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PRODUCTIVITY AND ECONOMIC GROWTH

By

Dr. S.I. Udabah

Department of Economics, Enugu State University of Science & Technology,Enugu.

Like most countries, our over-reading development objective is rapid increase in the standard

of living of all Nigerians. The standard of living of all depends on the total value of goods and services

produced in the country (G. D. .P), and how the people are benefiting from such available goods andservices for their economic well-being. The standard on living of the people , therefore, depends on

productivity. The rate of production will also determine the rate of growth of the economy.

Productivity is therefore very necessary for rapid economic growth. This paper will discuss therelationship between productivity and economic growth. It further discusses the importance of

productivity and its contributions to economic growth and development of Nigeria in recent years. Itwill also discuss the measurement of productivity and strategies to improve it in Nigeria.The paper is therefore of the view that productivity determines the living standard of the people

and the degree of economic growth and development.

I. INTRODUCTION

We live in a competitive world economy and therefore nations must have to work hard and

produce goods and services so that they can compete favourably with other nations. The ability tocompete with other nations is very vital for their survival as a nation. Since their survival depends onthe ability to provide basic goods and services to the people, there is need to increase productivity in all

sectors of the economy.

The question of efficiency of resource use or productivity performance is one theme that hasgenerated tremendous interest among economic scholars for decades. A common thread runningthrough this discourse is a strong affirmation of the central place of productivity enhancement in the

precipitation and perpetuation of growth. This conclusion breaks paradigmatic bounds. Indeed, all themajor schools of economic thought from the classicists to the structuralists are agreed on this.

In developing countries, the need to improve productivity performance is particularly germanegiven the less propitious economic situation that confronts most developing countries today manifested

by way of massive balance of payments deficits and chronic foreign exchange shortages. This has theeffect of undercutting output growth via the procurement of factor inputs as expenditure on off-shore

inputs which constitute a large chunk or total inputs, will have to be cut back significantly. Thus totrigger and sustain growth momentum, productivity enhancement is absolutely critical.

Successive development plans and annual budget in Nigeria perhaps persuaded on this need,

have not been lacking in the articulation of productivity promotion measures and initiatives. This isreflected, among others, in the setting up of a National Productivity Centre and observance of a

National productivity day. The government in the past also adopted various mission oriented strategiesintended to achieve specified national economic objectives. The mission- oriented strategies include:

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(a) Import-substitution policy

(b) Operation feed the Nation(c) The Green Revolution

(d) Technology Transfer

(e) Backward integration policy(f) Small scale Industries Programme

(g) The Directorate of foods, Roads and Rural infrastructure(h) The better life for Rural programme; the Family support programme and

(i) Major economic policy changes.

It is important to note that since 1986, major economic policy changes have created a radically

different environment for industry, e.g. policies that liberalized trade, eliminated subsidies andpromoted foreign investment are wont to impact considerable on the productive environment

through changes in prices and in quantities or qualities of inputs and outputs.Nigeria like other developing countries of the world view the industrial sector as the leading

sector in every economy essential for high rates of present and future growth and development.The industry is relied upon to train labour and absorb it into high- paying jobs and to reduce theserious unemployment and under employment problem of agriculture. Industry is required to

satisfy the rapidly growing demand for manufactured goods which developing nations cannotimport because of balance of payments difficulties.

High productivity in industrial, agricultural and the service sectors are essential for rapid

economic growth and development of Nigeria. Changes in the relative importance of agricultureand industry have been recognized as the core of the process of growth. In industry, it is the role of

manufacturing sector that appears to be the strategic factor in modern economic growth.

Before and immediately after independence in 1960, agriculture was the mainstay of theNigerian economy, accounting for more than one-half of the Gross Domestic Product ( G D P ) and

more than three- quarter of exports earnings. The contribution of agriculture to G. D .P movedfrom 50 percent in 1970 to 38.8 percent in 1991 and by 1995 this has declined further to only 32percent, (see Table 1). In fact, by mid 1980s, Nigeria has moved from a position of self

sufficiency in basic foodstuffs to one of heavy dependence on imports as much emphasis wasshifted to the petroleum sector. Thus, the observed drop of relative share of agriculture in

aggregate output reflects the period of windfall from petroleum income when farm production wasdepressed by the massive urban boom and movement of rural workforce to cities (Rural urbanmigration ).

