Industrial development and technology: the case of Nigeria

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UNITED

~ATIONS

REPRODUCTION/09/üQ:

AFRICAN INSTITUTE FOR ECONOMIC DEVELOPHENT AND PLANNING

D A

K

A R

INDUSTRIAL DEVELOPMENT

A}ID

TECH}TOLOGY

THE

CASE OF NIGERIA

BY

UKUWU I. UKWU

Distributed for:

!HIRD-MONTH PROGRAMME IN DEVELOPMENT AND PLANNING

FIRST TERM~ 13

NOV.

1981 -

29 JANUt.iliY 1982

COURSE: EVALUATION OF NATIONAL lNDUSTRIALIZA.TlON. EXPERIENCES.

IN AFRICA

MA.RŒl 198%.

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REPRODUCTION/09/82 Page 1

Students· of the process of d·evelopment no"' e(o)~ i t in t.erms not 'of a dicho·tomy between less developed and developed countries but. o.f transition from one state to the other₉ a transition marked by .a s.et of struciur'al changes in the GDP correlated ·. wi th the growth of per c·api

ta

:inc-ûme. Thus an observe& gene·ral trend ha·s beim a pro-gression in the a:Hocatïon of labour 'froni· prinïary to-:·secondary to tertiary eniployi:ilezi't in the· course of economie developme·nt₉ and chenery and.:

syrquiii

(1975)

have identified speëific shares of indu.stry in the Gross Domestic Product wi th levels . O"f · per tapi ta income. , . , .

'While the.historic importance of ·industrialisat ion in the deve- lopment process is generally acknowledged₉ there is no agreement as

to

what role and priority s. ould be assigned t o i t in the development strategy.of poor countriés. In a èlear if over-simplified s~atement of the-classical western economi st' s po si tion₉ Bryce· (

1966)

enumera tes what à:re consider-ed the impoi:-iant motives for industrializationg · ; to increase·s national income; to · improve stàbili ty of foreign·. exchange

·earning through import substitution; to secur e full emplcy...'nent9 and t o

'expand the inarl{e-t for local raw materials. He goes on t o castîgate

às · urisou:n.a ·

'poiitically irtotivated' projects·aimed atachieving a t.ie;b level of self-sufficiency9 thereby con'flicting with "the more universel principl& that every country will gain if i t mal~es things on wb.ich i t has· a relative cost advantage and trades them internationally to pa.y -for products ·in which othe·r countries have a relative cost advant.age."

P...:ccordingly ne sees

as

unrealistic any expectations of a predorninantly industri'al' future for many undeveloped countries, especially the small on es·•

But' to 'focus the argument on the .maximization of .commercial benefi ts

unde:r t1f:é'-e'xïsting world order is to miss the c:d ti cal point about

developrrient• Tf ever we are to attain·standard of well-beine; comparable

1 ' • .

· to tho se oT'the' develôped countrièfJ 9 urider conditions of poli tic al

autonomy and quali ty, our output of goods and services must reaci:c. similar levels. We are therefore concerned with transforming our total capacity t o produce.

REPRODUCTION/09/82 Page 2

The basic ;limitation to this capaci ty is. technology. In physical reE;Jources ·many developing countries. are nm.ch_ better endewed than many developed countries. Population densities span the normal range. But the use of ma11power in production resolves itself into labour and

technology. Economiste who write of "labour-surplus" economies evidently regard the manpower of these economies as a source primarily of the

mechanical energy named labour. Manpower offers surplus labour because it does not have enough t.echnology- scientific knowledge and·technical skills. Yet it is only by more and better technology that we can

expand our range of choice on what to produce, and use energy in all its forms for the exploitation of physical resources for greater and more efficient output.

We do· not kno:w of any basic inferiori ty in the natural endovrment of learning ability in the populations of developing countries. The existent low level of knowledge and skills derives largely from limi- tations in the access to these resources and the incentives and

opportunities for their use. The critical operation is therefore the provision of access? resulting in the massive benefici~tion of ''surplus labour" low grade manpower into 'technological' skilled ar;td productive manpower. The critical question is bow to do this.

Countries at 'the sorne general level of economie a;nd technological development can well afford to make marginal adjustments among them- selves? based on relative factor proportionEq consider? for example 9

Belgium and the Netherlands. But no. one argues on the basis of relati~e

development between the US and the USSR over a number of technological fields that each should concentrate on those technologies in which it has more resources invested9 on the contrary, every nerve is strained

to bridge the gap in every lagging sector. P.,nd the economie history of the world would have been quite different if Japan bas stuck to the production of these goods for which it had a 'comparative advantage'

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in .. by ^{. o .} In

the its the

EEPRODUCTION/09/8~

Page

3

19th century9 or ₉ for that matter9 Britain those indicated Neolitic factor proportions relative' t~ those- pharaonic Egypt . war against human inequalities, the battle against technological inequalitl.es cannot be compromised.

Industrialization should tberefore be regarded as a _Jro'cess of internalizing moder~ technology, of equippi'ng developfng countries

with

:t

h e

tool,s' for

op ti~ising

^{the use of t heir}

resourte~

^{for the} satisfa-ction of the needs of their pop.ttlations.

1 . THE

STIUCTURE OF NIGERIAN

:INDUSTRY.

1.1. Growth Patterns

Industriel production is not new to Nigeria. In the ure-colonial era craft industries were. hig ly organised9 usually. in specia.list

communi ti es and ofte.n under sta.te control. They wer.e associated-> wi th the evolution of a complex net\vorlt of rommercial~industrial centres and trede links and routes integra ting pot only the poli tie.s and socie- ties in the present geographical area 0f Nigeria but the entire West African region. (Eopkins

1973) .

The most important industriel products entering into international trade were textiles and leather goods, metal imp,lements9 gole and

jewellery. Centres for wood working~ pottery and food processing were more widespread and susteined more localized activity. Althouf:Sh craft

industries have been severely dainaged

by

imported ·mail:~Ifactures, sorne indication of the importance of this heritage is ~ive:n by the contimü nr;

importance of

tœ

ir contribution to both GDP and einployment. Thus for 1950 Prest and Stewart (1953) valued the

ou t p1.-t' t

o.f c·ra:ft :lnd~otrie s

at 1.Itz% of GDP. The 1963 census recorded 300,000 hand spiners, 70~000

blacls:smi ths, 38~ 000 glass and pottery workers, and· 26,000 shoe makers and lèather workers. An today~ tradi tiohal crafts amount fo'r a signi- ficant proportion of small scale industries.

