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Traditional industries
carried out in homes or
in makeshift workshops
include making iron
implements such as hoes
and hatchets, door
hinges, bolts, and dane
guns (firearms of
obsolete design,
originally of European
manufacture).
Traditional soap- and
salt-making workshops
appeared in large
numbers after the near
collapse of the Nigerian
economy in 1983, when
most wage earners were
unable to pay for
factory-made soap and
imported table salt.
These industries
continued after the
economy recovered, but
they were concentrated
in rural areas. Pottery
making and wood carving
are widespread, as are
canework and the making
of bags and mats from
raffia.
While agriculture's
relative share of GDP
was falling,
manufacturing's
contribution rose from
4.4 percent in FY 1959
to 9.4 percent in 1970,
before falling during
the oil boom to 7.0
percent in 1973,
increasing to 11.4
percent in 1981, and
declining to 10.0
percent in 1988. Whereas
manufacturing increased
rapidly during the
1970s, tariff
manipulations encouraged
the expansion of
assembly activities
dependent on imported
inputs; these activities
contributed little to
indigenous value added
or to employment, and
reduced subsequent
industrial growth.
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The manufacturing sector
produced a range of
goods that included
milled grain, vegetable
oil, meat products,
dairy products, sugar
refined, soft drinks,
beer, cigarettes,
textiles, footwear,
wood, paper products,
soap, paint,
pharmaceutical goods,
ceramics, chemical
products, tires, tubes,
plastics, cement, glass,
bricks, tiles, metal
goods, agricultural
machinery, household
electrical appliances,
radios, motor vehicles,
and jewelry.
From 1982 to 1986,
Nigeria's value added in
manufacturing fell 25
percent, partly as a
result of inefficient
resource allocation
caused by distorted
prices (especially for
exports and import
substitutes) and
prohibitive import
restrictions. Between
1986 and 1988, World
Bank structural
adjustment program (SAP)
measures contributed to
larger increases in
manufacturing's
contribution to GDP,
which grew 8 percent in
1988. These measures
included liberalized
regulations governing
the import of capital,
raw materials, and
components; the creation
of import substitution
industries; and,
beginning in 1988,
privatization. The SAP
increased production
efficiency, cut into the
black market, and
reduced factory closures
resulting from import
bans on essential
inputs.
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The Nigerian Enterprises Promotion decrees of 1972, 1977, and
1981, by limiting foreign
ownership shares in various
industries, shifted the
manufacturing sector from
foreign majority ownership in
the 1960s to indigenous majority
ownership in the mid-1970s and
late 1970s. Businesspeople
participated in economic
policymaking, influencing the
government's implementation of
indigenization. "Nigerianization,"
in which foreigners were
obligated to sell ownership
shares to Nigerians, became an
instrument by which a few civil
servants, military leaders,
businesspeople, and
professionals amassed
considerable wealth. In 1985 the
government selectively relaxed
the indigenization decrees to
encourage foreign investment in
neglected areas, such as
large-scale agrobusiness and
manufacturing that used local
resources. After March 1988,
foreign investors were allowed
to increase their holdings in a
number of other sectors
Manufacturing is the second
fastest growing sector after
mining. Revenue from mining has
enabled the federal government
to establish such
capital-intensive industries as
the Ajaokuta and Aladja steel
mills, pulp and paper mills at
Oku Iboku and Iwopin, and
petrochemical plants at Kaduna,
Abuja, and Port Harcourt. In the
past large-scale
manufacturing—dominated by the
production of textiles, tobacco,
beverages, and cement—was
controlled by foreign investors.
The indigenization decrees have
altered the ownership situation,
although the management and
effective control of most large
factories has remained in the
hands of expatriate
representatives of multinational
corporations. The greatest
weakness of this sector has been
its dependence on imported raw
materials. That situation
changed in 1987, when the import
of a wide range of raw materials
was prohibited, although the ban
was later rescinded. This forced
local breweries to substitute
sorghum and rice for barley and
flour mills to process corn
instead of wheat for bread. The
highest concentration of large
factories is in the Greater
Lagos area. Each state capital
has a number of large
manufacturing industries, but a
few major industries, such as
the paper mills and the steel
mills, are located in remote
areas where new towns have grown
up to serve the factories.
Here, we present to you Gurus' of our
land in the Manufacturing Sector!
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