The Environments of the Manufacturing Sector in Nigeria: Strategies Towards Vision 20: 2020

[a] Ph.D.， Department of Business Administration， Kogi State University， Anyigba， Nigeria.

* Corresponding Author.

Address: Department of Business Administration， Kogi State University， Anyigba， Nigeria.

Received 10 July 2012; Accepted 22 August 2012

Abstract

The research efforts in this article had been to highlight the harsh and unfavorable environments under which the nation’s manufacturing sector operates. The major problems of this sector are: high production costs; poor infrastructures; finance; competition from fake and sub-standard imported goods; limited scope of operation; among a myriad of other obstacles. To assist the nation to be one of the twenty biggest economies in 2020， this article made far reaching recommendations for government and its various agencies to fine-tune and implement.

Key words: Manufacturing sector; Vision 20: 2020; Strategies; Environment

B. CHIMA ONUOHA (2012). The Environments of the Manufacturing Sector in Nigeria: Strategies Towards Vision 20:2020. International Business and Management， 5(1)， -0. Available from: URL: http://www.cscanada.net/index.php/ibm/article/view/j.ibm.1923842820120501.1210

DOI: http://dx.doi.org/10.3968/j.ibm.1923842820120501.1210

INTRODUCTION

One important strategy used by India， China and Indonesia – nations with large populations in their quest for economic development was strong internal demand/consumption of their manufactured goods. Nigeria with a population of over 140 million people， obviously is the biggest market in Africa， and ought to be a strong market for its manufacturing sector. When West African sub-region and other African markets are added， then there is a huge existing market for whatever quality products and services from Nigeria.

Unfortunately， this has not been so. Nigeria’s manufacturing sector has been operating under very unfavorable environments and contribution little to the nation’s GDP. And many firms had closed down due to lack – of patronage of their products both in Nigeria and beyond. Nigeria， a country that wants to be one of the twenty biggest economies in 2020 should have a developed and vibrant manufacturing sector. Such a dynamic sector will generate massive employment， fight poverty， create wealth， and enhance exports and diversify foreign exchange earnings.

Our efforts in this article were to highlight all the factors impeding effective growth of the manufacturing sector and proffered strategies which if implemented religiously will surely lead to Nigeria becoming one of the twenty biggest economies by 2020.

1. THEORETICAL FRAMEWORK

In a very broad sense， investment is the sacrifice of certain present value for (possible uncertain) future value， Sharpe (1978， p.2). Since today’s price is known， investment entails a certain sacrifice with the hope of attaining an uncertain future benefits， Hagin (1989， p.322). Investment has been described in many other ways: “the acquisition of an asset or service that will enhance income or utility in the future”， according to Simpson (1976， p.31)， and the “act of producing goods that are not for immediate consumption， the goods themselves are called investment goods” in Lipsey’s opinion (1963， p.462). Finally， it is also defined as a kind of intentional spending to buy newly produced capital goods and additions to inventory. Hutchinson (1971， p.244).

One main feature of these definitions is that they point to expenditure on real goods and services (i.e.， real investments) except the first definition by Sharpe which embraces both real and financial investments. Real investment would be more relevant for our present study. This is because manufacturing entails essentially investments in real assets.

The United Nations has characterized manufacturing as the “mechanical or chemical transformation of inorganic or organic substance into new products whether the work is done in a factory or the worker’s home， and whether the products are sold at wholesale or retail”， Arikawe (1984， p.9). Manufacturing is also defined as “a process of learning to combine resources and apply technology to produce goods that satisfy people’s need”， Steel and Webster (1989， p.64).

In this study， the researcher has opted to use the term “manufacturing” because it is more specific. We observe however that in everyday usage the word “industry” and “manufacturing” are often used interchangeably. We shall them as such even though we recognize that industry is wider in scope than manufacturing. The United Nations definition of manufacturing will be adopted in this research.

Manufacturing processes which could be extractive， analytical， synthetic or fabricating should be part and parcel of the overall corporate policy of the organization. Failure to incorporate manufacturing policies into corporate policy could lead to a number of conflicts or create avoidable problems for an organization. And within the manufacturing policies， Imaga (2002， p.35) is of the view that the manufacturer or production manager should also have:

√Policy on the reduction of training costs;

√Policy on quality improvement;

√Policy on quicker delivery of special orders;

√Policy on work–in–progress and lower material stocks;

√Policy on higher plant utilization; and

√Policy on industrial flexibility， to mention but a few. Banjoko (1989， p.7) agrees with Imaga as to what the manufacturing sub-policies should be.