On the other hand, emphasis on industralization as a means of diversifying production patternsand expanding the production base was initially based on import-substitution and semi-processing

of cash crops for export, and later on the establishment of light intermediate and heavy industrialcomplexes in the 70s and 80s. Consequently, the manufacturing sub-sector accounted for about 4per cent of GDP in 1977 and by 1982 it has increased to 11.2 per cent after which it declined to an

annual average of less than 10 per cent between 1983 and 1995.

Thus, the objective of this paper is to analyse the relationship between productivity andeconomic growth. This paper will also look into the performance of both the industrial and

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agricultural sector and their contributions to GDP. The paper is divided into five sections. First,we consider briefly the theoretical issues, definitions and importance of productivity. This is

followed by literature review. The third section deals with the development of productivity in thereal sector. In the fourth section, we try to look into the economic indicators of agricultural and

industrial production in Nigeria. Some proposals to improve productivity are presented in section

five followed by conclusions.

I.1 DEFINITION OF PRODUCTIVITY

The definition of productivity usually varies from economists and business managers. The economistsdefine productivity as the ratio of output to input by industry groups or sectors of the economy.Productivity is also defined as the amount of output produced by each unit of input, where outputs are

measured in physical units. However, business managers tend to reject the economists definition andview productivity as a measure of overall production efficiency, effectiveness, and performance of

industrial organisation. They believe that productivity means quality of output, workmanship,adherence to standards, absence of complaints, customer satisfaction, absentee and turnover rates,

absence of disruption, trouble and other evidence of difficulty in organisations, as well as suchquantitative measurements as units produced or volume of sales.

Finally, let us look at the production function to enable us understand the production process.

Mathematically, a production function can be written as

X = F (L1, L2,. Ln;K1, K2, Kn; M1 M2, Mn) where L1, K1, and M1 represents the various kinds

of labour, capital, and materials that are used in the production of product X.

I.2 THE IMPORTANCE OF PRODUCTIVITY

Economic development in strictly economic terms, has traditionally meant the capacityof a national economy, whose initial economic condition has been more or less static for a longtime, to generate and sustain an annual increase in its gross national product (GNP) at rates of

perhaps 5-7% or more (Todaro, 1985:83). Another important economic index of developmenthas been the use of rates of growth of per capita GNP to take into account the ability of a nation

to expand its output at a rate faster than the growth rate of its population. Economicdevelopment viewed in this way has to do with growth of per capita GNP which will alsodetermine the standard of living of the people. The overall economic well-being of a population

depends on productivity, i.e., how much of real goods and services is produced and madeavailable for consumption and investment by the people.

According to Tadaro, development is an economic phenomenon, in which rapid gains inoverall and per capita GNP growth would either trickle down to the masses in the form of

jobs and other economic opportunities or create the necessary conditions for the widedistribution of the economic and social benefits of growth. Sustainable increases in national

productivity is the only way to achieve these economic objectives which will facilitate thedistribution of economic and social benefits to the population. The elimination of poverty,

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unemployment, inequality, and the sustained elevation of an entire society and social systemtoward a better and more humane life, therefore, is only possible through increases in

productivity.

The expected increase in national productivity should be in the sectors of our economy:

a. Industrial sector

b. Agricultural sector, andc. Service sector

Nigeria like other developing countries of the world view the industrial sector as the leadingsector in every economy essential for high rates of present and future growth and development. The

industry is relied upon to train labour and absorb it into high-paying jobs, and to reduce the seriousunemployment and under employment problem of agriculture. Industry is required to satisfy the

rapidly growing demand for manufactured goods which developing nations cannot import because ofbalance of payments difficulties. Finally, industry is wanted for reasons of national security and pride.

