PROBLEMS AND PROSPECT OF MANUFACTURING INDUSTRIES IN NIGERIA

CHAPTER ONE

BACKGROUND OF THE STUDY

Since the attainment of independence by West Africa countries, successive governments have taken serious interest in industrialization.  Industrialization can be defined on the conversion of an agrarian and commercial society to more comprehensive machinery oriented.  Social – economic system.  This concept cannot be treated, without remembering the industrial revolution of the Western Europe of the 15th and 16th century.  The new Encyclopedia 4th edition (1975) described the industrial revolution as a term usually applied to the socio-economic changes that marked transition from a stable agricultural and commercial society to a name machinery oriented system.

Agriculture which has been the major occupation of more than 80% working population of Nigeria, began to suffer a diminishing role, claiming a lots of population in manpower.  Another related lesion form the history of planned industrialization of the socialist countries especially Soviet Union whose economy was transformed from a very short period predominating of agricultures, change rapidly to an industrialized society.

A further element in the appeal for industrialization is based on the fact that the economic quart for increase in a wide scopes of industrialization both import-substitution and export substitution.  The unequal distribution of gains from trade between developed and a developing country is a related justification for the policy of industrialization. 

All there explains the reason why government should encourage industrialization, which is generally regarded as the way to rapid economic development, higher living – standards for people.  All manufacturing industries are encourage to promote the rapid.  Growth of resources and effective utilization of existing resources available.  Such countries like Japan, U.S.A are all industrialized. 

The Historical Background of Nigeria Breweries

The Nigeria Breweries Plc has plants located in three cities of Nigeria including Kaduna, Lagos, Aba.  The company has just received order to supply its products to three majors towns of Enugu, Makurdi and Benin.

        The Nigeria Breweries plc was established in 1946, Brews Star, Aba, Kaduna, Ibadan, Enugu and Ama Green fields, includes investors information.  Nigeria Breweries plc the pioneer and largest brewing company in Nigeria, with about 12,800 shareholders as at 31st December 2010, the authorized.

        Nigeria Breweries plc the pioneer and largest brewing company in Nigeria was in corporate in 1940 and recorded at land made when the first bottle of star larger beer rolled off the bottling line in its Lagos Brewery in June 1949.  This was followed by Aba Brewery which was commissioned in 957, Kaduna Brewery in 1963 and Ibadan Brewery in 1982 in September 1993, the company acquired its fifth brewery in Enugu while in October, 2003, a sixth Brewery sited at Ama in Enugu state was commissioned.

        Ama Brewery is the biggest brewery in Nigeria and the most modern in the world operations in Enugu brewery was discontinued in 2004.  Thus from its humble beginning in 1946 the company now has five operational breweries from which it high quality products are distributed to all parts of this great country.

Research and Development

Nigerian Breweries plc keeps pace with key internal developments thus ensuring that its systems process and operational procedures are always in conformity with world class standards.

        It is in line with this policy that the company established a research and development centre. In 198, to enhance its research activities on all aspects of brewing operations.

Social Responsibility

Nigeria Breweries plc is a social responsible corporate citizen with a very good record of corporate philanthropy in the areas of education, the environment (water) and sports, among other.  The company in 1994 established on education burst fund of N100million to take more activities part in the funding of educational and research facilities in higher institutions, all in an effort to provide and encourage academic excellence in Nigeria. 

        This is in addition its secondary and university scholarship progrmme for children of its employees.  Nigerian Breweries plc is the foremost sponsor of sports by variety in the country with sponsorhip.  Covering foot ball, athletics, Tennis, cycling, chess, Golf, Badminton, Dart, Boat Recing and Ayo.  The aim is to develop.  Nigerian sports men and women to participate in national and internal sports and boost the sports profile of the country.  The company is also involved in the development of musicians and movie talents, through various programmes.

Ancillary Industries: As a major brewing concern, the company encourages the establishment of ancillary business.  Many of these organizations and individuals depend largely on the company for their means of livelihood.  These include manufactures of Bottles, crown labels cartons plastic crates and such services as Hotels and clubs and our key distributors countries but depend on West Africa countries for its agricultural products which is most needed.

