PROBLEMS OF INDUSTRIALIZATION IN NIGERIA

The term “industrialization” emanated from the industrial revolution of 18th and 19th century in Europe. This revolution saw machines replacing human efforts in the production process. And the end product is mass production.

In Nigeria, efforts to industrialize the country began after independence with the first national development plan.

The first national development plan(1962 – 1968) focused mainly on import substitution as a means of strengthening the Nigerian manufacturing sector.

Other focus of the policy were; increased participation of Nigerians in control of the economy, expanding the technological base of the country to support industrialization and so on.

Ever since then, the Nigerian government has embarked on numerous economic and industrialization policies. With the most recent being the Vision 20:2020.

However, despite all these efforts by the government to revamp the economy. And place it on the part of development, Nigeria remains largely under developed and industrialized.

To this end, we shall look at the following factors militating against industrialization in Nigeria:

• LACK OF CREDIT/ACCESS TO CREDIT: This remains the major hindrance to industrialization in Nigeria. This problem is caused by the industrialists themselves, the government and financial institutions.

Most industrialists in Nigeria are unwillingly to share the ownership and control of their establishments with other investors so as to accumulate enough finance to run their business.

This leaves them most companies with little capital to run the business. Hence, limiting their growth.

Also, the stiff requirements and interest on loan of most lending houses in Nigeria coupled with government negligence discourage industrialists from borrowing. And stifles industrialization in the country.

• OVER DEPENDENCE ON FOREIGN MACHINES : Most of the technology and machines used by local manufacturers in Nigeria are imported from other countries. And this machines are usually very expensive.

This hinders potential industrialists from venturing into production.

• INADEQUATE RAW MATERIAL: Due to the poor state of our agricultural sector. The amount of raw materials produced by the sctor for the manufacturing sector is not enough to support massive industrial production. Thus, the manufacturers depend largely on foreign raw materials for production. This hinders industrialization in the country.

• PRODUCTION OF SUB-STANDARD GOODS: Most of the products made in Nigeria are usually substandard. This has decreased the reliance of the masses on locally made goods. Hence, dependence on foreign goods for their satisfaction.

• ILLITERACY/INADEQUATE SKILLED MANPOWER: The illiteracy rate in the country is very high. This problem is worsened by the lack of adequate technical education in our secondary schools and universities. Thus, skilled manpower required for high industrial growth is grossly inadequate in Nigeria.

• LACK OF BASIC INFRASTRUCTURES: This has always being the major obstacle to development. And industrialization in Nigeria. The country lack facilities like good roads, water and rail transport facilities, communication facilities. And most importantly electricity supply. This hinders the progress of the industrial sector. And discourage potential industrialists.

. POLITICAL INSTABILITY AND MILITANCY: Frequent changes in government policies and incessant insurgencies have been a bane to industrialization and development in Nigeria. The Niger delta militants and of recent the Boko Haram group has continuously hindered economic activities in the country. And even discouraged local and foreign investors from investing in Nigeria.

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