REPRODUCTION/09/82 Page ~,

Up to the end of the !;jecond world war the dominance of European commercial interests inhibited the establishment of modern industry.

Only a small g:roup of agricul tural proces·sing and ;forestry products tri butary to rather than competitive vli.th British industry were

established, and modern manufacturinr~ _- contributed in all less than _:1.•" _2,.

of GDP.. Imme~iately after the war, the entry o:f new classes of entre- preneurs, especially Levantines and indigenous traders, forced the

British compa,nies to begin local manufacturing to protect their consuawr markets, The new entrants pioneered develcpment in new field especially export processing (groundnuts, tin metal mannfacturing) and furniture. With the political developments of the mid-fifties, Governments,

increasin3ly under nationali·st control laid more emphasi:s on :indust-

'iall~&tion~ a development reflected in the increased share of the industriel sector in successive development plans,

The growth of output has 'been pa.rticularly ra.pid since

1960,

a eompound annual growth ate of 12.2% being achieved between 1962 and 1973. Today manufacturing contributes sorne 8~b of Nigeria non- oïl

GDP. I n

relative terms9 this is quite low in West Africa9 beine;

rather less than half the levels in Ivory Coast and Seriegal and below Upper Volta, Niger, Mali and Ghana.

(UNASY 19'75).

1.2. Industriel Structure

Nigeria's industrialization has focused on a. narrow range of consumer products to the point of self sp.f'ficiency. The leading industries are the low technology industries₉ particularly food

processing and textiles. (Table III) l'letal and Engineering industries

. are very poorly represented and doing badly9 their contribution of

12.4% of manufacturing value added in 1972. was 2~~ below the performance

. '

for

1965 . ·

The manufacture of machinery and equipm.ent ha.s become S·ignificant ·Jnly .in the 70s. H.owever, wi th the planned investment of

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R EPRODUCTION/09/82

Page 5

23% of the current plan industrial expenditure in the metals and

. .·.·. . ^. . ^-; . .

machinery indu'stries and in particular

if

'the iron and' steel project is cmn_ leted

o ' n

^schedule9 there

- ~houl d

^{be rap:id development} in th.ese sectors. Intermediate goods.9 • especialli in

th ~

^hit;h technology areas are also very weakly development9 basic industrial chemicals9

fertilizer~

'and pesticides contrï butine' only 0.2% of value added by

. . . .

manufacturing.

.1' • • •

On the basis of a cross sectional analysis of country profiles9

the a:uthor~ ·of the }rd Natio~al Deveiopment ;fil. an derive a number oi

' . '

'indu~tries v!hose shares

of

^nroductA ^{i on fall below no}' ^{rmative shares}

con'é'istent.

wi

^{th Nigeria 1 s putative stage}

of:

^{development. The se}

:i..ric'ludè food products ⁹ footwear ⁹ indu s'trial chemicals ⁹ products of

. :' .. ,-, .. : ~ .-

c'oal and petroleum9 pottery₉ chine₉ earthwate9 iron and steel basic

' . . . . . ^. :. ;: ^,. -'·

industry₉ ri'ori-ferrous metal basic industries and trans:;;wrt equipment.

But the refereàce norm itself 'relatés necessarily to a b.istori- cally imposed structure of under development which i t is the task of th~

new

international economie order to transform. It does not there-

·:fore.properly provide the strategie targets for the new order.

1.3.

Investmerit P~tterns

Futur~ industriel. development depends very r:mch on. new inveE,~tmer,.i

decisions. Table IV shows the contrasts in the investment behaviour patterns of the major participants~ ti1e Government 9 the foreign investors and indigienous small-scale indust riali sts. Government is now .the P!,incipal investor in Nigerian Industry, accoun:tine for 62%

of the. Gross Fixed Capital Expendi ture for ind'!-lstry in 19.7~. Direct investment in industry acco~nts for- 87.4% of the Governments indu.strial programme du,ring the 3rd Plan. period (Table

V} .

The emphasis is on Petrophemicals and. Basic N:etals₉ ^.. wi th Sue;ar,: Cement and Paper as tb.e other areas of .heavy. investment. Another 0.2% of the programme is

I-ŒPRODUC TION

109182

Page

6

for assistance to

private industry~

with less than 1% earmarked

fo

r small-scale

industr

y

. Research

, devel

opment

, traini ng a

nd extensio~

services together

account for

on

ly

~.5%.

From

_

t

h

e point of view

of

overall

cleveloprnent,

t

h

e mos

t

t

a

c

ti

c

al

area

of

gov

e

rnment investmen t i

n Basic .Hetals

and.

Eng

i

n

eer ing I

ndu

s

try, es

pecial ly t

h

e Iron and Steel

complex~ a 1 mi

lli

on

tonn es

blast

furnace and two

dir

ect reduc

t

i

on process furna

ces w

h

ich will

provide

t

h

e iron and steel for constru ction, n

ach

i

n

ery

and

to

o

ls industries.

Rowever9

t

h

e total

p

lanned c

apa

city , at

2.5m

tonnes

is

sho rt of t

h

e

..

estima te

d 'normativ

e' demand

by

30%

and wou

l

d b

e

e

r

o

ssly inade

quate

for

a

str

at

egy of to

tal

transformati

on of e

conomie stru ctu re.

The

investment in chemical products

, f

inan c

ially

t

h

e

mo

s

t

massive_

,

i

n

clude s oil re

fineries,

fertilizer

plants

an

d

LNG,

providi

ng

basic inpu

t$ for transp ortation

9

agricul ture and manufactur i

ng

, Other areas

of h

eavy investmen t inclu d

e

cement,

pulp

and

pap

er

₉

sugar

ref

i

ne

ries.

The Federal

Government

is respon s

ible fo

r

94%_of

t

h

e Indu s

t

ri

al

Pro

gramme9

and is solely

responsi~le

fo

r

t

he m

a

jor

sect

ors.

Stat es

are

involved in a wide variety

of

consumer i

ndu

strie s

9

esp ecially i

n FoO(~

Proc

essinŒ9

Textiles and c

onstruction mater

i

a

ls.

However9

states

have greater respo

nsibility f

or

encouragi

ng

sma ll-scal

e

indu s

try

-

credit schemes9

e

states

and Layout

-

and ar

e

active

on

t

h

e

ground i

n attr

actinc

M and servicing.Federal Government and foreign investmento

A

frica has

no

t been a

p

riority tar

get

of

fore

i

gn investment. In

1971

9

it account for only 12%

of

all MNC i

nvestment

in less

development countries.