High productivity in industrial sector is required for economic growth and development. Suchrapid growth is only possible through industrialization programme. This view is based on the empirical

observation which shows that all developed and rich nations are mostly industrialized while thedeveloping or poor nations are agricultural and not industrialized. Industry is wanted because itgenerates skilled labour, trains managers, and provides enterpreneurs all of which are in scarce supply

in developing countries. In Nigeria, the need for rapid increase in industrial employment is based onrapid growth of the labour force. Furthermore, the demand for manufactured goods is rising much

faster than our capacity to import. This is why there is need for us to increase our domestic industrialproduction.

II. LITERATURE REVIEW

Let us take a look at the contributions of some authors with regards to the subject;

According to T.E. Reid and S.P Dubas, (1983), the efficiency or productivity of a programme may bedefined as the ratio of units of output (eg. Patent or immigration applications processed, pieces of mail

delivered, licenses issued, cheques issued) and units of input. It also includes energy supplied, quantityand quality of manufactured goods and services produced by different organisations, services renderedby teachers, legal advisers, etc. Some business organisations also consider productivity as profit made

during a specific period of time. Making more profit for them means that productivity is high and lessprofit means that productivity is low.

In contemporary economic theory, production is formally defined as the process of creatingeconomic goods, including material goods and personal services. In everyday business usage, however

the term lacks any such precise, universally accepted definition. Normally, the businessman thinks ofprocess of production as concerned solely with things. To him, production means growing something,

making something, or transforming something. Under this concept, the productive process is limited to

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activities that are applied to forms of matter. Production, so regarded, includes agriculture andmanufacturing but excludes transportation, trade, marketing, and the performance of personal services.

The classical economists, Adam Smith (1723-1790), David Ricardo (1772-1873), and John

Stuart Mill (1806-1873), adopted and broadened the definition of production. They included

manufacturing as an element in the creation of wealth and introduced the concept of vendability production for the market rather than in accordance with the dictates of a natural economy.

Nevertheless they reserved the term production for the description of such activities as resulted fromthe agricultural and the extractive processes and from the manufacture of useful material object. They

continued the emphasis on form or materiality as an essential of all productive activity.

However, in the thinking and writings of William Stanley Jevons (1835-1882) and Karl Menger

(1840-1921), the meaning of production was widened to include the services performed by personsengaged in transportation, marketing, trade and so on. This broadening of scope came about largely as

the result of a theoretical refinement of the concept of utility - the power to satisfy a human want.

Solow (1956) in his contribution to the theory of economic growth differed significantly fromthe typical Keynesian concern with fluctuations in aggregate demand. He on his part, assumes fullemployment, of both capital and labour. In addition, the fixed technical coefficient of the production

function of Sir Harrod and Domar is abandoned in favour of one that allows substitution to take placebetween factors. Solow stated with the basic construct Y (t), which he stressed to be total output.part of it is consumed and the rest saved and invested. He maintained that the fraction of output saved

is a constant S. Then the rate of savings is:Sy (t) (1)

While the stock of capital is K (t), the net investment is dk/dt or K which represents increase in thiscapital stock. The basic identity that follows at once is:

K = sY ..(2)

Since this is supposed to represents a long run growth model he represents his production function as

Y = F ( K ..L) (3)

If we substitute (2) in (3) we have

K = sF (k,L) ... (4)

Equation (4) states that change in capital is a function of capital and labour multiplied by the saving

ratio. If we proceed in the spirit of the Harrod Domar model and barring a technological change, wecan write.

L(t) =L 0ent .. 5

n represents the Harrod natural rate of growth. Labour in (4) stands for total employment whilelabour in (5) represent the available supply of labour. Inserting (5) in (4) we have:

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K = sF (K, L 0ent . 6

Equation (6) determines the time path of capital accumulation that must be followed if all available

labour is to be employed.

Meade (1961) in his contribution to the neoclassical growth theory, came up with a model of output as:

Y = F (k, L, N, t) 7

Where: K is capital

L is labour

N is natural resources including Land andt as technical progress.

