Determinants of Public Policies and the Manufacturing Sector in Nigeria (1997-2013)

Abstract

The study examined the determinants of public policies and the manufacturing sector in Nigeria using 17years time series data spanning (1997-2013). Secondary data used for this study were sourced from CBN statistical bulletin and other relevant publications. Hypotheses were formulated and tested using the Ordinary Least Square (OLS) estimation technique. The result shows that, there is a negative significant relationship between excise duty, and capacity utilization. There is also a negative significant relationship between employment rate and capacity utilization. The study is also reveals a positive significant relationship between lending rate and capacity utilization. Therefore the study recommends that, local manufacturing industries should be protected from multiple taxations by persuading the Federal Government through the National Assembly that will define the taxing powers of the three tiers of government in the country. Government should create long-term funding windows in the manufacturing sector especially the SMIs. Policies that should develop the manufacturing sector must conform to the standard of international best practices especially in the area of employment generation. Policy advocacy should be established to link between the maximum banks lending rate and the minimum rediscount rate (MRR) of the Central Bank of Nigeria.

Key words: Determinants, Public, Policies, Manufacturing, Sector and Nigeria.