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Industrial Zones in Nigeria

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In my last article we mainly looked at manufacturing and stuffs about Nigeria. Local crafts and all other important things you need to know but now we are going to look at Industrial Zones in Nigeria. It is also under manufacturing but lets get into the business very well.

MANUFACTURING INDUSTRIAL ZONES IN NIGERIA

In Nigeria, factory or manufacturing industries are classified or grouped into four major industrial zones, namely:

1. The North-Central Industrial Zone.

2. The Western Industrial Zone.

3. The Mid-West Industrial Zone.

4. The South-East Industrial Zone.

1. THE NORTH-CENTRAL INDUSTRIAL ZONE

The North-Central Industrial Zone is located in the northern part of Nigeria or north of Rivers Niger and Benue. It includes towns like Kano, Kaduna and Zaria. The notable industries here are textiles, food processing, rolling mills, mineral products, motor vehicle assembly and so on. Of all these, Kano has the largest concentration or agglomeration of industries.

Factors Favouring the Location of Industries in the North-Central Industrial Zone

(a) The existence of excellent transport facilities, especially railway and good road network.

(b) Large population which provide skilled and unskilled workers.

(c) Wide range of market.

(d) A lot of agricultural products serving as raw materials and others.

(e) Availability of constant power supply.

(f) Cheap labour supply.

2. THE WESTERN INDUSTRIAL ZONE

The Western Industrial Zone is located in the western part of Nigeria or west of the River Niger. It includes towns like Shagamu, Sango Ota, Ifon, Ewekoro, Ibadan, Ife, Oshogbo, Apapa, Isolo,, Ikorodu, Ikeja, Ogba, Surulere, Mushin, Epe, Ajaokuta. Of all these, Lagos has the largest concentration of industries.

Factors Favouring the Location of Industries in the Western Industrial Zone

(a) Availability of raw materials.

(b) Large population concentration providing wide market.

(c) Availability of constant power supply.

(d) Availability of water supply, both for domestic and industrial uses.

(e) Availability of good roads.

(f) Closeness or proximity to major exporting and importing ports (sea and air).

(g) The presence of infrastructural facilities.

3. THE MID-WEST INDUSTRIAL ZONE

The Mid-West Industrial Zone is located within the former Bendel State (presently Edo and Delta States), which are also located west of the River Niger. It includes towns like Warri, Asaba, Ughelli, Sapele and Benin-city. In Delta State, the main industries include The African Timber and Plywood (ATP), Sapele, Osse Rubber Estate, Iron and Steel Rolling Plant at Aladja, Oil Refinery and Petrochemical Industries at Warri. In Edo State, the major industries are Timber and Plywood Factory at Nikorowa, Oil Mill pressing plant of the Nigerian Institute for Oil Palm Research (NIFOR) at Iguoriakhi and Rubber Processing Plant at Iyanomo and Benin-city.

Factors Favouring the Location of Industries in the Mid-West Industrial Zone

(a) Fertile soil for the cultivation of agricultural products.

(b) The presence of cheap labour.

(c) Constant power supply.

(d) Good road network.

(e) Availability of wide market for its products.

(f) The presence of natural resources.

4. THE SOUTH-EAST INDUSTRIAL ZONE

The South-East Industrial Zone is located in the eastern part of Nigeria or east of the River Niger. It includes towns like Enugu, Onitsha, Nkalagu, Port-Harcourt, Calabar, Nnewi, Aba, Owerri and so on. The main industries here are breweries, motor and motor-cycle assembly plants, coal mining, limestone and palm produce at Enugu; Rolling Mills, foot wears, motor-cycle auto spare parts at Nnewi; Oil Refinery and Petrochemicals at Port-Harcourt; Cement factory at Nkalagu and boat building at Opobo and Calabar. Others include: timber, cosmetics, vegetable oil and chemicals.

Factors Favouring the Location of Industries in the South-East Industrial Zone

(a) Availability of natural resources as raw materials.

(b) Availability of power supply from Kainji (HEP), Oji River (Thermal Station) and Gas (Thermal Station) at Afam.

(c) The resourcefulness and ingenuity of the people.

(d) Wider market for their final products.

(e) Availability of skilled and unskilled labour.

(f) Good road network and railway.

(g) Closeness or proximity to major importing and exporting ports (sea and air).

CONTRIBUTIONS OF MANUFACTURING INDUSTRIES TO THE GROSS DOMESTIC PRODUCT (GDP) OF NIGERIA

The contributions of the industrial sector to the economic development of all nations, including Nigeria, cannot be over-emphasized. They include:

1. Increase in Gross National Product (GNP): The industrial sector through its operations like payment of taxes, which increases the earnings accruing to the nation.

2. Employment Opportunities: Industries provide considerable employment opportunities (jobs) for many people.

3. Diversification of Economy: It helps many countries to diversify their economies and stop depending on only one product, for example, the present Nigeria’s over-dependence on oil or petroleum and gas. Nigeria needs to invest in other sectors in order to have healthy economy in the nearest future.

4. Source of Foreign Exchange: Products of industries that are exported to other countries of the world provide important source of foreign exchange earning to the country.

5. Improvement of Balance-of-Payment Through International Trade: Export of the country’s products of manufacturing industries to other nations of the world, from which industrial machinery and raw materials are imported, will help to improve the balance-of-trade among such countries.

6. Stimulation of Other Sectors: Industrial sectors help in stimulating other sectors such as agriculture, mining, finance, lumbering and so on. It equally provides means of internal savings for development of other sectors.