Am ong

A

frican coun tries

₉ h

o-v.rever

₉

Ni

geria has

tradi

t

i

onally

b

een

a

favourite

heaven of foreign i

nve

s

tment,

acc

ounting

for

31% of

t

he

t

otal

(Eood 1975).

B

y

19739

the

value

i

nve

st

ed

amount ed t

o 54% ol

t

h

e total

fo

r West

A

frica

(Rood

1976)

9 up from 4A%

i

n 19)8

(Franke

l

1966). With the sh ift

'of

emphasis from trade a

nd

trans

port t o

manufa c- turine and mining

9

manufactur ing ac

c

ounted f

or 23% of total for

ei

en

. .

REPRODUCTION/09/82

Page

7

priva.te investment in

1973

9 up from 19.1~S in

1966

(Ndiomu

197lt ).

Relative to overall indus·trial':inves-tment :9attern's ₉ foreign invcstment emphasies 'food₉ drink and toba6co· (Table V)~

Foreign investment has been urider ·st::dct ref:;u_lation since

1973

whcm t:he Nigerian Enterprises Pt-omotion Decree ~Nas promulgatêd₉

excluding foreigners from equity participation in· certain busineoses and restricting their share in others. This has drastically chaneed

·the owne·rship structure of Nigerian industry. · But the objectives and methods of foreign ..:. associated industry remain largely unaltered. '

Government i tself is no"' the major partner wi th foreign firmà in· a

; .. w ho m

^{range of indu}stries - motor vèhicle assembly'₉ .bre~eries

9

^textiles,

cemen.t. But the r·ellii.tionship is so structüred. as to neutralise the Governments impact on policy and operations. In each of thè major industries, the Federal and State Gover~~ents directly or througb

· .parastatals and agencies ·are in separate, so'metimes competitive, partnership arrangements with multinations on à-plânt to plant basis.

lt/hile the multinationsls foruiulat e and co-ordinate their Nigerien .activifies in the l ight of their global corporate stratèe;y9 Nigerien

participation effectively ends at the Board levèl.of the individuel f irm, and by defaut, the individual firms profits become the ma1n pobH :of r~ference for Governmerit - involvement. The use of emin~nt p~~vatc

persans as Government directors and Chairman ensures th·at other links with Government policy remain tenuous and fraementary.

The modern Nigerian entrepreneur d'évelop.ëd ·at· th~ '·bàsè of the '

three-tiered hierarchy

of

economie poHer and control ₉ at the a:!:Jex of which \.1as the NNC wi th entrepreneurs from the i:1iddle East and the

Indian Subcontinent in the middle. The 'Nï geriari ·businessman oft en 'bege.::.1 as a factor or agent of foreign enterp:rises,- and \;,ere dependent on

them for credit ₉ supplies and techni cal· support·.. The entry of Nie;eri-:1:::.

REPRODùr.TION/0 9/ 82

Page 8

businessman into industry is inhibited by a number of factors~ the lack of technological know how, poor ·access to foreign sources of inputs, the relative greater attractiveness of more profitable and quicker yielding trade, transport and construction sectors, weak f inancÎàl base for lone-term investments.

B y t965 ,

Nigerian private investment amounted t o 12% of Paid-up'capi tal in Nigerian Manufa.cturin.z industries (Schatz

1968).

Indigenous activity tended to concentrate on low-capital, low- technology9 labour-intensive industries - textiles and clothing,

printing~ furniture, food milling, mechanical and electrical repairs.

Befor e indigenisation, only a few had broken into large-scale manufuc- turing. Under the indigeni~ation policy equity control or participa- tion in scheduled industries has now been acquired by Nir;erian share~

holders, thus extending the range of indigeneous involvement. But effective manage of many such industries remains Ï irmly in the hands of the foreign "technical· experts".

Today, between the Governmènt and the Nigerian private sector , Nigeria has assumed formal control of the industry. But deliberate polici es are required to restructure the objectiveé, procedures and relationsb.ips of industry to reflect Nigerian needs, t o make foreign involvement tributary to.rather than determinant of national industrial development.

1.4. Small-Scale Industries

hccording to official estimates for

1975 ,

in the non_.agricultnral sectors of the economy there were employed sorne 8.5 mi l l ion in small- scale establishments as against 1.4 million in medium and large scale

(FNR

1975) .

^{It has also b}een estimated that small scale industriel establishments out~number medium and large scale establishments in the

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R EPRODÙCTION/09/82

Page

9

ratio of 70g1 i n our urban centres (m{wu 1977) . Bein

g

h i ghl y res ponsi ve

..

t o l oèal circumstances

9

t he p atterns

of

ihvestment

indicated

under-li ne bo th the structur e

of common nèeds

and the relative devel ôpment of

. ^' . . . .

industriel tec~nology

among t he general

population.

Tex tile and

clothine;

lead

'with

55 % esta

blishments and 23%

of cap ital

investmentg

metal w or

k

and Iilèchâ:nicai/electrical re pai.r s

aècourit . for

~6t}b

^.of-

e~tablishments

^and

42%

of investment.

The t h ird

major

area is

\olOOd product~

and _

·furni t~re

.,

with 12% establi shments and

15%

of investmen t

.

Food

processing

and

chemical products are

v er y poorly

developed. Two

po i nts call for special

atten-

tion.

The

high dev elo pment of the metal products an

ma

ch inery sec to r

t~lativ~ to

t

h

e med ium and lar ge-sc

aie

es tab lis

hment

i ndi cates t he great

potEmtia·

l

for upg

ra ding existi ng sk ills

for tl~e

d evelopm ent

of

viable modern metal \o/ork i ng and

machine

to o ls

industriesv

vhile t

he. weak

deve

- lo

p•ent

of

fo od

pro

cessing

underliti~s

t he

genera

l i nsulta tio n

df

the agricultu r a l ec onomy fr

om moderri

techn ol

ogy₉

and the need

for

t h e de li-

. -·.

berate co-or dinatio n of industrial

and

agricultural dev elo pment po liéieo

•

2. REGIONAL DE\:JLOPHENT

2.1. Niaeria's

Geop~litical Relationships

Geopoli

i:;ically

N'iger ia

_o~_<:_upie.~---~ _ ~:t:Ea:tesic~_PO.!~ :ti<!.al .PQ.

$i ti.on. in

Africa.

