue S t a t e Minis try of Commerce,

I n d u s t r i e s and Cooperatives,

Makurdi February 12, 1985 P.4.

Alfred Marshall , F r i n c i p l e s -. of . EConpqics

(London: Macmillan and Company

Limited, 1962) P.680.

Dare Babarinsa, ~ i I n d i l s t r i a l i s a t i o n : Peams, Sweet

Dreamst1 Newswatch -- ~ 0 1 . 6 No.4

October, 5, 1987 Pp.34 and 37


Development Plan, 1975-80 Op C i t P.154

C.R. C. Nwolise Op C i t Fp.15-20

Ib id

Ubadigbo Okonkwo Op C i t p.6

Federat ion of Nigeria National Development Plan

1962-68 ( ~ a g o s 1962) P.15

Abubakar Abdulkadir, ; 'Self-Reliance Through More

Determined Exploi ta t ion of Our

Natural Resourcesm

Management Xn Nigeria

Vo1.21 N O . ~ June 1985 ~p.42-51

42 Ib id

Roger Bennett Manaaement Research:

L~PSY, O.B.C.

Guide for institutions and

professionals

( ~eneva, Switzerland; International

Labour Office 1985) P.59 Positive Economics quoted in

Nwolise nIndustrialisation in the Third

World: k Critigue of the

Fundamentals" Development Outlook

Vol.1 No.10 April, 1987 Pp.15-20

C .C. Nwacukwu, Personael Administration:

k Practical Approach(Unpub1ished)

Ibid

F.W. Stopler "The Main Features of the 1962-68

National Plan, ThgJtigerfan.

Jo urn&Lof - .Ecor?ornXs: -md . .- $_ocia l. S-tu.d.ies July, 1962 quoted .in

C.C. Nwacukwu Personnel Adrninistr-

ation: A Fractical Approach (unpublished)

Anonymous, ~hproaches to National Self-Reliancen

Management In Nigeria

Vo1.16, No.6 June, 1980 Pp.65-79

Federal Republic of Nigeria, Third National

Development Plan 1975-80 Op Cit P.152

Anonymous, "Approaches to National Self-Reli.mce

Op. Cit.

This section is based mainly on the article,

industriali is at ion in the Third World: A Critique of the Fundarncntaln by O.B.C. Nwolise earlier quoted

(Reference No. 22)

G.O. Nwankwo, llManager.lent of Limited Resources

For National self-Suff iciency,f l

Management I n Nigeria Vo1.21

X0.6 June 1985 Pp.27-37

P.A. Okuneye, Means of Achieving A Fas te r

Agr icu l tu ra l Production i n Nigeria

(Ibadan: Nigerian I n s t i t u t e of

S o c i a l and Economic Research 1985)

P.37

Nosa Ig iebor , agriculture: Harvest of Fa i lu re"

Newswatch ~ 0 1 . 6 No.4 October 5, 1987 P.24.

O.B.C. Nwolise Op C i t Pp.15-20

Ib id

Nigerian I n d u s t r i a l Development Bank Limited

Guidelines For S e t t i n g U p An I n d u s t r i a l I ' roject In Nigeria Lagos, (Year of Publ ica t ion not s t a t e d ) F.8

O.B.C. Nwolise Op C i t Fp.15-20

Federal Reoublic of Nigeria Second National

Development Plan 1970-74 Op C i t . P .1 .k

I.J. Igbani , Op C i t . Fp.28-37


Development Plan, 1975-80 Op. C i t P. 152

Abubakar Abdulkadir, 0p.Cit Pp.42-51

Christopher Kolade , 11Pcrsonnel Management I n A

M i l i t a r y Regime: Challenges

acd Frospectfl Nigerian Journal

of Personnel Vol.1 No.1 - .-.-

Jr..nuary - June 1986 (New s e r i e s )

Fp.13-19, 29, 39.

.+ 36

a. G.O. Nwankwo, Op C i t . Q..27-37

65. Richard S. Kaynor & Konrad F.Schultz,

I n d u s t r i a l Development : A Pra

Handbook For Planning and

Implementing Development Programmes

(New York: Praeger Publ ishers

Inc. 1973) P.101.