        Arising from the fact above, after the Second World War, the colonial government began to introduce a number of legislation, which was aimed at stimulating the establishment of modern industries.  They began to tension out industrization which seems to be the key to economic independence and the vital tool to eliminate poverty and unemployment.  Other incentives of industrialization include capital depreciation import duties, custom duties, draw back regulation and the establishment of industrial estates in the countries.

Government also gave guarantee for the repatriation of products and dividends.  In addition a number of development board were set up to finance development with the approach to expanding the market strategy for market dominance which was under – increasing threat from new firms coming into the country.  It could be seen from the history given above, that industrialization is a key to economic independence.  The pressing need for industrialization in West Africa is also brought out by relatively small – use many things which could be much and quickly close through mechanical process.

In summary, at could be vividly seen that the manufacturing industries in Nigeria and West African resources and so on.  This study intends to examine problems and proffer solutions and recommendations.

STATEMENT OF PROBLEM

(1)        Poor infrastructural development

(2)        High cost of obtaining invisible funds

(3)        High cost of acquiring industrial machine and equipment

(4)        Inadequate government support for industrialization drive of small and medium entrepreneurs.

(5)        Incessant demand of Nigerians for imported products

PURPOSE OF THE STUDY

          All research study is aimed at achieving certain objectives.  The objectives of this study include the following.

1)           To examine the state of infrastructural development in the country with reference to Nigerian Breweries Plc.

2)           To examine the alternative sources of funds and associating costs of manufacturing industries with a focus on Nigerian Breweries plc.

3)           To examine the causes of increasing demand for imported goods by Nigerians.

4)           To recommend how the problems facilitating against Nigeria’s guest for industrialization can be mitigated.

SCOPE OF THE STUDY

This study is designed to cover as much as possible, all aspects of poor performance of the manufacturing industrial with emphasis on the problems and solutions to its poor performance and also the effect of the production aspects of the industries.

 RESEARCH QUESTIONS AND RESEARCH HYPOTHESIS

 To guide this project work, the following – research questions were formulated to ensure clarify.

a.           What are the alternative sources of funds valuable to finance industrial in Nigeria?

b.           What are the required infrastructure necessary for industrial growth and development in Nigeria?

c.           Why the increasing penchant for imported good by Nigerians?

d.           What is the cost of the investible funds?

Research Hypothesis

        In order to determine the management problem, of manufacturing industries in Nigeria it is necessary to test the following hypothesis

(a)    Ho:   Poor infrastructural development does not impact on industrial development of Nigeria.

        Hi:   Poor infrastructural development impact positively on industrial development in Nigeria.

(b)    Ho:  High cost of capital does not make investible funds accessible.

(c)    Hi:    High cost of capital males investable funds accessible

        Hi:     Government does not give adequate support for small and medium scale enterprises (SMEIS)

SIGNIFICANT OF THE STUDY

(1)        It is hope that when two studies are completed, it will assist stake holders in the manufacturing industries in the management of their business.

(2)        It is also hoped that this study will provide a base for other researcher who – provide a base for other researcher who – might want to conduct further researcher on the area of management problems, of manufacturing industries.

(3)        It is hoped that the recommendations of this study would be of empirical – relevance to management, so as to adopt them to suit their objectives.

DEFINITION OF TERMS  

The following terms are defined in the content in which they are used in this research work.

(1)        Industrialization:  This is the process of been industrialized

(2)        Manufacturing:  The activity of making things big an industrial process.

(3)        Manufacturing:  The activity of making things by an industrial process of developing

(4)        Performance:  The ability to operate efficiently

(5)        Problem:  Things that are difficult to deal with

(6)        Unemployment:  The act of not been employed.

(7)        Instability:  unstable atmosphere

(8)        Infrastructure:  Basic needs

(9)        Revolution:  An attempt to change a situation or government

(10)     Respondent(s):  A person or persons who answer questions.