He further stressed that for a net output increase we will have:

Y = VK + WL + Y 8

Where s represents increments and V, and W marginal products of capital and labour respectively,while Y1 takes the place of t. He stressed further that growth in output is not necessarily the best

yard stick, but rather growth in per capita output which he represents as:

Y = Uk + QL + r .. 9

Where U = Vk/y (the proportionate marginal production of capital)Q = WL/y (the proportionate marginal product of labour)In order words, the growth rate of output y is the weighted sum of three other growth rates, viz, thegrowth in the stock of capital, (K) plus the growth rate of population (L) plus the growth rate of

technology (r) weighted by U and Q respectively. But the real of growth of any economy is actually,the growth rate of real income per head. If this is the case, we have

y-1 = Uk (1-Q) L + r .. 10

Equation (10) exhibits diminishing returns tendencies; i.e, (1-Q)L. In a nutshell, as quantity of Labouris increased with a given amount of capital, there is a tendency for productivity to decline. Output is a

function of two factors capital and labour. This paper is of the view therefore that for productivity toincrease there is need for increases in capital, labour, natural resources and technical progress.

III. DEVELOPMENT AND PRODUCTIVITY IN THE REAL SECTOR (GROSS

DOMESTIC PRODUCT.)

The economic performance of Nigeria depends on maintaining increases in domestic output.(Table 2) provides data of Nigerias Gross domestic product at 1994 factor cost. It shows that

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in 1998, the real Gross Domestic product (GDP) rose by 2.4 per cent compared with 3.2 percentin 1997 and the average growth rate of 2.9 Percent in the proceeding three years. From

available record, (see Table 2), aggregate domestic output increased at a lower rate in 1998 thanin 1997 and 1996, (CBN 1998: 89).

Table 2, also shows that the oil sector GDP which accounted for 11.6 per cent of total GDP declined by7.6 per cent, in contrast to the 1.4 per cent increase in 1997. According to CBN report (1998:89), the

non-oil GDP which accounted for 88.4 per cent of total GDP was wholly responsible for the increase intotal output. It rose by 3.8 per cent, which represented a modest improvement over the 3.4 percent

increase recorded in the previous year. The non-oil sector from indication is playing a significant rolein the economy.

Table 2 shows that there was a sharp decline in oil sector GDP. The major reason for this was thedrastic decline in world demand for oil and prices during the year. Furthermore, in 1998, the main

sources of growth of the aggregate domestic output were agriculture, finance and insurance, as well aswholesale and retail trade. The performance of both agricultural and industrial sectors were

encouraging in 1998. Agricultural production continued to record modest growth, though lower than in1997. The major reason for this performance was attributed to favourable weather conditions. Theperformance of the industrial sector was not encouraging. Output in this sector contracted by 4.7

percent, in contrast to the modest increases recorded in the proceeding two years. Available recordshows that all the components of industrial output manufacturing, minining, and electricitycontributed to the overall decline (CBN Annual Report and Statement of Account 1998). The low rate

of growth of the manufacturing sector during the period under review was attributed to the effect of:

(a) Persistence low demand,(b) High cost of operation,(c) Inflation,

(d) Acute shortages of fuel and frequent outages in electricity.

In view of the poor performance of the industrial sector, the growth rate continues to belower than both the targets for the fiscal year and the annual average for the 1998 2000Rolling Plan. The industrial growth rate was lower than the population growth rate which

was estimated at 2.8 percent. The low industrial growth means that the total growth rateof the economy is low. This will increase further the existing problems of unemployment,

unfavourable balance of payment, poverty, and infact macroeconomic instability.

IV ECONOMIC INDICATORS OF AGRICULTURAL AND INDUSTRIAL PRODUCTION

Let us consider the salient features of both Agricultural and Industrial sectors in Nigerianeconomy.

IV.1 AGRICULTURAL PRODUCTIONOn attaining independence in 1960, the agricultural sector maintained its dominant

position as the major foreign exchange earner. Infact, the sector was the mainstay of theNigerian economy, accounting for more than one-half of the Gross Domestic Product (GDP)

and more than three quarter of export earnings. This sector also provided enough food for the

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teeming population. The contribution of the sector to GDP was 50 percent in 1970 and wasreduced to 38.8 percent in 1991 and 32 percent in 1995 (see Table 1). By mid 1980s, Nigeria

has moved from a position of self-sufficiency in basic foodstuffs to one of heavy dependence onimports, as much emphasis was shifted to the petroleum sector. Thus, the noticeable drop of

relative share of agriculture in aggregate output reflects the period of windfall from petroleum

income when farm production was depressed by the massive urban boom and movement ofrural workforce to cities (Abudu, 1999). The sudden neglect of the agricultural sector by mid

1980s was the origin of our economic problem. The heavy dependence on import of foodcreated balance of payment difficulties.