T. Ademola Oyejide,llThe S t ra tegy of I n d u s t r i a l

Development I n Nigeria"

The Q u a r t e r l y Journal of

Administration - Vol.VI11, No.2

January, 1974 Pp.167 - 176

G. 0. Nwankwo , Op. C i t

A. E. Ekukinam, NThe S t a t e of t h e Nation's

Economic and Soc ia l Developmentlf

Management I n Nigeria, V01.16, No.6

June, 1986 Pp. 14-39.

United Nations I n d u s t r i a l Development Organization,

I n d u s t r i a l Development Survey

(volume V) ( N e w York: United

Nations Publ ica t ion 1973) P. 31 . I b i d

U.Ud Uche, "The Law And Transfer O f Technology

i n Nigeria!' Management I n Nigeria

Vo1.13 ~ 0 . 8 October 1977 ~p.15-21.

I b i d

Richard S. Kaynor & Konrad F. Schul tz , Op. C i t . P.113

I b i d P.115

Herbert G. Hicks and C. Ray G u l l e t t , Management

( ~ u c , k l a n d ; Mc Graw-H, i11 I n t e r n a t i o n a l

Book Company 1981) P.149.

E.A .O . Shonekan, Wnlocking t h e Treasureqrove

bevelopment Outlook Vo1.2 No.2

August, 1987 Pp .6-7.

S tanley J. Paliwada, I n t e r n a t i o n a l Marketing

(London: William Heinemann Ltd,

1986) p.48.

United Nations I n d u s t r i a l Development Organization

0p.Cit. P.32

Ib id

Ibid

Peter F. Drucker, Managing f o r Ses\~l.C,s . . . - . .. - . , , - - (London Pan Books Limited,

1981) P.35.

Harold Koontz and Cyr i l OtDonneld,

Management: A systems' and - - .. . . ,. --- Contingency Analysis -.-via ..-- of Managerial

Functions ( Lyko , . Nc Graw-Hill

Kogakusha Limited 1976) P. 81

Abubakar Abdulkadir & G.K. Ajayi,

f IPr<~spects of I n d u s t r i a l i z a t i o n

Un*ier SAP, " Guardian Financia l -.- --- Weekly December, 7 , 1987 P.13.

--A

I b i d

I b i d

S.P. Chu Okongwu, lfRe.view and Appraisal of the

S t i -uc tu ra l Adjustment Programmen,

Buiiiness Times September,, 28, -. .. .-

19U7 P.5.

88. Ib id

WuLcbUnes on the Second-tier Foreign Exchange Markett! Business ,Times September, 29, 1986 P.7.

Abubakar Abdulkadir and G.K. AJayi, Op C i t . (Note 20)

Cent ra l Bank of Nigeria Lagos, ftExchange Rates - Nigerian Naira," 3us iness Timeg September, 5 , I988 P.12.

Abubakar Abdulkadir and G.K. Ajayi, Op C i t . (Note 84)

Wilfred Eko and Lola Davies, "The Economy and

Manufacturing Indus t r ies f l

Development Outlook Vol .I No. 10

Apr i l , 1987 Pp.8-9. Waziri Garba, nNew I n d u s t r i a l Pol icy Approved,"

New Nigerian September, 17, 198 P.1

So ji Akinrinade, I 1 I s SAP The Magic Wand?"

Newswatch ~ 0 1 . 6 No.4 October, 1987 P.64.

United Nations I n d u s t r i a l Development

Organization Op. C i t . P .24.

