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It may be described as the transformation of raw materials such as agricultural, mineral, water and forest resources into arbcles or commodities for trade or human consumption. Manufacturing is imply the polices of turning raw materials into new products by using mechanical chemical processes.

Classification of Manufacturing Industries: Manufacturing industries in Nigeria can be grouped into three main categories:

  1. 1. LIGHT INDUSTRIES: Light industries are common in tropical African countries such as Nigeria, Ghana etc.

Factors Affecting Location Of Industries

  • The availability of raw materials at a particular place e.g. limestone at Ewekoro is used in the production of cement at Ewekoro.
  • Industries tends to develop where there are people to buy the products.
  • Transport inform of roads or railway to move the finished products to the market and raw materials to the industries is very important.
  • There should be adequate supply of skilled men power and other categories of labour

Problems facing Industries in Nigeria

  • There is lack of capital needed to establish and maintain industires
  • Skilled workers are skill limited in supply. Experts are still being brough in from developed countries for highly technical operations.
  • Majority of the industries relies on imported raw materials which is often not regularly supplied.
  • There is adequate and inefficient infrastructural facilities such as electricities, good roads, telephone etc.

importance of Manufacturing In Nigeria

  • It provides employment to the citizens
  • Provides essentials goods needed
  • Saves foreign exchange that would have been wasted on importation of foreign goods.

Economic reforms are policies initiated or introduced by the government to increase economic efficiency and rapid development.

Reasons for Economic Reform

  • To increase economic development
  • To increase private sectors participation in the economy
  • To make economic sectors efficient
  • In order to attract foreign investors
  • To reduce government financial burden
  • To get rid of government involvement in some aspect of the economy

Government Economy Reforms

The following are government economic reforms

  • Privatisation
  • Commercialization
  • Deregulation

PRIVATISATION: This is referred to the sole government owned firms to private individuals. It could be portal or total.

Benefits of Privatisation

  • It promotes competition
  • It brings efficiencies
  • It brings about innovations
  • Through supervision
  • Increase profits
  • Job opportunities
  • Changes workers attitude to work
  • Bring about new innovation

See also







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