CHAPTER ONE
INTRODUCTION
1.1 Background to the study
The Nigerian industrial sector has largely been dominated by the use of raw materials that are imported and that has made the industrial sector more capital intensive rather than labour intensive. The industrialization strategy aims at achieving greater global competitiveness in the production of processed and manufactured goods by linking industrial activity with primary sector activity, domestic, foreign trade, and service activity. Industrial development is generally believed to be a catalyst for rapid growth and development of any economy, be it developed, developing or under-developed. It is usually argued that industrialization is capable of increasing the pace of growth and ensuring swift structural transformation of the economy. The Bank of Industry (BOI) established in 2000, was introduced as a development institution to accelerate industrial development through the provision of long-term loans, equity finances and technical assistance to industrial enterprises.
Most of the raw materials used by industries in Nigeria are imported, the growth in Nigeria’s imports has an upward trend from 1981 till date.
Looking at the trend of development of Nigerian’s industrial sector with respect to growth in Nigerian’s import, it becomes necessary to examine the impact of import growth on industrial sector development. Therefore, the study is set to ascertain the impact of import growth in the development of industrial sector in Nigeria.
1.2 Statement of problem
Industrial development with its gains which ranges from increased employment opportunities, abundance of goods and services more favorable balance of trade , better income etc. to improve standard of living is not fully utilized in the Nigerian economy and as such as the growth and development suffers a huge set back. Although the government has developed different policies and programs in the past that are aimed at boosting industrial development in the country, most of these policies though magnificent on paper have failed woefully in the area of implementation while some of them did not see the light of the day, others were abandoned halfway and funds meant for the programs were misappropriated therefore this study was designed to investigate the impact of import growth on development of industrial sector in Nigeria.
1.3 Research questions
The following question were posed to guide the study
1. How does import growth impact on the industrial development in Nigeria?
1.4 Objectives of the study
The broad objective of the study is to determine the impact of import growth on the development of industrial sector in Nigeria.
In specific terms, the objective of this study is to:
- Estimate the impact of import growth on industrial output in Nigeria.
- Research hypothesis
1. Import growth does not impact on the industrial development in Nigeria.
1.6 Significance of the study
This study aims at investigating the impact of industrial sector development on Nigeria import growth at large and hence, its impact cannot be over-emphasized. The study will be of great importance to policy makers, government and its agencies, private individuals and firms at large. The study will be also of great importance to students of economics and other researchers who may have interest in industrial sector or industrialization and its impact on Nigeria economy. Finally, the findings of this study would add to the stock of economics literature of Nigeria.
1.7 Scope of the study
The scope of this study will be centered on the Nigerian economy with particular emphasis on the industrial sector between 1981 -2015. The industrial sector as used in this context refers to the sector of the economy that involves deliberate and sustained application and combination of suitable technology, management techniques and other resources to move the economy from the traditional low level of production to a more automated and efficient system of mass production of goods and services (Ayodele and Falokun, 2003).