I b i d

98. I b i d

99. E d i t o r i a l , Sunday Toda!-, August, 7, I988 P.5

100. Herbert G. Hicks and C . Ray G u l l e t t 0p.Cit. P.87

101. Ib id

102. Herbert Awakessien, W?nagementts Role I n Technology

Developmentll Management I n

Nr z e r i a Vol. ?I No. I January, 1985 -. P.17

103. I b i d

1 0 4 . 3 n i t e d Nations Indus t rLal Development

Organization Op.Cit P.24

105. T. Ademola Oyejide, Op C i t Pp.167-176.

106. I.J. Igbani., 0p. cjt. Pi~.28-37

107. T. Ademola Oyejide, Op. C i t . P9.167-176

108. Nigerian I n d u s t r i a l Developncnt gan!; L i ~ i t n d Op.Cit.P.22

109. Renue S t a t e Trade and In.dus%r_i.r?l Directory 1982

Op. C i t . P.73

110. A.N. H:..,!ram, IlThe b k civa'iion t o Inves t and

Locat ional P a t t e r n of Foreign

P r i v a t e Inc 'as t r ia l Investment

i A . ' - 7iZ2 - n. J - pr\-< T r v y - 7 - 1 of . -. Fconomic .- and Si-ntn l Stvdies ~ 0 1 . 8 N O , ~ .* - - - " . ? - .-.- ".--.. M a c , ;C, 5 r7.1~9-65,

113. Pe te r Kilby,

114. Adenike Osoba, . O F , C i t Pp ,!!-I2

115. I b i d

11 6. The Sovereign Budget, :.?ederal ?si .vli~try of Information,

Lagos, -Apr i l , 1961 P,4:!.

117. T. Ademola Oyejide, 0~- . .Ci- t P>.167-176.

1 18. United Nations Industr .&-a1 De; - ..- ,:-A ,i

Organization, OF ' J i t F.3-3

119. Ib id

120, I b i d

O.B.C. Nwolise, Op C i t Pp. 15-20

Ronald Robinson (ed) , I n d u s t r i a l i z a t i o n i n

Eeveloping Countries

( cambridge, England : 1965) P'. 5

Ukwu I. Ukwu, I1Industry and t h e Budget!!

Paper presented a t t h e workshop

on t h e National Budget, 1988

organised by the I n s t i t u t e f o r

Development S tudies , Universi ty

of Nigeria , Enugu Campus, Enugu

May, 1988 Pp.1-2.

.T. Ademola Oyejide, Op C i t Pp.167-176.

S.A. Aluko, - Op C i t Pp.193-215.

Agubude S. Enworom, f l Indus t r i a l i za t ion i n Nigeria"

Ododuma Business Journal No.23

January - February, 1988 Pp. 10,12,

13 and 19.

I.J. Igbani , Op C i t Pp.28-37.

S.A. Aluko, . Op C i t Pp.193-215.

Federal Republic of Nigeria second National

Development Plan, Op C i t Pp .64-65.

141

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Guide f o r i n s t i t u t i o n s and

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(London: Pan Books Limited, 1981)

3 DWIVEDI D.N. Manaperial ---...-,..--... Economics - (New Delhi ; Vikas Publishing

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4. ELEAZU, Urna 0 . Federalism and Nation - Building -- v

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6. KAYNOR, Richard S. ; SCYULTZ Kt~nrxl F. I n d u s t r i a l

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Inc. 1973)..

7. KILEY, Pe te r . I n d u s t r i a l i s a t i o n I n An Open - Eccnomy: Nigeria 191~5 - 1966 -..-.--.- -- - ( Lcndon: Cambridge Universi ty

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KOONTZ, Harold; O'DONNELL, Cyril. Management: A SystenS and Contigency Analysis of Managerial Functions (Tokyo: Graw-Hill Gogakusha Limited 1976).

MARSHALL, Alfred.

NWACUKWU , C . C .

OKUNEYE, P.A.

Principles of Economics (L~ndon: Macmillsrn and Company Limited, 1962).

Personnel Administration: A Practical ~pproach(Unpub1ished)

Means of Achieving A Faster Agricultural Froduction in Kigeria (Ibadan: Nigerian Institute of Social and Economic Research, 1985).

PALIWODA, Stanley, J. International Marketing (London: William Heinemann Ltd , 1986) Limited, 1986).

ROBINSON, Ronald (ed) Industrialization in Developin6 Countries ( cambridge, England: 1965)

UNITED NATIONS Jh7DUSTF IAL DEVELOPMENT 'ORGANIZATION, Industrial Development Survey - (Vo?.. V) New York: United Nations Pub?.ication 1973).