The

· area

has fr om hi- storie ti m es be en

th

e major

· c-ross-roads of

Af rica

9

cul t ur ally and economically. The boun dari e· s of. seven of

the major

langua ge s ub-famili es

of

A frica m eet

wi th

i n

. i t; and ·

t radi ti onal

poli

tica:I an d econ omie

~·elationships linl-c

i t

.

with

the

sur

-r

ounding

·areas

and

t~cross

t

h

e continent. While col onial

developnient

fragment€cl

and

disttirbed t h ese

relationshi

ps

,

the new an-d

growine;

awa rertess

of an

Afr ic

arc.

identity and t

h

e

need for

self-sustai-riing

₉

i n t ernall

y relevant

d-eve l op - ment

calls

fo r

the

for go ing of

new

linl.1: s an d

the

èxp

an

s ion

of

t he

scope for int~raction and coo

p erati ort

amon~ African countriés.

,,

REPRODVC~ION/09/82 Page 10

In Africa's regional grouping~ Nigeria belongs to the West African Region~ a region now reaching •ut for functional union under the Economie Organisation of West African States (ECOWAS). But the countries qn its Eastern borders although regarded as belonging to Middle Africa interact considerably with

it

9 a relationship already formalised in such regional organisation as the La~e Chad Basin Commission linking Chad₉ Cameroon.t o Niger and Nigeria.

Nie;eria contains 16% of .·the population of Africa and 54% that of its West African resi on9 its internai geography mirrors the general W~st African pattern9 with the succession of ecol ogical regions frog Southern coastal forests t o the Gehara₉ the mul.tiplici ty of ethnie.

groups9 the concentration of modern ,qevelopment about the major ports and the export enclaves and corridors. The politicel division of th~

country into

19

federal states with a size range comparable to that of other West Dfrican countries continues the r.:'9.ttern₉ underlining in much the same way the problems of regional development on a sub-conti- nental scale.

2.2. Industrial Location and Internation üi West P..frica

Weak economie integration and strone regional inequaliti~s are two major problems of development in the Third World, both wi thin indivi- dual countries an.d among countries in the same regi onal group.. Dual_.

istic colonial development has left a heri te.ge in the continuing ·

Cleavage and dissociation between the urban centres and the rural:; areas9

and between the export-economy enclaves and the ¹residual¹ majority producing mainly for the domestic market. 'l'he location of industry reinforces tne spatial structure of economy₉ the patterns reflecting the •patial requirements of the various industries in terms of access to inputs and markets. ~ sound industrial location ·policy can therefcre be a powerful instrument for accelerating regional integration and even development.

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REPRODUCTION/09/82 Page 11

A.l th

ough in. terms of indus trial shar e of GDP, Nigeri' a is less industriali

zed than many 't'lest Af:r

ican c

ountri_

es,

-

the country account

-for

5l%

^of

^t

^h

^{e value}

^{of indu}

^{s trial out}

^{put. _}

^{Ivory Coast,} Ghana and

Senegal contribute anoth er

~4%

(UN 1974) .

From

the s

pat

i

al po

int of view, the cap ital of

th~

four leading

₁

c

ountries

- Lagos

9 Ab

id

j

an, Accra an

d Da]m

r are the princi

pal po

l es

:of

i

ndu

str iel

growth

. While Lagos owes its

position almost entirely to

Ni

ge

rian

intern~l

ec

ono

my,

Abidj~n

an

d

Dakar

h

ave developed considerable

tra~e

with other West Airican countri

es.

24 other cities rec

ord

a fair concentration

of

indu stri

e

s. They include 8 nati

onal cap

i tals

~ Porto

Novo

9

Lomé, Cona! -:ry,

Mon~ovia, B~mako,

Niamey, Freetown, and Ou a

gadougou

as well aè s

ome

sub~regiorial

centres such as Coton

ou in Ben

i

n9

Sekon di-Ta

koradi9 Taoalo

and

K

umasi in_ G

hana9

Bouaké in Ivory C

oast9 Bobo Pio

lass

o

in

UppQr

Volta

9 K

aolac

k

and St. Louis in Senegal

and Ib

adan, Enugu; Benin; Port

Harcourt, Aba

, Onitsha, and

Kaduna in Niger

i

a

. In 3 state cap itale

~

Ban

jul

,

Bissau and

Nouachott

₇

indu stries are still

poo

rly develop e

d

.

The distribution of these âla

jo

r in

du

striaJ

-·--

ceri- tres underlines t

he

di~torted pat

tern of development.

La~ge areas o~

West

Af~ica p

artic

u-

larly in t

h

e middle

Belt Guinea Savann

ah

beine;

remote fr

om and centres

of indu si;rial activity, and isolated fr

om

its ef

fect

s. Yet, t

h

e wealth of a

gricu

l tural and mineral output throughou t

\ri

est

: Af

rica

₁

incl

uding

an abundance of industriel metals and

en

er

gy₁ provides a

ric

h

materie

l

base f

or

more widespread and c

o-ordinated deve

l

opment.

Table VI summaries t

h

e orientation

of

12 West African countries for impo rts of manufactured goods in 1971 . Imports from Africa averaee

d

only 4..2%

of th

e t

otal1

but the range is

wide~

from 2ü%

1

H>% ^and 1 6 %

for the

po

or land loc

k

ed sta tes

of

Upper V

o

lta 9 Mali and Niger res

pe

c- tively9 to

under

2% ^{for Nigeria and Li}

^b

^eria.

Iri general, th

e

Anglo

- phone co

untr

ies remain isolated

.

from one

anothe

r and t

he

rest

of Africa

w

hi

le the Franco-phone count ries

b

ave str

ong

er link s reflectin

g

t

heir

cl

oser

political ass

ociation

. T

he

Ivory Coast and Sene

g

al in

particu

larly function as industriel

' po

les in

Franco-phone _

West

Af

rica. Match in

g

t

h

e

very low level of Ni

ge

rian impor ta

.of African

manufactures,

oth

erp

~!est

REBRODUCTION/0 9/82 Page 12

African countr

ies

rely on· Nigeria f

or on.

ly 2

. 7% of

their African manufacture

d

impor ts, elthough s

h

e pr

odu

ces sorne

51% of West African

manufacturing output

.

Ho

wever, with the

cr

eation

of

ECOWAS

9

step s

are b

ein

g

tak en

to

foster

greater

industrial c

o-operat

io

n.

