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
Federal Republic of Nigeria , Third National
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
Federal Republic of Nigeria , Third National
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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Labour Off i c e , 1985) . 2 . DRUCKER, Pe te r F: Managing f o r Resu l t s -
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3 DWIVEDI D.N. Manaperial ---...-,..--... Economics - (New Delhi ; Vikas Publishing
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6. KAYNOR, Richard S. ; SCYULTZ Kt~nrxl F. I n d u s t r i a l
Development: A P r a c t i c a l Handbook
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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).
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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).
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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 )