The frequent change of government in nigeria is one of the reasons why the country cannot be developed economically. Which change of government comes with change of personnel, ideas and policies. And no government has ever seen anything good in the programs of her predecessor. Explains why the industrial projects like they ajaokuta steel mill, agricultural programs like the operation feed the nation, the green revolution, the detectorists of food, roads and rural infrastructure e.t.c. could not be allowed to achieve their objectives. The emerging economies of Brazil, Russia, china, and india are able to attract huge foreign investment from Europe due to the stable nature of their polity. Tube address this factor further, it is imperative to note that national integrated power project conceived and implemented by the chief Olusegun Obasanjo has not been funded by the president Umaru Musa Yar'adua administration. In the same vein, most of the privatised government owned firm have been reversed.
Corruption : the oxford advanced learner's dictionary defines corruption as dishonest or illegal behaviour, especially of people in authority. In the world, nigeria is rated as the second most corrupt nation. There is an apparent competition among government officials to steal huge funds belonging to the nigerian people from the treasury. Capital funds that are supposed to finance industrial projects end up in private pockets. The collapse of some banks in 1990 which has eroded the saving culture of nigerians is also traceable to acts of corruption.
Insecurity : nigerian business environment is not a secured one both physical and human capital are at given risk arising from ;
Intolerable religious crisis mainly between the muslims and the christian in the northern part of nigeria.
Attacks from and criminals. This has graduated into kidnapping of prominent men and women including expatriates for ransom mainly in the south east and south south geopolitical zones of the country.
These and other acts of criminality conspired to rock the nation of the much-needed growth of the industrial sector by ; driving away loco, non indigenous investors, traders and workers thereby slowing down economic activities in the affected areas.
Scaring away foreign investors from other countries who have the scarce foreign exchange needed for industrial development through foreign direct investment.
Ineffective leadership : nigeria as a nation has been foisted by leaders who can who can best be described as men and women who display similar symptoms of moral and academic vacuity while in office. The depth and breath of their mtns are demonstrated in their level of in effectiveness and incompetence as evidenced by ;
Inability to articulate a developmental engender for the country.
Systematic looting of the national treasury with nazi fanaticism.
Enthronement of mediocrity fuelled by ethnicity, godfatherism e.t.c.
Raising degree of selfishness, self-aggrandizement et c.
Penchant for missing development target.
Electricity : foundation of the infrastructure needed to drive the industrial sector is the electric power. The local manufacturers greatest sediq is the issue of energy to power their plants. The absence of this has crippled the industrial sector as many factories are closing down, while others are operating at the levels below installed capacity. Many businesses in nigeria spend millions of naira every month to run their generators. This translates into high cost of goods produced in the country. A bold attempt by the obasanjo administration to reverse the ugly trend through the concept of the nigeria integrated power project was frustrated by corruption. The recent probe by national assembly attached to this.
Lending Rates : Financial resources required to stimulate the growth of entrepreneurship is not easily available to nigerian investors. Every business requires fund to finance a capital equipment and working capital full stop in nigeria, the cost and the process required to access loans and advances in the banking industry is anything but herculean. When made available the lending rate is automatically out of place when compared with that of advanced, industrialized and even developing nations.
Cost of Production : dental constraints which hamper the growth of nigerians industrial sector or contribute to the high cost of manufactured goods in nigeria. An example is the high cost of running generating sets to power manufacturing plants, high lending rates, multiple taxation, cost of fighting insecurity, community development cost utc. Against the foregoing is the astronomical overall cost of production which is estimated to be 40% above the word standard. The big question that follows revelation is how the local producers in nigeria will be able to compete with global companies and survive in the international market place.
Policy inconsistency :
Apart from the inability of successive governments to advance and pursue to conclusion projects started by their predecessors, another area where they demonstrate their Emptiness is in the area of policy consistency. Manufacturing and related production activities have suffered so much as a result of the ease with which the government reversed itself when it comes to policy formulation, implementation and control in all facets of the economy. The following examples will suffice ;
The reversal of the policy on the presidential initiative cassava production by the Yar'adua administration. The obasanjo administration had backed the initiative with funding support while encouraging banks and other government and multilateral agencies to drive the initiative through funding support. The new government now allows cassava processed by products to enter the country with import tariff of 20% value.
The scrapping of the cotton commodity board by the Babangida administration during the era of structural adjustment program. The board was placed by an Approved user scheme which made the importation of viscose and polyester yarns a difficult task for textile manufacturers. Meanwhile, describes board was responsible for the growth and sustaining of cotton, which is the greatest raw material for textile and factoring. This development conspire with other factors to kill the textile industry.
A reversal of government policy on tariff for imported truck bus tyres from 40% to 10% at the beginning of 2007, led to the frustration of dunlop india 8 billion naira Expansion project into the heavy truck radical segments of the tyre industry.
The problem that inconsistency in the formulation and implementation of government policies have created the real sector in nigeria is enormous. It has led to loss of financial resources and compounded the unemployment problem in Nigeria.
Domestic trade concessions ;
domestic trade concessions are granted to beneficiaries in form of import duty waiver and other expectations. There is no time in the history of nigeria that these trade policies were more abused than during the Obasanjo administration. This led to the yardhouse administration to enforce a blank suspension order on waivers, concessions and incentives including the export expansion grant. Trade liberalization scheme e t c. enter one implication of import quotas granted to some individuals firms that should be put in the right perspective is the erroneous belief that caters to not affect the rise in domestic prices. When a few individuals get import waivers to import certain goods, it is important to note that the unlimited supply of the product in question raises demand. And since supply cannot equal or meet the quantity demanded, domestic prices will definitely rise. The outcome of the development gives rise to the following ; the few persons or firms who get access to import waivers will rip super profit from sales made.
it will also give impetus to smuggling of products into the country as the price increases.
there will be lots of revenue to the government as tariff is not charged.
When raw materials or spares are involved, the rise in price will translate to increase in overall cost of production, thereby rendering local producers on competitive.
Multiple Taxation : entrepreneurs in nigeria are compelled to pay multiple taxes by the three tiers of government ; local state and federal government.
A. Federal Government .
1. Companies income tax.
2. Withholding tax on companies.
3. Petroleum profit tax.
4. Value added tax.
5. Education tax.
6. Capital gains tax.
B. State government taxes includes
1. Personal income tax.
2. Pay as you earn.
3. Capital gains tax.
4. Pools better lotteries / gaming and casino taxes.
5. Road taxes.
6. Business premises registration and renewal levies.
7. Naming of streets registration fee.
8. Right of occupancy fee.
C. Local government.
Shops and kiosks rates.
Tenements rate.
Marriage, birth and death registration fees.
On and off liquid ladies.
Naming of street registration.
right of occupancy fee.
Domestic animal licence.
Bicycles, trucks, canoe wheelbarrow and cart fees.
Merriment and road closure fees.
Radio television licence and vehicle radio licence.
Wrong parking charge.
Public confidence, sewage and refuse disposal fees.
Customary, burial grounds and religious places permits. Enter sign board advertisement permit.
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