Ni

geria· e

lrea

dy ha

s a

numbe

r

''·'.'·

of joint indus trial proj ects wi th

oth

er c

oun

t

ri

es, notably i

n pe

tr

o-

lebm,

ir

on and

11teel

and sugar

processine;. But Samir A

mi

n ¹

s warn in

e;

must

be

notedg that t

h

e ECO\t/.!l.S-typ e

approa

ch

to

ec

onomie deve

l

oprn

ent and inte

gration

may, if i t conti

nue

s t

h

e

outvH::J.rd-or

iented, mar

k

et- based indu striel strategy, a

ggravat

e existing structural imbalances and uneven

develop~ent

(Schissel 1977 ).

Effort

s

need

to

b

e

directed tow·â~ds

m

or

e deli

b

erate

po

licies and

p

r

ogr

ammes

on

the cho ice

of

·

industries as well as their l

ocation

and linka

ge

structure

on

a Sut

-

continental scale.

2.

3. Nigerian ~atterns

Th e 2,

600 industr-iel establishments

irlith 10

or

more wor

k

ers

listed

i

n

t

h

e Industriel Directory for 197 5 are l

ocated

in 174 t

own

s.

This

p

icture

.re

presents

a

remarkable chan

ge ov

er the last 10 years,

with

a sha r

p

increase in the numb.er

of location

s r

ef

lecting the

new

importance of

i

ndigenous

bu

sinesses in indù· strial

decision-makin~

ancl the stron

g a

ttraction f

or them of

centres servi

ng tbeir home communi

- ties.

But th

e

pu

ll of the

po

rts and ma

jo

r administrative/ commercial centres is very strong. The leadin

g

7

me

tropo litan an

d

re

gional

c

entres

account for

62% o

f all establishments

(T

abl e

VII)~

Geographically, fou

r

clustres

of

ma

jor

centres account lor 731b of t

h

e estab lishments

g

Metropolitan Lagos

-

I

badan - Abeol.r:uta

Enugu - Onitsha

-

Aba

-

Port

Har

c

ourt

l~ano - Kaduna -

J

o

s Benin

-

Sapele

-

Warri

17

.0%

15.~%

9.~%

..

..

•

. REPRbDUCTION/09/82 Page 13

Lar-ge areas of the coun~ry. outside tb.~.se industr-ial polygons and a few isolated centres like Calabar and Naiduguri. lad: modern

indus,~rial establishments. And ther:e is little correlation between '.the size, of indus trial-ac ti vi ty in a ce.ntre end i ts popu}ation or that Gf d~s hinterland.

In terms of poli tical r·el?;ions₉ ·the soüt:l1 accounts ·for 72%

df

the industrial centrë·s and·

73%

of the estabiish~ents9 the Middlè 'Bel t 16% arid 11f% rèspectively; the ·s·udan North 12% and 13%• An:d only ïn

the Soutb.et!:i States · are the various indus trial groups ··fairty represented. The structure of industrial location 'is yet poorly adjustëd· to' tb·e neêds of

the

space economy.

Further analysis reveal's the different locational characteristics of various types of industry (Table IX). Of the 68 major fn.dU:stries listed9

9

were fourid only in one or two centres serving the needs of the entire country. The se included fish canninfh .. .su.g'ar· ref.Üiing9

paper and pulp ₉ .petroleum refining. and ·fertilizers. 30 otlxer industries includin,g most high-technology.andhigh-:-output .industries l ike breweries and tobac~o9 éement9. machinery and transport ec:uipment are each concen- traded. in ) to 8 regional centres. ;Tb.ese higher.-order industries account for 12.2% of all establishments. The general run of large-

·:scale consumer industries₉ ac.coun"tiing for 34% of_ establishments. were

_more wi4ely dispersed each .between

9

and 26 centres. Industries.found in 27 or more locations included printine;~ ,saw mills9 vegetable oil

.mills9 furni ture and textiles~ . But only bal~eries (1ûlJ: l ocations)

coul d be truly described as ubiquitous~ ·

Examining l ocations we fii1d that very f evr of them have a me.ture industrial structure₉ with forward and backward linls:ages among the various establishments stimulating and sust&inin~ overall growth anê:

development.

. ,

. .

^·'

. REPRODUCTION/09/82 Page 1~

In marked contrast9 the locational pattern

of

small-scale industries demonstrates the immediacy of thei:r involvement in the

!ife of the local communities. For example₉ in Bornu-bauchi/Gongola.

states "'!1ere Maiduguri 9 Gombe and Bauchi ,,.ere the only centres wi th

5

or more medium and large scale industries₉ there were 24 centres

wi th 1;-,0 or more small-scale industries.. The three state capi tals

to~ether accounted for only 18% of all small-scale industries. hlhile l1aiduguri maintained i ts pre-eminence wi th 11%₉ Bauchi and Yola. \;Jere ranked ~th and 8th among 100 centres. Other states also have v/ell-

spre~d, n(;)tworll:s of small-sca.le industriel centr'"s9 and surveys of

i ...

marketing flows show the strong orientation ?f rural communities to their local centres. It is on these centres₉ already adopted by the people to serve their basic needs9 that we must focus our efforts at developing industrial growth poles at local levels.

:} • ON ENDS J:1ND ME ANS

We bave argued that industrialization in Africa should be assessed not merely for. its market-efficiency in raising per capita income vis-à-vis other economie activities under existing conditions, but, more fundamentally9 for its critica.l role in the development of modern scientific technology with which economies can build up their

over-all productivity and efficiency and maximise the use of their resources. From this perspective A number of instrumental obj~ctivoe

of industrial policy may be definedg to secure autonomy of control over industriel operations and attain greater equality in external relationships9 to rationalise the structure of industries in terme of the internal needs of the economy~ and to internalise and diffuse technoloe;y throuf!:hout the economy.

•

3.1. ·

.Autonomy of Control

REPRoruc~ION/Q9/87 Pe8e 15

· ~B~ d evelopm~nt

of the c6lonial ec6nomic

~ystem

in

Afri c~ · ha s

~volvéd within a hierrc~ical structure of power and control~ with African interests at the base and multinational corporate :Lnterests at the top.

The main reasons for foreign iïïvestmï3nt 'by'"fuül'tinat'iônal~ are now well knowng to protect or pre-empt markèts for .their products9

to protect home market position as sellers of final product~ ·by:

s~c~~ing sources of raw materiels or in~ermediate inputs~ ~nd .to

exploit cheap labour, tax aclvantages and other regulations f·br~ cheaper production or for access to'other protected markets. (Horst i973~ Mansfield

1975)

·~

Studies have also documented·the· characteristics of MNC operations

· in developing countries. They t and to use se6ond-ha~d9 ^~o~~time~

obsolete machinery₉ whose book value is usualiy a legal fricti6h de'pendins on laws in the user and exporting countries ^9. and to use

..

this equipment more intensively than local plànts. They employ less labo~r, ~ake as little us~ as possible of loc~l inputs and achleve lo~er valœadded than indigenous enterpriseè

6f

equivalent _size~

(Cohen

1973) .