The major propelling forces for economic growth are therefore the export-orientedsection of agriculture, petroleum production and the more or less manufacturing industry. This

is not to say that the production of locally consumed food crops is to be overlooked. On thecontrary, the overriding importance of food production for nutritional, health and political

reasons cannot be over-emphasized. However, it is the insufficient and low yield production forthe domestic market that is the major cause of the growing scarcity and high price for food

items.

The export of agricultural products is very important for the foreign exchange earning

capacity of the economy. Agricultural exports will enable our ever-growing demand forimports of finished products to be financed. The sector will provide enough revenue togovernment. Furthermore, the original growth incentives created by the export of agricultural

and forestry products are sustained. The sector plays an increasingly greater role as drivingforce of economic expansion.

IV.2 SYNTHESIS OF AGRICULTURAL OUTLOOK FROM 1994 1998

Agriculture is still the most important sector of Nigerias economy. Agriculture grew atan average rate of 7.8 per cent between 1970 and 19974, which was the early years of the oil

era. As oil becomes increasingly important in the economy, agriculture grew more slowly. By1976, growth in the sector had slowed to about one per cent. Between 1977 1979 agriculturehad a growth rate of around 4.2 percent, and contributing about 50 percent to GDP.

Table 2 shows that the share of agricultural production comprising crops, livestock,

forestry and fishing amounted to N45.6 billion or 40.4 percent of GDP, compared with therespective ratios of 39.4 and 39.0 percent in 1997 and 1996. The growth in agricultural outputin 1998 was lower than the average attained in the proceeding five years. At 242.4 (1984

=100), the aggregate index of agricultural production rose by 3.5 percent, compared with 4.1percent in 1997 and the average of 3.7 percent for the period 1994 to 1998 (Table 3).

The increase in the agricultural production according to CBN national survey (CBN1999), showed that the moderate increase in agricultural production during 1998 was attributed

mainly to favourable weather conditions (enough rainfall), more investment to the sector bygovernment, efforts of the National Land Development Authority (NALDA), which made land

available to small farmers, intensive activities of Agricultural Development Projects (ADPs)and other relevant agencies, government comprehensive policies to boost agricultural

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production, provision of credit facilities to small, farmers, more research activities to improvethe sector productivity. Livestock production grew at a reduced rate of 0.5 percent during the

year, compared with a growth of 2.5 percent on the proceeding year. The growth was largelysustained by availability and use of improved vaccines in 1998. Fish production rose by 6.2 per

cent in 1997. The reduction in fish production was attributed to escalation in the costs of fishing

inputs.

IV.3 PROBLEMS AND CONSTRAINTS TO INCREASED AGRICULTURAL

PRODUCTION IN NIGERIA

There is inadequate empirical analysis of the problems facing agricultural production inNigeria. Identification of the problems will be beneficial to agricultural policy makers, the

extension agents, the researchers and the peasant farmers. Knowledge of these problems and theability to plan against them will help immensely to accelerate agricultural production and pave

the way for effective management of both agricultural inputs and outputs in Nigeria.

