Trend analysis of the performance of Nigeria’s Manufacturing Sector, 1960-2010

Abstract

This paper examined the performance of the Nigerian manufacturing sector for fifty years (1960-2010) using such performance indices as manufacturing sector real GDP, percentage contribution to the Gross Domestic Product, index of manufacturing production, and percentage average manufacturing capacity utilization within this period. The major finding was that despite many policies and developmental initiatives undertaken by successive civilian and military administrations since independence, the Nigerian manufacturing sector has grossly underperformed in relation to its potential due to several daunting challenges facing the sector. The data analysis revealed the unimpressive state of the manufacturing sector over the years, its low percentage contribution to GDP, as well as the effect of the fluctuating average manufacturing capacity utilization on the growth rate and productivity of the sector. The study recommended that the key to reversing the poor performance of Nigerian manufacturing is an increase in adequate capacity utilization to boost local manufacturing and export.

Keywords: Manufacturing sector, industrialization