There is no doubt that effective and consistent government policies in the area of manufacturing will lead to industrial development and industrialization. Tadaro (1982) sees industrial development as a process of building a society’s capacity to process raw materials for the purpose of manufacturing commodities for consumption and for further production. Onyemelukwe (1984， p.109) agrees to Nigeria’s long term potential in industrial development， particularly， within the three main economic factors of production， namely， land labor and capital.

2. ENVIRONMENTS OF THE MANUFACTURING SECTOR

The manufacturing sector during the period under review was not isolated from the challenges of the harsh economic environment as evidenced by declined activities relative to corresponding period of 2009. According to CBN， the growth rate declined from 7.03% in 2009 to 6.43% in 2010 as a result of the poor state of infrastructure， especially， energy， increased cost of funds， multiplicity of taxes， weak demand as a result of low purchasing power and trade malpractices.

*The contribution of manufacturing sector to GDP was 4.1% in 2010 compared to 4.21% in 2009.

*Average manufacturing capacity utilization decreased from 47% in 2009 to 45% in 2010.

*Employment figure in the first half of 2010 recorded a decrease from 998，086 in Jan – June 2009 to 966，395 in the same corresponding period of 2010.

*Production output declined from N183.8 billion is the first half of 2009 to 165.7 billion in the same period of 2010.

*Business unplanned inventory increased from N5.15 billion in first half of 2009 to N11.4 billion in the same period of 2010.

*Investment profile in the first half of 2010 had a sharp decline from N1， 280，592 billion in Jan–June 2009 to N360，232 billion in the corresponding period of 2010， (Jide， 2010， p.51).

In a study by this author on manufacturing firms in Abia State， in 2005 and revalidated recently in the Niger Delta， his research works revealed， among other things， that the manufacturing sector’s environments in Nigeria are problematic and harsh. These include: High production costs， poor infrastructures， finance， competition from imported goods， limited scope of operation， etc. (Onuoha， 2009， pp.27-37).

The findings also indicate that these problems can lead to business failure which essentially is seen as rising operational costs without increasing sales volume.

The findings conform to MAN’s observations in its various documents of factors militating against members operation. They are summarized thus:

●Poor and deteriorating infrastructural services， compounded by collapsed electricity supply which impacted negatively on capacity utilization;

●Deepening weak domestic demand arising from lack of consumer purchasing power;

●High and unplanned inventories caused by lack of patronage and distress in aggregate domestic demand;

●Unbridled influx of cheap imports of sub-standard， fake and used products， including dumping of all manner of finished goods-all in the name of trade liberalization;

●High costs of funds arising from depreciation of the Naira against major currencies coupled with high lending rates and extreme difficulties in accessing credit for working capital， particularly by small and medium–scale industries;

●Policy inconsistency and anomalies in customs duty， including the absurd case of a 5 percent increase in the duty rates of some raw materials since January 1999， while imported finished goods witnessed a corresponding reduction in duty;

●Continuing harassment of companies by some state and local governments over unauthorized multiple levies， taxes and charges in spite of the clear position of the law on the matter;

●Inadequate funding and lack of working capital for small and medium scale industries as well as weak institutional structures;

●Problems of supply of petroleum products， particularly AGO (diesel) LPFO (black oil); and

●Persistent congestion at the sea ports;

●Acute infrastructural deficiency in the nation;

●Smuggling and unbridled importation and dumping of cheap and substandard goods which usually suffocate local manufactured product;

●Non completion of the development of core industries particularly the Petro-chemical as well as Iron Steel industries;

●Dearth of qualified skilled middle level manpower worsened by the decaying educational system;

●Slow rate of technology acquisition stemming from low investments in Research and Development and absence of the needed collaboration between the various government research institutes and the Universities on the one hand， and the manufacturing sector on the other;

●Cumbersome port administration that hinders the attainment of the 48–hour cargo clearing at the ports;

●Government fiscal expenditure as it stands currently;

●Low execution of capital budget even in the face of low capital allocation， etc.

(MAN， 2007; MAN， 2008; MAN， 2010; Jamodu， 2010， p.47).

