Why industries fail in Nigeria - The Hope Newspapers

Why industries fail in Nigeria

Admin 22 Nov, 2017 News, Viewpoint

By Osuola Deborah
For Nigeria to be ranked as one of the developed countries in the world, we must work on our idle industries and encourage the establishment of new ones.

Many countries that were nothing compared to Nigeria in the past have become  places where we run to for a better life.

Where are the rich people in Nigeria? Why do we run out of Nigeria to develop other countries where we pay higher taxes, where our people are never given equal treatment. As a result of this mentality, we have lost so much money and assets abroad. We have failed to look beyond the period of oil boom. These are some of the questions that came knocking and beg for answer.

Where are our textile industries?

 Where is our steel company?

 Where are our oil palm companies?

Our politicians spend millions of naira to attain a political position, while the money is more than enough to establish or start new business in Nigeria.

Oh! They want to make name ? Or want to be recognized, but they have forgotten that it is only limited to Nigeria. The only name we can make for ourselves is to establish  industries and be called by them.

This will cut across different countries. Let’s take for example, Ford cars are produced by Henry Ford, Dangote Cement is produced by Dangote. These names cut across the whole world.

If these industries are put in place, they will boost our economy, unemployment rate will reduce, crime rate will reduce and our country will have a better life and be proud to bear that name “Giant of Africa” once again.

These are some of the reasons why industries fail in Nigeria.

  1. Corruption: Corruption has eaten deep into our economy to the extent that our children too are not left out. Embezzlement of funds released by the government to develop or resuscitate our industries, awarding contacts to people that are not qualified simply because of gratification, awarding contracts to people for political gains and using substandard products or materials for the execution of projects.

Some contractors are fond of executing shoddy jobs in order to guarantee quick patronage, while those in charge of electricity keep on sabotaging the system, thereby subjecting the masses to avoidable hardship. Corruption must be tamed, if our manufacturing industries must rise again.

  1. Stable power supply: Industries need stable power supply to carry out their operations. The cost incurred on petrol, diesel or gas required for their production is too high. That is also one of the reasons why some goods are expensive. Without power supply, there is no industry. We need constant and stable power supply for our industries to thrive.
  2. Terrorism: Terrorism is another factor that leads to the failure of our industries. In a situation where we have pipe line vandalisation, kidnapping, riots and protests, agitation here and there, these acts will continue to deter foreign investors from coming into our country and discourage private investors as well.
  3. Poor patronage of our own locally made goods: It is already registered in our memory that goods produced in Nigeria, that is, made in Nigeria products are fake or substandard. I often give kudos to the Igbo for manufacturing sandals, shoes, belts and other products. It is left for the government to provide the enabling environment for them to improve on their products.

Most of the made in China, Japan, Spain and Italy shoes we wear can also be produced in Nigeria. Our ego and taste are so high that our home made goods are reserved only for the poor. These people can also be sent abroad for training and re-training and provided with the necessary equipment to produce or manufacture what they have learnt.

5.Lack of protection :Government has also failed to protect our infant industries from the established ones or stronger ones. Both the infant and the established industries need protection from the government in the area of tax, and making the law a little bit flexible for them to sustain their operation. Some industries have shut down operation because they were burdened by taxes, that is, double taxation or excessive taxation .

Osuola Deborah is an Intern with The Hope Newspaper  

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