According to Nwosu (1980:143), Ogunfiditime (1996), the major constraints onagricultural production in Nigeria include:(i) Shortage of capital which include shortage of credit facilities, farm infrastructure,

transport services, high cost of production etc;(ii) Shortage of qualified manpower in key areas;(iii) Inadequate supplies of agricultural inputs;

(iv) Inadequate and haphazard extension service (including the insincerity and lack ofcommitment of official);

(v) Inadequate or lack of effective supporting services such as farm credit to genuinefarmers, marketing facilities, etc;

(vi) The poor condition of feeder roads and other transport facilities;

(vii) Management oriented problems such as the problem of land ownership, land and watermanagement, crop management, energy management problem, inadequate farming

systems, etc. Our land tenure system inhibits investment, expansion, effective utilizationand increased food production. There is need to allow small farmers to have more accessto land in order to boast their output;

(viii) The problem posed by increasing labour shortage in the rural areas in consequence ofrural urban migration;

(ix) The problem of diseases and pest control(x) Nature oriented problems like drought, desert encroachment, as lack of dependable

water resources constitutes an obstacle to agricultural productivity.

(xi) Problem of Technology. There is need to develop and encourage appropriate technologyfor rapid development of the agricultural sector.

(xii) Inappropriate policies by government. There is need for sustainable policy towardsfavourable conditions for farmers.

(xiii) Neglect of irrigated agriculture

(xiv) The instability in the price of agricultural products discourage farmers.

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V INDUSTRIAL PRODUCTION

Economic growth and development are every nations desire. The achievement is afunction of carefully planned and implemented polices and strategies. Meaningful development

must ensure that both agriculture and industry are balancingly developed. One of the reasons for

this is that agriculture provides input to industries. We should also note that increase inmanufacturing productivity depends on the level of industrialization attained by a given

country. Manufacturing is a subset within the industrialization matrix.

Industrial production in Nigeria has been facing many problems over the years. Effort toboost productivity in manufacturing is not strange in Nigeria since independence. Table 4 and 6provides data on index of industrial production in Nigeria. We should observe that the highest

industrial growth rate was achieved during the period 1966 70 when the sector recorded anaverage growth rate of 25.9 per cent, compared with 12.4 and 13.4 percent achieved in the

proceeding periods of 1971/75. This period of highest industrial growth coincided with the oilboom when importation of both industrial machinery and raw material were easily financed

from the huge earning from the petroleum sector. The oil shock of the 1970s gave rise to adecline of 2.8 percent in industrial growth during the period 1981/85.

Modest growth of the industrial sector actually began in 1996/97 but was not sustained.The aggregate index of industrial production, estimated at 133.9 (1985 = 100), declined by 4.7per cent, in contrast to 6.2 and 2.8 per cent increases recorded in 1996 and 1997 respectively

(Table 4 and 6). The reduction in output was recorded in all the major components of theindustrial sector: manufacturing, mining, and electricity, which recorded output declines of 3.9,

5.2 and 3.6 percent, respectively CBN (1998:99)

V.1 MANUFACTURING

According to CBN report (1998:101) the slight recovery in manufacturing production during

the year 1996/97 was reversed in1998. The aggregate index of manufacturing output, estimated at133.1 (1985=100), fell by 3.9 per cent, in contrast to growth rates of 0.4 and 1.3 per cent recorded in1997 and 1996, respectively (Table 5,6).

In the recent past the decline in manufacturing output has been attributable to low capacity

utilization, accompanied by high production costs followed with low consumer demand resulting fromlow purchasing power. Low demand for local manufactures, resulting partly from dumping ofimported goods particularly second hand items into the country is responsible for the poor

performance. Other factors responsible for the low performance of the sector include low demand forgoods as a result of low purchasing power, inflation and high cost of operations. The problem of

scarcity of fuel, diesel, and epileptic electric supply from the National Electric Power Authority(NEPA), is also responsible.

According to a nation wide survey conducted by CBN (1998:101) covering 605 manufacturingestablishments in 29 industrial sub-groups with 59.8 percent rate of response, corroborated the Lull in

manufacturing activities. The survey indicated a decline in output of 56.2 per cent of the respondents in1998. Consequently, the average capacity utilisation rate in the sub-sector decreased from 34.0 per

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cent in 1997 to 32.4 per cent. The rate oscillated from 33.1 in the first quarter to 33.5, 32.8 and 30.2percent in the subsequent three quarters. Aggregate value of output increased by 10.0 percent. The

total cost of operation increase by 21.6 per cent over the level in the previous year owing mainly tohigh cost of raw materials, machinery parts, energy and overheads. This reveals the nature of the

problems facing the manufacturing sector causing low productivity.