They are generally less reeponsive to local influences9

the more so if they are foot-loose~ import dependent industries.

(Riedel,

1975 ).

When they are oblig~d ~~ develop linkages~ ihe result is often the importation of other units or associate of the same multi- nationals as their collaborators. Such lin~ages are illusory9 still havint?; little contact with the local economy they do not enlar&;e ¹¹the internal roundaboutness of production"' 'I'Jhich sustains growth. ^{(I,Jei t'~ .... 8 c~Vco-~ {'-'' -'--}

and \AJolff

1977 )

⁰ \<li th the current trends towàrd~ n:ationalization and.

indigenisation of enterprises, formai controli ovèr much of the dominant foreign-linked sectors bas now passed to Go~er~men:t~ ehd indigenous enterprises. But only too often for man~i~cturing l.ndustries this

REPRODUCTION/ 09/8 2

Page 16

has meant control of buildings9 plant and labour9 technology remaining firmly in the hands of the foreigners 9 wi th '"'hom arrane;emaats have to be ~~de t o carry on existing operational relationships in the pursuit of continued cash profitabi l i ty.

Rationalization of Structure

Traditional development theory sees industrialization in developing countries as an orderly progress from primary processing9 through

production of consumer goods for import substitution₉ to the production

'·

of intermediate and capital goods (Ewi~g

1968) .

During the f irst phase

•J

manufacturing activity is minimal9 being limited to raw materiel benefi- ciation for more convenient supply of industriel users in the metropolitan countries. In the second phase9 the conspicuous consumption of imported luxury goods by the beneficiaries of the colonial economy - the export enclaves and the ruling political and commercial elites - has created a large enougb market .in these goods for the foreign vendors to protect their stakes by setting up l ocal plants based initially on assembly with very l i t tle l ocal value added. The move into intermediate and capital goods proceed ' mainly by backward integration from the structurally ~

biased consumer industry. h'ith a pool of cheap industrial labour establisbed₉ and₉ taking advantage of l ocal protectionism and interna- tional tax structurres₉ the r1NCs may also move in with export-oriented manufacturing geared to their gl obal marketing strategy. (Horst

1973

9

Mansfield

1975) .

As long as the structure of manufacturing is determined by narrow elitist and extraneous foreign interests₉ the scope for industrializa~

tion and its impact on the African economy are severely limited. A comparison· of the structure. of the transport equipment industry in the United States and Nigeria is instructive of the untapped potentials in Nigeria. According to Chisholm

(1973)

the United States had

130

vehicle

RER)c-:WDUCTION/09/82 Page 17

assembly plants in 19~7.• . ,T~e_s_~_ ;wer~~ supp~~':~Cl. .. '!>Y.:.:.~J~

...

Y_iD:terl!'-·ediat(l output plants together contributing 40% of value added in the industry. Fo~

llon-in.tegrated plant intermediate inputs contributed

69%

of total costs. By contra.st, while materiel inputs were rough.ly similar in Nigeria

for 1960, the country nad to import 91% of these from plants located abroad, at 68% of total costs. (FRN 1975) the pultiplier effects of ,the industry ate felt mainly by foreign pla~ts.

A

major source _of

industriel srowth is the planned development of such intermediate plants by l~cal interests.

But even more important is the prcduction of .eoods for forward linkage to n ew industries designed for mass consumption and .f or

producine; ,capital goods geared to raising the productiv.i ty of _t he bu.Ur of t~e working population.

By

this process modern technologyq~n

cease. to be the preserve of ci ti es and export-producing enclaves. P.

specifie objective should be to upgrade productivity in agriculture and small-scale industry to the levels already achieved by the large-scale industrial sector9 thereby achieving a balanced structure for future deyelo?ment .

The rationalization of structure also relates t o the !=Jpatial stru,ctUI:? of t he economy; it is necessary to ensure that industries ce.ntres are developed in such a wuy that they contribute to better integration and interdependence of various reeions rather than the, si.phoning_of the human and material resources of the peripher13,l areas for the enrichment of a few centres. In West Africa the plight of the interior states, is already well lmown and special. action

1?y

ECO\r/AS may ~e required to ensure that enough centres are created to bring these backwaters into the mainstream of industrial development.

REPRO:OUCTION/09/82

Page 18

3.3.

^Internalization and Diffusion of Technology

In theory₉ the devel oping countries are fortunate in that there exists a large body of scientific information and technological kifow- ledge which can be acquired, applied, adapted and bui l t upon for our developmerit. But the optimum realization of the potentiels of this

..

situation poses ·peculiar problems. This basic resource has been accumulated mainly in the metropolitan countries under the stimulus of hi storical necessity, both economie and political. Its structure and development has been tailored to their l ocal needs and circumstances. To the extent that the transfer of tecbnolOG7 to developing countries h~; ^been initiated or mediated by institutions tribut ions tributary to them, the c·hoice of technology and the mode of i ts transf er have beer~

determined largely by metropolitan int erests. · A.nd even ' l iberal'

Western scholars, in their advocacy of ¹efficiency' of industrializat ion in terms of marlret economies, stages of e;rowtb., and the orderly

transfer of 'appropriate' technology, are overly sensitive to the eguilibrium of the existing world economie order.

It has been estimated that only

5%

of modern technology used in Africa is under indi genous controlw the rest bains hel d by foreign interests (Thomas

1976).

The existing modes of transfe~ ~f technology through tbese interests are restrictive₉ expansive and superfic{al . They limit and distort the range and depth of technology that can be acquired by African countries. With mul tinational firms, technology is usually not sold outright but rented as prepackaged proprietary

information to subsidiaries or· joint ventures9 witb the forei gn interesto retaining full control over the t echnological 'secrets' . And the

training of l ocal staff is usually limited in scope and content9 with the headquarters of the foreign interest s retaining9 for a fee9 contr~c­

tual responsibility for major maint enance and trouble-shooting as well as research and development. The importation of intermediate inputs is also controlled by the 'technical experts' of the forei gn interests, cutting off national interests from access to the range of sources and technology embodied in them.

.

..

..

