PROBLEMS OF
INDUSTRIES IN NIGERIA
Industries in Nigeria are faced
with a lot of problems, which hinder rapid industrial development.
The problem
of manpower of industrialization is a major constraint to industrial
development in Nigeria. Shortages are experienced not only for semi-skilled
labour but also at organizing and managerial levels.
Another
problem is shortage of entrepreneur. It is the entrepreneur who brings together
the factor of production for the purpose of production. It is the-entrepreneur
who initiates, Organizes, make decision. Take risks, innovates and sometimes
also manages in Nigeria; entrepreneurs are very few in number.
Modern
manufacturing industries required large amount of capital per worker. This is
still a major problem in Nigeria because any substantial increase productivity
will depend on capital formation.
One other
obstacle to industrial development is the narrowness of market opportunities.
The situation is brought about by a number of factors which include lack of
capital for storage inadequate and costly transport, and industries in Nigeria
have not yet gained access to market opportunities in developed countries.
Also
infrastructural facilities and unreliable supply of water have and are still
hampering industrial development.
Other problem facing industries
in Nigeria are competition from foreign goods, high degree of foreign
investment that is, capital requirement of most Nigerian industries are
supplied by foreigners, scarcity of foreign teaching partners willing. It is
hard to find competent technical partners willing to set-up industries in
Nigeria in collaboration with indigenous businessmen and restrictions and
administrative problems which include delays ingesting licenses difficulties in
obtaining industrial machinery from abroad.
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