BGCKS AND JOURNAL ARTICLES

1 . ABDUmDIR, Abubakar. "Self-Reliance Through More Determined Exploitation df Our Natural Resources" Management in Nigeria Vol. 21 No.6 June,

1985.

ABDULKADIR Abubakar, A J A Y I G.K.

l lProspects of l n d u s t r i a l i z a t i o n

Under SAPw Guardian Financia l

Weekly December7, December 14, 1987.

ABU, Bala Dan. "The Dialogue --, Newsmtch Vo1.7

No.19 May, 9, 1988.

AIYANYOR, Efosa D. ~ ~ I n d u s t r l n l i w t i & and Netional

Development And I ts Genesis ... 11

Developr2nt Outlook Vol .I No. 10, - ----. ---.-

A p r i l ? 1987.

AKINRINADE, So j i , "1s SAP The Magic Wand?ll

Newswatch ~ o l . 6 No.ll October, '1987. ---- AKU, Aper, flFcrewordll - Renue --. . --. S t a t e Today

-.

Direc-Lo-.~k cf -;-~f crmation Makurdi

(Yu2r cf pcbl5.cati.m not s t a t e d ) .

ALUKO, S.A. "The Case f o r Rapid I n d u s t r i a l i s a t i o n

i n Niger ia , l1 - The . . ...- n u a r t e r l y - ---- - Journal of i lchlnj-s t rat ion Vol. I V No. A p r i l , ..- -.-. -.---- .-.. ---.-- .,

1979.

6. ANONYMOUS,

9. ANONYMOUS,

SL . t e , l t This i s Scnue S t a t e

Di:ectorate of Information Makurdi

(Y; mr of 2ublic:at ion not s t a t e d )

llT1?.:? S-batus of Small and Medium

El kerpr ises i n Nigeria , l1 The .

N i :er ian A.ccount,clnt Vol . X V I I I No. 3 -.. --..--.- --. ,-...-,- . . .-

Ju!.y/~eptember, 198 5.

se l f -Rel iance ," . Mzn3~ement .- - i n

Ni,:eria Vol. 16 No. 6 June 1980. -. -=- -

AWCU(ESSIEN, Herbert, #'Management ' s Role I n

Technology Development 1'

Management i n Nigeria

Vo1.21 No.1 January, 1985.

BABARINSA, Dare. )%dustr ia l isat ion: Dreams, Sweet

Dreams'! flewswatch ~ 0 1 . 6 , No.4

October, 1987.

DAVIES, Lola, EKO, Wilfred, ''The Economy and

Manufacturing Indus t r ies l '

Development Outlook

Vol.1 No.10 Apr i l , 1987.

EKO, Wilfred "Nigeria, Useful Guides"

uevelopment Outlock . - Vo1.2 No .4 October, 1987.

EKUKINAM, A. E . "The S t a t e of t h e Nat ion 's

Economic and S o c i a l DevelopmentM

l.flianagement i n Nigeria V01.16 No.6

, , ,, Jwe , 1980. , , w 0 1 A . , b . -

ENWOROM, Hgubude S. 1 ' Indus t r ia l iza t ion i n .Nig&iatt

Ododum,? 8us iness Journal No.23

January - February, 1988.

I G B A N I , I.J.

"Thr-.McLfvation To:Invest and Losa t icna l P a t t e r n of Foreign

Fr iva te - I n d u s t r i a l Investment i n

, Nizeria" .2The -. -. Nigerian Journal

cjf Economic and .Social Studie -

a; Nigeria Trade Journa l

19. IGIEBOR, Nosa. tlAgriculture: Harvest of

F a i l u r e w Newswatch ~ 0 1 . 6 No.4

October 5, 1987.

20. KOLADE, Christopher. HPersonnel Management i n A

M i l i t a r y Regime: Challenges

and Prospectsu Nigerian

Journal of Perscnnel Vol.1 Noel

January - June 1906 (New s e r i e s ) .

21. KPERA, J , ATOM. "The Message" Benue I n d u s t r i a l

Development Fund. The speech

de l ivered by Brigadier J . Atom Kpera

( r t t l ) a former M i l i t a r y Governor,

Benue S t a t e on t h e occasion of t h e

launching of Benue I n d u s t r i a l

Development Fund i n Makurdi on

29th December, 1904.