REPRDDUC.TTON/ 09/02 Page 19

The fragmentation of local participation already referred to also me~ns tha:t there is little interaction amone; African engineers₉ technologjs.ts .~nd managers operating in the same industry, no apprecia- tion of the oyerall situation, no exchange and co-ordination of

information and cross-fertilization of ideas on which a comrnunity builds up its technoloeical capital.

Tbus it ~s not surprising that twenty years after obtaining its first brewery and with twelve breweries functional, Nigeri~ still ras to resort to f(lreign turn-key contracts and management agreements· for the design;. construction and operation of new bre'«eries and even for expansion. programmes. Furthermore, inspi te of a s.t.rong indigenous tradition of brewing the modern Nigerian brevJin~ industry. s.ticlis to imported raw materia.ls and has done little to develop and.market neu br.ews based on local tradi tional grains. The internalization and diffusion of technology calls for deliberate and concerted ~ction by goverrunents at both national and international levels. The first requirements is the creation at the hiab.est, ministerial₉ l evel of government agency, for the formulation and implementation of national

technolo~ical policy. Off the many tasks for such an agency, three

. stand out for special mention~ the promotion of industriel r~searcl:.9

development and training₉ the promotion and support of technology-

cre.ating industry, and the regulation of indus trial b.ehaviour tc ensu:. e

technologi~al growth.

Industrial research and development in the .African context

includes the systematic collection from all over the world of available information about technological processes for study, imitation, adapta- tion and application as necessary. There should al so be investment in strate~ic industries even at commercial loss» for the purpose of training manpower and improvine: technological productivity in the same

RE~RODUCTION/09/82 Page 20

or related fields. Infrastructural support and training facilities for small-scale industries can also play a very important .role. The regulation·of industrial behaviour is o:f critical importance for carree- ting the technological sterili ty of foreig'n ·associated industry. Ti::~ere is rieed to adopt an industry wide rather than project approach to

government invol vement in industrilÙ proa;rammine; end control.

Tbus in our Nigerian examples₉ if all breweries or all vehicle- assembly plants relate to one Government agency₉ it would become a viable proposition both tactically and economically 'to secure b~tter

terms of technological cooperation with the UNCs to make adequate provision for industrial traininG and develop local opportunities for

industriel linkage. The chances are better still i f West lHrican countries, who all deal with much the same group of multinationals, coordinated their operations in each industriel area to take advantae;e of their combined weight.

Finally, poor countries ·ev·ery\ihere need to recognise more clearly the identity of their interests in industrialization for development 9

and to .help and cooperate with one another for the ':full realizatï'on of its potentiel. And the rich countries need not fear such a develop~

ment. For in the light of historical experience the industrialization of developing countries by raising their prodrrctive and absorption capacity will in the long run lead not to any diminutiorf and loss of of trade benefits but to a higher leve! of profitable inter dependence in a more prosperous and more equal world order.

..

•

..

TABLE I

L EPHODUCTION / 09/ 82

Page 21

Structure of Small ScalG Industries

1971*

Cateeory

&

Industries Food Drink

&

Tobacco

Grain r1illing Brewing

Bakery

Textile

&

Clothing Tailoring Sho ema!.dng Weaving LeatherHorks Dyeine;

~fuit tine;

Wood & v·Jood Produce Ind. Furni ture Carpentery

Furniture Making Saw Milling Wood Carving Boat l·1aking

Paper₃ Printing

&

Publishing Prin tine;

Chemical Products Rubber Processing

Non-Metallic Mineral Products Brick t1aking

Pottery

Metals₁ Metal Products

&

Machinery Bicycle Repairing

Ivlotor Vehicle Black Smithing Gold Gmithing Electrical Works Wa.tcè. 1-:.epairing lr'Jeldine;

Other Mat Making

2. 9

0.8

o. :,:, 0 . 3

9. 9

0.8

o.~t:

0 .4

0.2

1.2

0.1

1.3 o. 6

7. 2

Lr..6

3. 6 3. 3 2. 9 2. . 6 1. 6

Pere en tage Share of Establishments

*

Unweighted average of figures from surveys of 12 states) See JHuko et al 1972 & 19739 Iwuji et al 19759 Lewis 1974).

TABLE I I

Growtll of lrianufacturing Establishments

Bef ore

1950 1955 1960 19:&5 1970

to to to to to

1950 1954 1959 1964:

1969 1974

CATEGORY

Food~ Drink & Tobacco 22o3

39 . 1

29.6

27 . 6 19. 3

^{22. 5}

Textile cr. ⁰ Clotb.ing

t6 . 5 9. 1

^15.0

^{11± . 5}

19.8 21.6 Wood Product & Furniture

16 . 5

14.5 19.4 ^14.).

13 . 1

^8.lr,

Paper9 Prin ting & Publishing

19 . 8 13. 6

^10.2

9 . 3

^6.lr,

5. 3

Cb.emice,l JP'roducts 13.2: 8.2 13.1 1L 3 13.1

8 . 7

Non-Metallic Mineral Product

) . 6 1. 9

^{l!t.) 4:.1 10.7}

Basic 'Metals

0. 9

1.0

0. 5

0.3

Hetal Manufacture &

Engineering Products

9. 9 10 . 9 9. 7

13.0 20.3 18.5

Other Industries 1.7 1.0

1 . 5

^{). ]}

3. 9

Weights (She,re of Each Period in Total Number

of Units)

5 .

^~-

'

^-

^{5. 0 9. 3}

^{18.1 19.0 16.1}

{Units established in each category as percentage at the total nunber of industrial units established in each period)/

Based on FOS 1975.

EE:PEODUCTION/09/82 Pat;e 2.2;

ua te

A.ll ::.ct

GiveD. Periods

}6 . 5

^28.1

1)..9

16 .

If.:

22.2

15 . 9 ,.,

^[,

(J. -=

8 . 7

~.5 10.1

3. 0 L 5

0

.

^{7 _,.'·}

^{0 . 5}

10.2 13.0

1. D

2 .. 0

27. l ¹⁰⁰

TABL E III

REPRODUCTION/09/02 Page 23

Structure of Medium and Large Scale Establishments in Nigeria

1972

Industry Group

Food~ Drinks

&

Tobacco Textile

&

Clothing Wood and Wood products Paper9 Printing

&

Publishing

Chemical Products Non-Metallic Mineral Products

Basic Metals, Metal Products

&

Machinery Other

Esteblish- mants

27 •. 6

15.

q,

19 . 9

8.8 10.4

'-*·7

11.5

1. 7

(Based on Fl{N 1975).

funploy- ment

21.