One major cost component of the high operation costs of the manufacturing sector in Nigeria is the exorbitant expenditures on energy. Figures released recently by the National Electricity Regulatory Commission (NERC) indicate that of the N796 billions spent to fuel generators in 2008， members of MAN spent over N350 billion. This excludes amount spent on maintenance and repairs and acquisition of new generators，

Obitayo (2001， p.24) lists the following as the problems of small–medium scale enterprises in Nigeria:

(1)Restricted access to finance (including working capital);

(2)Difficulties in input procurement;

(3)Weak infrastructural facilities;

(4)Poor demand of finished goods;

(5)Inadequate collateral securities;

(6)Delay in disbursement of approved fund;

(7)Restricted access to land;

(8)Distress in the banking sector.

These problems are also derived from the Central Bank of Nigeria (CBN) and Nigerian Industrial Development Bank Survey on the status of SMEs in 1997.

In addition to competing with genuine and cheaper imported goods， due largely to the government’s uncoordinated and ill-advised liberalization policy， Nigerian manufacturers are also facing the problem of fake and counterfeit products. This problem is so devastating that MAN had to give the theme of “Combating Fake and Counterfeit Products” to its 2003 AGM. In his Presidential address， MAN’s President then， Charles Ugwu captures the true picture of the problem. According to him，

… Nigeria is under unprecedented plunder and pillage by the activities of smugglers fakes counterfeit and adulterators.

He continues

… It is estimated that between 10% and 30% of cosmetics， toiletries and packaged foods; 20 -30% of electronic goods and computer peripherals as well as 40 -40 -50% of engineering and automobile parts presently in the Nigerian market are counterfeits

What is the outcome? These fake， counterfeit and smuggled goods have practically displaced local brands in the domestic market. Counterfeiting obviously damages the business of companies， while employees lose jobs due to decline in sales.

My research efforts revealed a number of unhealthy developments， inimical to effective technological and industrial development of the economy. They are:

(1)Majority of manufacturing enterprises in Nigeria are into the production of light and consumer–riented goods.

(2)Their mode of manufacturing technique is both manual and machine operated complete automation of operations is still far cry.

(3)Their major machines and raw materials are import oriented with the attendant foreign exchange implications.

(4)Most of them had never used the research findings of some of our research institutes， have no technical partners， operating below installed capacity on average at 40% (for manufacturers in Abia State)， the national average is 48.8% and have no research and development relationship with any multinational corporation or university in the country.

All these go to show the low level of indigenous technology in Nigeria. Our manufacturing enterprises are more or less completely dependent technically and technologically. We lack innovative technology culture， as is the case by experiences of countries like Japan， South Korea， Brazil， Hong Kong， Taiwan， Malaysia， Singapore and China， etc， the economic development of which has depended on the ability to acquire， adapt， modify and improve foreign technology.

The benefits of technology are no doubt many and these include:

a.Improving the growth rate of the national economy;

b.Promoting employment especially in the skilled category;

c.Saving and earning foreign exchange;

d.Reducing prices and improving the quality of goods and services;

e.Encouraging business competitiveness and innovation;

f.Improving the science and technology capability of the country;

g.Generally improving the quality of life (Industrialization Hand Book， 1992， p. 215);

h.Weakness of the private sector executive capacity;

i.The low level of personal income limiting the scope of individual efforts with regards to science and technology and precipitating the incidence of brain drain in the country;

j.The need to develop a critical mass of scientists and technologists and the basic infrastructure of higher education;

k.The cost of industrial RD hardware and software have become prohibitive;

l.Fiscal policy of reduced budgetary allocation resulting in inadequate funding of industrial RD activities.

m.Inability to effectively engage in technology transfer or acquisition due largely to inadequate negotiating capability， exorbitant payments for acquired technology， inclusion of restrictive clauses， etc. (Industrialization Handbook， 1992， pp.220-229). All these are inimical to the country’s industrial development.

Oyewole (2004， p.5) lists the major constraint to include:

◆Non-availability of information on commercializable inventions and RD results;

◆Poor technological entrepreneurial culture in educational institutions and research institutes;

◆Inadequate curricular in the educational institutions;

◆Inadequate government support for spin–off companies;

◆Inadequate infrastructures;

◆Inadequate motivation for the commercialization of inventions/research results;

◆Instability of government， poor planning and execution of policies;

◆Inadequate operation and coordination of spin–off promotional agencies;

◆Lack of funding organizations; and

◆Inadequate patent education and ineffective enforcement of intellectual property rights.

3. EFFECTS OF HARSH ENVIRONMENTS ON THE MANUFACTURING SECTOR

The cumulative effects of the harsh economic environments on manufacturing enterprises in Nigeria are:

(1)Operating below installed capacity， at 47% in 2009 and 45% in 2010.