22. NWOLISE, O.B.C. f l I n d u s t r i a l i z a t i o n i n t h e Third

World: A Cr i t ique of t h e

Fundamentals" . Development Outlook

Vo1.I No. IO f l p r i l , 1987.

23, NWOSU, E.J. "Faths and Obstacles t o Technological

an6 I n d u s t r i a l Development i n

Nigeria" I n E.J. Nwosu (ed)

Achieving Even Development I n - N i ~ e r i a : Problems and Frospects

( ~ n u g u , Nigeria: Fourth Dimension

I u b l i s h e r s 1985).

24. NWANKWO, G.O. 1'Manaf;ement of Limited Resources

For Natural Self-Suff iciency"

Management i n Nigeria Vo1.21 No.6

June, 1985.

25. OKONGWU, SIP. CHU, lfReview and Appraisal of t h e

S t r u c t u r a l Adjustment Programme"

Business Times ~ e p t a m b e r , 28 , 1987

26. OKONKWO, Ubadigbo, nThe Challenge of I n d u s t r i a l i z a t i o n

i n Benue Statell A Paper presented

by Area Administrator Nigeria

I n d u s t r i a l Development Bank Limited

Bauchi, a t t h e Investment promotion

Meeting organised by Benue S t a t e

Minis try of Commerce I n d u s t r i e s and

Cooperatives, Makurdi February, , I 2

1985.

27. OSOBA, kdenike, "Trade Can Generate I n d u s t r i a l

Frop;ress i n Nigeria" The Nigeria

Trade Journal Vol. 30 No.3 1983.

28. OSUNTOKUN, J i d e industriali is at ion and National

Development i n Nigeria: A Ease

Study" -. ncvelopment Outlook

~ ~ 1 . 1 No.10 A p r i l , 1987.

29, OYEJIDE, T. Ademola,lsThe Study of I n d u s t r i a l Development

I n Nigeria" The Q u a r t e r l y Journal

of Administration Vol .vIII No.2

J m u a r y , 1374.

30. SHONEKAN, E.A. 0. ' lf Lnlocking t h e Treasure-Troven

De~:elopment Outlook Vo1.2 No .2 - August, 1987.

31. UCHE, U.U. "Th? Law And Transfer Of Tech-,

nology i n Nigerian

Management i n Nigeria Vo1.13 No.8

October, 1977.

32. U J I , V.T. llForewordN Benue S t a t e Trade and

I n d u s t r i a l Directory, 1982

Ministry of Trade and Industry

Makurdi 1982.

33. UKWU, I. Ukwu "Industry and t h e Budget"

Faper presented a t the workshop

on t h e National Budget, 1988

organised by t h e I n s t i t u t e f o r

Development S tudies , Universi ty

of Niger ia , Enugu Campus, Enugu,

May, 1380.

flGovernment P o l i c i e s , P o l i t i c s and

I n d u s t r i a l Development S t ra tegy

i n Nigeria , 1947-1974ff

The Nigerian Journal of Economic

and Soc ia l S tudies Vo1.16 No.2

Ju ly , 1974.

1. EDITORIAL Daily Times J u l y , 7, 1980

2. EDITORIAL Sunday Today August, 7 1908

3 . GARBA, Waziri VNew I n d u s t r i a l Pol icy Approvedm

New ,Nigerian September 17, 1900

GOVERNMENT PUBLICATIONS

The Sovereign Budge*, Federal Minis t ry of

Information Lagos, A p r i l , 1961

Federat ion of Nigeria , National Development Plan

1962-68 (Lagos 1962)

Federal Republic of Nigeria , Second National

Development Flan 1970-74 (Lagos 1970)

Federal Republic o f Niger ia , Third National

Development, 1975-00 (Lagos 1975)

Federal Reoublic of Nigeria Fourth National

Development Plan 1900-05 ( ~ a ~ o s 1900)

Guidelines For S e t t i n g Up An I n d u s t r i a l F ro jec t I n

Nigeria , Nigerian I n d u s t r i a l Development Bank

Limited Lagos (Year of 12ubl icat ion not s t a t e d )

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