4

30 . 4 8 . 9

7 .8

12-.7

i±.9

12 . 7 l.2

Pere en tage share cf Waf5es Gross Value

& out- added

sala- put :ries value

22.2 32.0 }4.0

25 . 6

19.8

17 . 7

6. 3 2.7 ::- . 2

11.3

5. 3

!::.5

16 . 3

20.7 22.8

Î!:. 6 4:.2

4. 5

12.6

14 . 7

^12.4

1.1

o. 6 0 . 5

_ _ _______

....

-....--...-- -

l'Tot capitnl

E~r.pendi·-

ture

22 . 7

30.0

~ i. 7

t . 7 1'7 .

~Î:

6. ' :::

... ,-,

.... ). J

o. r-,

REPRODUCTION/

09/ 82 Pag e 24t

TABLE IV

St ru

c

ture of Industriel Investment

Ca

te go

r

y

Food

,

DriL:.r s &

Toba.cc o Textiles

&

Cloth

in

g

Wood & W ood

Products

Indu

s

try Furniture

Pa per, Printin

g

& Pub lish ine;

C

he

m

ica l Produ cts Non- M eta ll ic Mineral Pro

du

cts

Basic

metals metal

pr

odu cts

& Hac

h

i

nery

Other

Sourceg (1) ( 2) (3)

(Percenta

g

es)

A

ll

m edium Foreign Cap ital Governmcnt

& l

arge Priva te

Inv

estte In I

nve

stment

s

c ale Indus- Invest- Smal l Indu s

-

3rd Plan tries Net

m

ent tries

in

Six Programœe Cap ital selecte

d

States

Exp enditure

1972

1973

1975- 80

(

1

) (2 ) 72* ⁽³⁾

22.7 26.l.l: 8.1

9. 9

38.0 19.

1

23.0

0. 7

1. 7 ^{4.1 15}

^.

¹

10.~

0.03

6.

4 0.43 6 . 0

8.0

0.4

5. 0

^1.24

o.

^:l_

A

nnu

a

l A

bstract

of Sta t is

t

ics 1973

p.

45

Central

Bank of Ni

geria

Economie and Financial

1 eviet·J

Vo

l. 14

N° 1 Ma

r

ch

1976.

FRN

}rd N

a

tiona

l

Develo

pment Plan

* Date from Western

&

Nort,_. Ea st

ern States 1972 c

omb i

nod

( A

l

uko 1972, Lew is

197~).

..

R EPRODUCTION/09/82

Page 25

TABLE V

Structure of Industrial Programme in Nigeria's Jrd National Development Plan

PROJECTS

A. (Leading Industries)

Products of Petroleum and Coal Iron and Steel Basic

Pet roleum Refineries

Basic Industrial Chemicals~

Fertilizers

&

Pesticides

Suger~ Chocolabe and Confectioneries Pulp, Paper

&

Paper Products

Cement, Lime

&

Plaster

(Otber

Industries)

B. Industriel Research Development and Training

C. Industriel Estates₂ Areas and Layouts Do Finanoial Assistance to Private lndustry

(Loans

&

Equity Participation in Medium and Lerge-Scale Industries)

(Small-Scale Industriel Credit )

(Bas ed on

FD~

1975)

Percentage Sgares of Capital

Programme

(75 .55) 24.56 19. 63 13 .75

7.20

6 .38 6 .2 5

11.81

87.37

TABLE VI

REPRODUCTIGN/09/82 Pace 26

Imports of Manufactured Gcods by West African Countries By Principal Sources and Value (US Dollarê,) 191.!

Importing Country

Benin

Ghana

Total importe

35397

116191

Liberia 58817

Mali 13631

Pauritania

Nige:r

Nie;eria

12817

18306 546177

Senegal

57544

Sierra Leone

43648

Togo 26847

Upper Volta 13866

From A.frica

3501

3189

1027

1050

2459

1625

2857

10214

6670

1600

1764

2837

From Nigeria

507

226

19

16

10

110

23

(UNSEIBA

1975)

Leading Countries with first 90% of total A.frican imports in rank order (value in brackets)

T og o

(1718)~ Ivory Coast

(678)~ Nigeria

(507 )9

Senegal

(384).

Egypt (1753) Botswana

l

479l;

Nigeria (226); Zaire

196

9 Morocco

(162 ) ; Tog o 136 •

Senegal (4100); Cameroon

(22~8) Mali

(416); Ecypt (300 ).

3enegal

(341);

Morocco (282); Sierra Leone

(17 9 ) ;

Ivory Coast (99)~ Gabon (73~ . Seneial (824); Ivory Coant

(746 9 Ghena

(478);

Eg7; t (205 •

Senegal

1472

Ivorr Coast

(1652) ?

Senegal

(6 55) 9

Egypt

(147 ) .

Egypt (58~8); Zaire (15~7)~

Ghana

(596)9

Senegal (578)?

Morocco (5~4)9

Alger i a (11; ) .

Ivory Coast ~5020) Horocco

(72 t)? Mali ,279).

Senegal

(6 01) 9 Egypt (356)9

Gabon (220)9 Ivory Coast (~~~~ .

Ivori

Coast (~51)9 Benin (3T?·9 Egypt (356) Gl::.ana (30~ 9 Senegal

(113).

Ivo~f Coast (21~6)9 ,Dali

(225)9

Senegal (167)9 Gbana {

1l.l:7).

TABLE VII

R EPR ODUCTION/09/82

Page 27

R EGIONAL DISTRIBUTION OF INDUSTRIES

^197~

Food, Beverages and T0bacco Textiles

&

Clothine

Wood, Wood Products

&

Furr..iture

Paper, Printing

&

Publishing

Cheaical Products Non-î1etallic Mineral Products

Basic Hetals Fabricated l1etal ProduoXG & 1'-iach.inery Other ~-1anufactures

All Industriel Locations

Percentage of Industrial Locations

Percentage of Industrial Establishment

Sudan States (Solwto, Kaduna

Kano, Bauchi

1.7

10

5

2

6

8 1 21

12.1

12.8

!1iddle Bell States

(Ni~er,

X wara

Plateau Benue

&

Gone;ola )

17

9

9

5

2

5 1

·~

27

(Based on

F OS 197 5)

Southern Sta·L .. ~s

(Loyo, · Ogun, Ondo, Lagos Ben.del₉ Anambra, Imo Cross Eivex

&

Ri vers

18

23

20

26 7 126

73 .3