(2)Losing business opportunities， incurring losses and closing shop. In the area of losing business opportunities， incurring huge losses and closing shop， MAN has officially declared that of its 2000 members， 30 percent mostly small and medium scale industries (SMIS) in Nigeria have closed down， 60 percent of them ailing while just 10 percent of them， notably the multinationals currently operate at sustainable level (Mordi 2005， p.21). According to Borodo (2008， p.46)， between 2000 and 2008， about 820 manufacturing companies have closed down or temporarily suspended production.

(3)The manufacturing sector is contributing very little to the Gross Domestic Product (GDP) of the nation. In 2008， this sector contributed only 4.2% to the nation’s GDP， in 2009 and 4.19% in 2010.

(4)Inability to provide/create employment opportunities， in a country where the rate of unemployment (particularly graduate unemployment is very high.

(5)High debt burden to financial institutions both in Nigeria and abroad.

(6)Relocation of industries to neighboring countries

(7)Unplanned inventories of both raw materials and finished product.

(8)Inability to compete globally and earn foreign exchange for themselves and the economy， etc.

Table 1 shows a rough comparison of Nigeria’s manufacturing sector with selected countries.

Table 1

Manufacturing Sector in Selected Countries

CountryContribution of Manufacturing to GDP% of EmploymentGDP–Real Growth RateInflation

South Africa16%De –industrializing – shedding jobs4.9%4.3%

Malaysia32%27%5.7%2.4%

India 17%NA8.4%5.0%

Brazil30.8%13%4.5%4.6%

Nigeria4.19%De –industrializing –shedding jobs6.4%11%

Singapore24%21.67.9%4.3%

Source: Compiled from different documents

4. STRATEGIES TOWARDS 2020

The agricultural and manufacturing sectors are the keys to any nation’s economic and technological advancement. Unfortunately， in most third world nations， including Nigeria， the performance of these two important sectors has been very poor. Table 1 clearly shows the abysmal record of the country’s manufacturing sector， in terms of its contribution to the nation’s GDP vis-avis other nations. Despite the great promise of the manufacturing sector as the engine of growth， solution to unemployment， creator of wealth and panacea for sustainable development， it has suffered severe decline due largely to unfavorable business climate. For example， it contributed only 4.2% to national output in 2009 and 4.19% in 2010.

Nigeria， under President Olusegun Obasanjo started economic reforms in 2003. On assumption of office， in 2007， President Musa Yar’ Adua’s economic thrust is based on the administration’s 7-point Agenda， aimed at transforming Nigeria to be among the top 20 economies of the world by the year 2020. No nation can be economically developed without a strong manufacturing sector. It is against this backdrop that this article will identify and discuss a number of strategies for a dynamic manufacturing sector between now and the year 2020.

√A major reason for the high cost of doing business in Nigeria is the country’s decaying infrastructure. Basic infrastructures are vital for the effective and efficient functioning of the economy. They are also the primary dominant factors in competitiveness in both the domestic and global markets. As a matter of priority and urgency therefore， concrete efforts must be made and everything done， to provide adequate and efficient infrastructural support services in the country.

√Inadequate power/electricity is an impediment to a vibrant manufacturing sector. MAN members spent a whopping N350 billion to fuel their generating sets in 2008. Part of the power reforms of the Federal Government is to generate 6000 MW by end of 2009 and 10， 000 MW in 2010. To be a major industrial player in 2020， just eleven years away， government’s power programmes must include plans to add a minimum of 3000 MW yearly from 2011. So by 2020， the nation must generate a minimum of 45， 000 MW. In fact， the best option will be to privatize the power sector 9generation and distribution as in telecommunications. In that case， we would be talking of 85，000 MW or more by 2020. To underscore the importance of power to their daily operation， the Manufacturers Association of Nigeria (MAN) announced recently a strategic partnership with West-Pac Electrical Nigeria Ltd， a subsidiary of US-based West – Pac Petroleum Incorporation， towards the installation of 2000 MW of electricity in Lagos Industrial area， within the next four years for the use of the nation’s manufacturers， Osagie (2009， p. 29). It is expected that 400MW will be available before December 2010.

