problems and solution of  manufacturing industries

problems and solution of  manufacturing industries in Nigeria

The following factors hinder, limit or are responsible for the relatively low level of industrial development in Nigeria

problems of  manufacturing industries

  1. Shortage of raw materials: Lack of sufficient raw materials available to industries hinders large scale production
  2. Insufficient capital: Access to finance or loan is very difficult. Capital i.e. loan is only for the big time investors who possess collateral securities.
  3. High degree of foreign dependence: Most products made in Africa are of low quality compared with their counterparts in developed countries; hence, people rely or depend on foreign goods.

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  1. Poor quality of industrial labour: Nigeria has a large pool of illiterate population that provides the personnel for our industries.
  2. Low purchasing power of the populace: Large scale poverty in Nigeria makes people have low purchasing power.
  3. Inadequate power supply: There are frequent disruptions of power supply in industrial areas and many areas do not even have power supply at all.
  4. Competition from foreign goods: because of the high quality of foreign goods, these produced by our local industries are usually not patronized.
  5. Shortage of entrepreneur: Owing to lack of capital and other factors, reliable investors are not common.
  6. Poor management: Corruption, embezzlement and negligence of duty are very common in African countries and these are indicators of poor management.

  1. Political instability: Frequent changes in governments and incessant civil wars in African countries discourage foreign investors.
  2. Inadequate transport and communication facilities: Transportation network like road, rail and communication facilities are grossly inadequate in Tropical Africa.
  3. Small market for industrial goods: Tropical African countries do not have large market that can accommodate industrial goods produced.
  4. Inadequate skilled man – power: Skilled man- power required for high industrial growth is grossly inadequate in developing countries.
  5. High cost of spare – parts: Industrial machines imported into developing countries may break down. In most cases, spare parts for such machines may not be available and when they are available, they are very expensive.


  1. Acquisition of skills: Skills should be acquired by people through regular training
  2. Good government policies: There should be good government policies to protect local industries
  3. Active government participation: There should be active government participation in industrial development  i.e. co – ownership of companies.
  4. Incentives to local industries: There should be incentives e.g. tax holiday, to local industries
  5. Provision of transport facilities: These should be provided to ensure easy evacuation of goods.
  6. Creation of industrial zones: These will also provide conducive environment with all the infra – structural facilities for industrialization.
  7. Establishment of industrial banks: Industrial banks should be set up to provide loans to industrialists.
  8. Stable government: There should be stable government in order to attract foreign investors.
  9. Local sourcing of raw materials: There should be exploitation of raw materials locally for industries.

  1. Organization of management courses: Management courses should be organized at regular basis for workers.
  2. Building and maintenance of infrastructural facilities: Infrastructural facilities such as roads, telephones, water and electricity should be built and maintained.
  3. Establishment of more power plants: Power plants such as thermal/ or hydro – electricity plants should be established to boost power supply to industries.
  4. Increase in wages / salaries of workers: There should be increase in wages / salaries of workers in industries to boost their morale and increase productivity.


163. TICK
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