7. Source of Market for Agricultural Products: This sector also provides a source of market for agricultural products. The industries need most of these products as raw materials.

8. Control of Inflation Due to Mass Production: Products like cars, machinery and so on, can be mass-produced with modern technology. This can help to reduce inflation.

9. Development of Manpower: In order to be able to operate and manage the different aspects or machine in an industry, many people are trained in many different technical areas.

10. Development of Infrastructures: The establishment of an industry in an area stimulates the development of infrastructures like roads, hospitals, telephone, electricity, pipe-borne water supply, schools, etc.

11. Funding of Education and Research: The industrial sector also provide capital for the funding of education and research work in all nations.

SOME REASONS COUNTRIES EMBARK UPON INDUSTRIALIZATION

They ask questions while the teacher reacts to them.

1. To improve the standard of living of the citizens.

2. To increase earning either locally or internationally.

3. To reduce dependence on imports.

4. To generate employment.

5. To reduce dependence on primary products as sources of earning.

6. To boost a nation’s international image.

7. To conserve foreign exchange.

MAJOR PROBLEMS ASSOCIATED WITH MANUFACTURING INDUSTRIES IN NIGERIA

Here are factors that constrain or are responsible for the relatively low level of industrial development in Nigeria:

1. Lack of, or Inadequate Capital: This is not readily available as most Nigerians are poor and have low level of savings. Access to finance or loans from banks is very difficult to obtain because the indigenous investors usually lack collateral securities to obtain them, and is only affordable by big time investors, who definitely have them.

2. Inadequate or Poor Quality Industrial Labour: Nigeria, like other Tropical African countries have a great number of illiterate unskilled labour. But there is a serious shortage of skilled (and even semi-skilled) labour. Hence, the industries will only achieve lower productivity.

3. Inadequate Infrastructure: Lack of, or inadequacy of such infrastructural facilities as good transport system, housing, medical facilities, potable water and electricity in most parts of the country has led to low productivity.

4. Shortage of Raw Materials: When raw materials are either lacking or inadequately available locally, the infant industries are forced to depend on imported raw materials, which are obtained at high cost and delayed in transit. This leads to scarcity and high cost of finished products and hinders large scale production as well.

5. Restrictive Industrial and Administrative Policies: A times, in government attempt to solve some existing problems, they make certain policies that are detrimental to the growth of some industries.

6. Lack of True or Shortage of Entrepreneur: Since what we have are business men who spend money on polygamous marriages, politics, owning fleet of cars, organizing elaborate parties and ceremonies, they are not ready to bear industrial risks. Also lack of capital makes reliable investors uncommon.

7. Over-Reliance or High Degree of Foreign Dependence: Since most products made in Africa are of low quality compared with their foreign counterparts, many people rely or depend on foreign goods.

8. Intermittent or Inadequate Power Supply: Frequent disruption of power supply brings the production activities to a halt for sometimes, while some areas do not even have power supply at all for months!

9. Low Level of Technological Development: Since Nigeria remains technologically backward and cannot produce or manage the necessary machinery required in industries, such impedes industrial growth.

10. Absence of Developed Markets and Low Purchasing Power: Our system of exchange is still under-developed. There is low demand as a result of large scale poverty in Nigeria as a result of low per capita income. This makes the people’s purchasing power low.

11. Political Instability: Frequent or incessant changes in governments coupled with civil wars, insurgencies, banditory, religious crises and youth restiveness in African countries discourage foreign investors.

12. Poor Management: The spate of corruption, embezzlement and negligence of duty, which are common in African countries openly show poor management resulting in low productivity.

13. Competition from Foreign Goods: Many products of our local industries are usually not patronized because, at one hand, foreign goods are of high quality, and on the other hand, high quality made in Nigeria goods are costlier as a result of high production cost and cannot compete favourably with the foreign goods.

14. Ineffective Transport and Communication: Nigeria has dilapidated roads, few air and sea ports, yet, to improve communication system and moribund railway transport. These conditions render our industries to low productivity.

REMEDIES OR SOLUTION TO NIGERIA INDUSTRIAL PROBLEMS

1. Good Government Policies: Government should make favourable legislation and policies to protect local industries and should de-emphasize on the indigenization policy.

2. Establishment of Industrial Banks: This should be set up to provide loans to industrialists.

3. Provision of Transport Facilities: These should be provided to ease the evacuation of goods from the production areas to their markets.

4. Incentives to Local Industries: The government should give local industries good incentives in form of low tax rate or tax holiday, so as to encourage them.

5. Acquisition of Skills: Skills should be acquired and improved on by the people through regular trainings such as seminars and workshops where proper induction courses are delivered.

6. Stable Government: In order to attract foreign investors, government should try as a matter of policy to maintain stable government.

7. Trade Strategy: To boost industrialization in Nigeria, the government can employ the ‘import-substitution’ strategy and ‘export promotion’ strategy.

8. Government Active Participation: There should be active government participation in industrial development, that is, co-ownership of companies.

9. Provision of Regular and Improved Power Supply: Power supply should be improved and made regular in order to ensure steady and dependable supply as well.

10. Provision of Infrastructural Facilities: This will help to boost industrialization in Nigeria.

11. Creation of Industrial Zones or Estates: These will, and when well equipped or provided with all the infrastructural facilities, provide conducive environment for industrialization.

Please do not be intimidated by the language. They are just cities situated in Nigeria. That's all.

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