√The nation’s manufacturing sector contributes a mere 4.19% to the national GDP. For Nigeria to be one of the twenty biggest economies in the world， the manufacturing sector must be contributing a minimum of 15% yearly to its GDP and grow it steadily to a minimum of 30% by 2020. Therefore， government’s industrial policy and other economic policies must give the manufacturing sector that enabling environment to accomplish this.

√The Bank of Industry (BoI) should be adequately funded and strengthened to be in a position to finance serious industrial development. Similar agencies in South-East Asia and Far East are heavens for manufacturing concerns. This and other measures (Constant power) will assist manufacturers to attain full industrial capacity utilization.

√There are a lot of fake products in this country. These fake and cheap products are helping to kill our own industries with the attendant high unemployment profile. Government and its agencies should identify and name the specific countries whose citizens or firms export fake and sub-standard products to Nigeria and their local collaborators. Then blacklist and prosecute them and in some cases demand compensation. Government must do everything possible to avoid a situation where Nigeria becomes a dumping ground for all manners of goods. This is also the only way to stem the ugly trend to relocate manufacturing firms to the neighboring countries.

√Agriculture and agro–business must also be given priority attention. Full agricultural development will eradicate the food security problem and provide the much needed raw materials for industries. Indiscriminant ban of raw materials that have no local sources of supply should be discouraged.

√N(yùn)igerian banks should be encouraged to ensure that about 60% of their loan portfolios are to agriculture and manufacturing sectors. The high interest rate of between 18–35% is surely a disincentive to industrial advancement. To encourage investments in the manufacturing sector， costs of funds must be made reasonable and achievable. Interest rate should be between 5 -7.5%. In most advanced nations， it is lower.

√Manufacturing firms currently pay multiple taxes and levies to the three tiers of government. Some of these include: withholding tax， value added tax (VAT)， land use charge， sales tax， tenement rate， interstate revenue， off–loading and loading levy， highway haulage levy， cement haulage levy， signboard and advertisement permit fees， stamp duties， etc. The Federal government should harmonize these taxes and levies. For example， identify taxes/levies to be paid: to local governments; to state governments; and then to the federal government. The harmonized taxes should now be enforced across the country.

√Efforts must be made to address the persistent congestion in the nation’s sea ports. Clearing procedures should be in line with the recommendations of UNCTAD. Government should implement the recommendation of the 48 HRS Clearing Committee.

√Due to the prevailing harsh economic conditions， indifference or ignorance， many manufacturing outfits (mostly the small scale ones) are not members of MAN， an important trade association. They are encouraged to be members of MAN， while those inactive members are advised to be active. Membership of MAN， has a number of benefits which include: credibility as a manufacturer; access to business information; capacity building for members; recognition by government; public policy advocacy; business linkages; direct intervention on problems affecting members; consultancy/advisory services; and patronage of made–in–Nigeria products， (MAN， 288， p.17).

√MAN should sharpen its public policy advocacy machinery to guarantee greater influence on policies and matters that affect the industrial sector. MAN can also do this encouraging its members to contest elections into the National Assembly and lobby for other appointive posts to influence government policies in its favor and for the benefit of our economy.

√Similar to the above， MAN should used its representation on the under listed numerous government boards to influence government policies its favor: Bank of Industry; Standards Organization of Nigeria; National Agency for Food and Drug Administration and Control; Nigeria Customs Service; Onne Oil Gas Free Zone Authority; Nigerian Shipper Council; Raw Materials Research Development Council; Industrial Training Fund (ITF); Corporate Affairs Commission; Nigerian Export Promotion Council; Nigerian Export Promotion Council; Nigerian Export Import Bank; Governing Board of Council of Registered Engineers in Nigeria (COREN); Nigerian Export Promotion Zones Authority; Governing Council of Federal Polytechnics; National Biotechnology Development Agency; Tariff Review Board; Utilities Charges Commission; National Advisory Council on Cooperative Development; National Science Technology Fund (Board of Trustees); Nigerian Export Credit Guarantee Insurance Corporation; Productivity， Prices Incomes Board (PPIB); Advertising Practitioners Council of Nigeria (APCON).

√It has been observed that a major factor in the ineffectiveness and inefficiency of governments’ policies and programmes on entrepreneurship development in Nigeria is inconsistency， insincerity and corruption. As a result， such regulatory agencies as Standard Organization of Nigeria (SON)， Economic and Financial Crimes Commission (EFCC)， National Agency for Food and Drug Administration and Control (NAFDAC)， etc， should be adequately empowered and independent by removing any administrative or legal bottlenecks which may hinder their effective operation. Their employees should be adequately motivated to avoid corrupt tendencies.

