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Friday, 14 September 2018

Factors Inhibiting Manufacturing in Nigeria


while responding to the request of the president of the federal republic of Nigeria. For approval to sale N60b bond in the international capital market (ICM), the chairman sanate committee on appropriations.

     Research has shown that no developing country can ever attain the achieved the current developed nations by relying perpetual on external loans but through trade promotion and exchange earnings.

A cursory look at the opinion above with respect to Nigeria's revenue recipets from crude oil sales will tend to undermine this overwhelming source of revenue.  This paradox will lead us to the following questions.

- why is it that huge petrol dollars  (oil minerals revenue ) are not translating into sustainable economic development and social benefits other the citizenry?

What strategic moves should be made to reposition Nigeria and chart a new course for Nigeria's socio economic development in response to the wave I globalization.

The answers are not for fetched apart from the mismanagement and outright stealing of these funds by the people who have access to the corridors of power in Nigeria, the word today is ruled by activities of global compaines, these nations are able to harvest the riches of less developed nations through marketing their products are transferring same to their nations through capital flight. This explains why Saudi Arabia, the country with the greatest oil output I'm the word is not among the top 20 industrialised nations of the world. With regard to chartting a new course for Nigeria's socio economic turn around the magic wand lies with the use of technology to enhance the manufacturing sector.

The repositioning of the industry sector requires an enabling environment which Nigeria lacks. Give compelling reasons why the industrial sector must be salvaged.
- manufacturing is growing faster than the primary sector in total world trade.
- manufacturing is less exposed to external shock, price fluctuations, climatic conditions and unfair competition policies.
- manufacturing is the main vehicle for technology development.
- manufacturing has a pull effect on the other sectors of the economy.
More reasons to warrant the revamping to the industrial sector are:
- the petroleum industry which accounts for 95%of export revenue of Nigeria employs only 4% of Nigeria.
- Technology is the driver of world trade.
- petroleum resources are exhaustible energy resources.
- We are a single product export economy which is determined to our economic well-being.

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