INDUSTRY IN NIGERIA

Manufacturing industry is defined as the industry that is involved in the turning of raw
materials into new or finished product by mechanical or chemical processes at home (cottage)
or in the factory.

CHARACTERISTICS OF MANUFACTURING INDUSTRY

1. Nigeria manufacturing industries rely on imported skilled labour from foreign

countries
 2. Most industries also depend on foreign countries for the raw materials
3. They do not easily source their raw materials from within the country
4. Industries are concentrated in few location especially in urban centres
5. Most manufacturing industries are mainly light industries
6. These industries are also labour intensive i.e they require large labour to operate.
7. Emphasis is on production of consumer goods
8. Their produce are mainly consumed in the local markets.
9. Manufacturing industries are largely small scale

CLASSIFICATION OF MANUFACTURING INDUSTRIES

Manufacturing industries can be grouped into three main classes which are light, consumer
goods and heavy industries.

A. Light Industries:. These are secondary industries which produces relatively light
weight goods such as matches, television sets, fans, books and pencils.
- They employ the services of mainly women
- They produce final or consumable goods
- They are found mainly in tropical African countries e.g. Nigeria and Ghana.

B. Consumer Goods Industries:.

- The industries deal with the turning of raw materials into consumable goods
- They are normally located in cities e.g. Lagos, Ibadan and Kaduna.
C. Heavy Industries:
- They are also secondary industries
- Products are heavy or bulky
- They employ the services of mainly males
- Examples include metallurgical, petroleum and ship building industries
However, heavy industries are commonly found in Lagos, Ibadan and Kaduna
FACTORS AFFECTING LOCATION OF INDUSTRIES

1. Proximity to source of raw materials

- Bulky products like cement should be located close to the source of raw materials
to reduce cost of transportation.
- Perishable goods like fruits should be located near their raw materials
2. Nearness to markets:. Fragile goods like glass, tiles, bulky goods like cement and
other perishable goods should be located near the markets
3. Nearness to source of power:. There should be enough, ready and dependable source
of power e.g. electricity, coal, thermal, petroleum product etc.
4. Availability of capital.
- There should be enough capital to purchase industrial inputs or setup industries
e.g. loans
5. Availability of labour.
- There should be high quality skilled labour and also unskilled labour.
6. Adequate transport network.
- Transport is required essentially to move raw material to industrial sites
- Transport is also required to convey finished goods to the market or area of
consumers
7. Government policies:. This encourages the location of industries.
REASON FOR THE CONCENTRATION OF MANUFACTURING INDUSTRIES IN
URBAN CENTER OF NIGERIA.

1. Large market
2. Availability of labour
3. Good transport network e.g. railway road, etc.
4. Nearness to seaports and airport
5. Availability of finance:. Easy access to loan, from banks located in cities also
contribute to the concentration of industries in these cities.
6. Presence infrastructural facilities like electricity, pipe bore water, telephone etc.

LOCALIZATION OF INDUSTRIES

Concentration of industries in a particular area in economics is referred to as localization of

industries.

ADVANTAGES OF CONCENTRATION OF INDUSTRIES

1. It leads to inter-dependence of industries

2. It creates employment opportunities
3. It also leads to mobility of labour
4. It leads to the provision of social amenities
5. It encourage healthy competition among industries
6. It leads to inventions and innovations due to completion
7. It leads to the development of organised market e.g. cooperative societies
8. It leads to the attraction of subsidiary in industries in the area.

DISADVANTAGES OF CONCENTRATION OF INDUSTRIES

1. It lead to congestions in traffic, industries and housing

2. It can lead to shortage of social amenities
3. It causes uneven development especially in areas where industries are not found
4. It can cause structural unemployment due to low demand for industrial goods
5. It can escalate crime rate like armed robbery, car snatching, kidnapping, etc.
6. It can cause environmental pollution due to the presence of many industries
7. The area is made the target of attack during war time
8. It also leads to rural-urban migration
Map Showing Local (cottage) Industries in Nigeria

THE NEED FOR ESTABLISHMENT OF INDUSTRIES IN RURAL AREAS OF NIGERIA

1. Development of rural areas

2. Discourage rural-urban migration
3. Provision of employment to skilled and unskilled labour.
4. Increased production of goods
5. Increased earnings for rural people
6. It also encourage urban-rural migration

IMPORTANCE/CONTRIBUTIONS OF INDUSTRIAL SECTOR TO ECONOMIC

DEVELOPMENT.

1. Increase in Gross National Product (GDP):. Industrial sector through its operations
like payment of taxes, increases the earning accruing to the nation.
2. Employment opportunities
3. International trade improves trades balance:. Most of the products of manufacturing
industries like machinery are usually from western nations. This forms the basis for
international trade and improves trade balance between countries
 4. Stimulation of other sectors. E.g. Agriculture, mining, lumbering, etc.
5. Control inflation due to mass production:. With modern technology, products like
cars, machinery etc. can be mass produced. This can help to reduce inflation.
6. Infrastructural development e.g. road, electricity, pipe bore water, etc.
7. Diversification of the economy:. The industrial sectors help different countries to
prevent over dependence on only one product like the present Nigeria’s over
dependence on crude oil. If Nigeria can invest in the industrial sector, her economy
will in time be diversified.
8. Man power development
9. Funding of education and research.

LOCAL CRAFT (COTTAGE) INDUSTRIES IN NIGERIA

Local craft or cottage industries are those types of industries that depend mainly on raw
materials obtained from their immediate locality. This local craft industries includes

1. Leather work. Eg. Sandals, Handbags, etc. They are mostly found in Kano, Bida and
Sokoto.
2. Wood Carving:. This is done in Ikot Epene, Uyo, Oyo, Benin City etc.
3. Brass and Silver Works:. These are done in Bida, Benin and Kano.
4. Ropes and Mat Making:. These are done in Akwete, Okene, Kano, Iseyin.
5. Pottery and Glass Making:. These are done in Ikot-Epene, Bida, Ilorin, Delta, and
Calabar.

FACTORY OR MODERN MANUFACTURING INDUSTRIES IN NIGERIA

1. Western Industries Zone:. The zone is located in the western part of Nigeira, Otta,
Abeokuta, Epe, Apapa, Ewekoro and Osogbo
2. The South East Industries Zone:. This is located in eastern part of Nigeria such town
include – Nkalagu, Onitsha, Port-Harcourt, Enugu, Aba, Owerri and Calabar.
3. The North-Central Industrial Zone:. These zone is located in the Northern part of
Nigeria. Industrial towns include Kano, Kaduna, Jos and Zaria
4. The Mid-West Industrial Zone:. This zone is found in Edo State, and Delta State
which is also located in the west of River Niger. Industrial towns include Warri,
Benin Sapele and Ughelli.

PROBLEMS OF MANUFACTURING INDUSTRIES

 1. Shortage of raw materials
2. Insufficient capital
3. High degree of foreign dependence
4. Poor quality of industrial labour
5. Inadequate power supply
6. Competition from foreign goods
7. Shortage of entrepreneur
8. Poor management
9. Political instability

SOLUTION TO INDUSTRIAL PROBLEMS

1. Acquisition of skills
2. Good government policies
3. Active government participation
4. Incentive to local industries
5. Provision of transport facilities
6. Creation of industrial zone
7. Establishment of industrial banks
8. Stable government