√All research and technology oriented government agencies should be revitalized and given adequate financial resources and administrative support to actualize their mandate， in aid of industrial development in this country. Efforts should be made to also commercialize their research findings.

√The Uruguay Round Agreement and the growth of regional blocs have made it compelling fro African countries to speed up regional integration schemes. Additionally， in view of the high propensity of government and its agencies to import rather than patronize domestic industries， we agree with MAN， in recommending the enactment of relevant laws in line with what obtains in the United States of America and India on procurement to the effect that:

(a)Where a domestic industry produces a commodity or services， government and its agencies must procure their requirements locally even if the price of such products is 25% higher than that of comparable import item， and

(b)Where government or its agency fails to patronize the domestic industry， the affected company or companies may seek redress and obtain compensation for this neglect.

√Efforts should be made by all tiers of governments in concert with the private sector， to create an enabling environment by constructing new industrial estates or districts. Most of the few industrial estates in operation in Nigeria were constructed during the colonial era and the regional governments in the 1950s and early 1960s， especially for large-scale industries， especially subsidiaries of multinationals in the country. The construction of industrial estates for indigenous enterprises by state governments in conjunction with the private concerns will minimize the time project promoter’s use in looking for land and run –after Certificates of Occupancy (C of O)， which usually lead to the diversion of bank loans meant for the construction of factories. Clusters of firms into industrial estate will enhance efficiency， facilitate grouping of firms into industrial or trade associations， promote inter-firms relationship to enable them discuss new strategies. Cluster of firms will facilitate promotion of basic infrastructures， such as energy， water; good road network and technical and financial support services to group of firms which will enable them exploit economies of scale in both the domestic and export markets. Other examples of clustering firms in particular areas are the Sinos Valley in Brazil， which has for the past 40 years been used as an Industrial estate by over 600 export–oriented shoe–making firms sand over 120 tanneries， and the Silicon Valley in the United States， a region of high tech enterprises， and a heaven for venture capitalists. Others are Arezzo and Modena in Italy; Valencia in Spain; Nuremberg in Germany; and Gnosjo in Sweden. All these are places for high concentration of industrial activities.

√There is need for the nation’s engineering infrastructure to be established in order to facilitate the local production of machinery and equipment which will strengthen the industrial growth and development of the economy. Again， concrete effort must be made towards encouraging domestic innovations and inventions， as this will facilitate the reduction of franchise agreements which preclude Nigeria manufacturers from exporting and massive gains in foreign exchange (payments for franchise agreements). As is the case in Malaysia， India and China， there must be deliberate policy on nationally acclaiming and rewarding any invention. These national honors serve as motivation to inventors and surely will lead to economic， industrial and technological break–through.

√Finally， there must be consistency in policy implementation; there is need to create competitiveness， and have in the economy a highly skilled and trained labor force. All equipments， machinery， spare parts， etc， meant for agriculture and manufacturing should be duty free. And all other industrial incentive schemes， such as: Bonafide Manufacturers Scheme (MBS); Export Expansion Grant (EEG); Sector–specific concessions/waivers， etc must be implemented religiously and transparently. To increase the international competitiveness of local manufacturers， federal government， its agencies and the organized private sector must design strategies to take advantage of the following: The Uruguay Round Agreement; African Growth Opportunity Act; New Partnership for African Development (NEPAD); Common External Tariff (CET)， the ECOWAS market; The African Union; among others. The target will be for indigenous manufacturing firms to be making a minimum of 25% of their turnover across the border.

√To achieve this， the Nigeria Export Promotion Council (NEPC) has to be up and doing. The country’s export processing free trade zones have to be fully alive. NEPC will have to partner the following stakeholders: Manufacturers Association of Nigeria Export Group (MANEG)， Nigerian Association of Small and Medium Enterprises (NASME); Nigeria Association of Chamber of Commerce， Industry， Mines and Agriculture (NACCIMA); Small and Medium Enterprises Development Agency (SMEDAN); Nigeria Association Small Scale Industrialists (NASSI)， and other professional bodies that may vital role to play in export promotion. That will be the right direction in the guest to having our own multinational corporations.

CONCLUSION

The manufacturing sector is the bedrock of development. Having highlighted the harsh environments under which the nation’s manufacturing sector operates， this article gave far–reaching strategies for its development and growth. Nigeria can only be a developed economy with a strong and dynamic manufacturing sector.

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