Nigeria's Industrial Policy and its Binding Constraints.

Nwaogwugwu, I.C ; Shittu, A ; Ejumedia, P (2016)

Staff Publication

Article

The drive for dependable manufacturing sector has consistently gained acceptability since independence. This is reflected in the various industrial policies adopted in the country ranging from the Import Substitution Strategy (ISS) in the 1960s to the recent Nigerian Industrial Revolution Plan (NIRP). In spite of these policies, the country has continued to struggle in its quest for industralisation. This study is therefore an attempt towards providing an in-depth analysis of the industrial policies in Nigeria with an objective of finding out why these Policies have continued to fail while looking at the prospects of Industrial sector vibrancy in Nigeria. To achieve these goals, the paper provides a systematic appraisal of the Industrial Policies in Nigeria between 1960 and 2014. The study rely basically on descriptive statistics derived mainly from the identified binding constraints which have continued to obstruct the growth of the sector. These include: Policy Constraints, Physical and Financial Infrastructure, Institutional Bottlenecks, Corruption and Over-bloated Bureaucracy, Neglect of the Agricultural Sector, Multiple Taxation, over reliance of the Industrial Sector on imported input, high interest rate among others. Consistent policy with respect to these problems and religious implementation of the same will help Nigeria's industrial sector.