Table 7 shows the contributions of the manufacturing sub-sector to GDP. Despite the fact that

the annual average rate is 6.3, a rather minimal contribution but some years deserve some specialattention. After the introduction of SAP in 1986, the only year the manufacturing sub-sector

contributed modestly to the growth of the GDP was 1989. Thereafter, the trends show a continuousdecline. The contributions of the manufacturing sub-sector to the GDP in 1990, 1991, 1992, 1993 and1994 were 2.8, 2.5, 2.4, 1.0 and 0.8 percent respectively.

The last column in table 7.0 measures income per capita strictly from the manufacturing sub-

sector. In 1970 it was N4.30 and increased to N7.50 in 1974. In 1979 and 1980 it increased to N43.4and N46.2 respectively. In 1982 the income per capita reached N89.3 and dropped to N63.0 in 1983.

It reached an all time high in 1991 and reduced to N79.2 in 1994. It should be noted that theseemingly increase from 1981 to 1994 stems from changes or increase in nominal prices since themeasurement is not in constant naira.

The indication is that the manufacturing sub-sector cannot sustain the economy given incomeper capita illustrated. Upon all policies put in place the sub-sector is yet to find its feet. There is need

for modest growth and developments both the agricultural, industrial and other sectors to sustain theeconomy

V.2 CONSTRAINTS IN THE MANUFACTURING SUB-SECTOR

To enable the manufacturing sector play a significant role in the economy, there must exist asound industrial policy. There must exist adequate infrastructure if the manufacturing sub-sector must

thrive.

Adeyemi (1979) as quoted by Ukpong and Iniodu (1991:107) sees physical infrastructure as thetotality of basic physical facilities upon which all other economic activities in the system significantly

depend. The infrastructure facilities that can help the manufacturing sub-sector to strive include:

i. Transportation,

ii. Communication,iii. Electricity, and

iv. Water.

These facilities are not always available. Other constraints are:

a. the state of the technology,

b. dependence of imported capital gods and raw materials,c. high production cost,

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d. cost of fund,e. high cost of foreign exchange

f. inadequate attention to or provision for the small scale business,g. low consumer demand/low purchasing power,

h. corruption/fraud,

i. non implementation of sound industrial policies and j. scarcity of fuel/epileptic electric supply.

Transportation comprises the road system, the water transport and the air transport.

These systems must be effective if the manufacturing sub-sector is to survive. During the period1962-85 (four development periods) the transport sector absorbed a high proposition of thecountrys investment funds. It accounted for 19.0 percent, 23.0 percent, 22.0 per cent, and 15.0

per cent of the total public sector capital expenditure in the first; second, third and fourthdevelopment plans respectively. Yet the transport sub-sector offers little to assist manufacturing

vis-avis industrialization as the overall transport network continues to dwindle

The manufacturing sub-sector cannot survive without adequate electricity. Electricityprovides an indispensable input in manufacturing and service enterprise of many nations.Unfortunately, electricity supply in Nigeria has been terribly poor and epileptic. Residential,

commercial and industrial consumption is below average and poor. Our experience is frequentpower failures, which do not only reduce output of goods and services, but also cause damageto plants, equipment and household appliances. The costs are enormous. Iwayemi (1979:11) as

quoted by Ukpong and Iniodu (1991) says, Demand closely hugs available capacity with theresult that any unexpected increase in demand leads to load shedding - a serious voltage

variations. To succeed in business that demand electricity means buying a generating plantwhose costs is mostly outside the reach of small and medium scale businesses. These small andmedium scale businesses as a result of epileptic electric supply and inability to buy generating

plant can no longer contributed their quote in national productivity.

Water is needed by all. It is essentially an embodiment of human life. But thiscommodity is scarce in Nigeria. Safe water supply must be available at all times both for humanconsumption and for industrial use. When an industry that needs water as input resorts to

sinking private boreholes treating the water and managing it, it invariably adds to cost.

One major problem facing the manufacturing sub-sector is the cost of importing capitalgoods and raw materials in the face of ever-expensive foreign exchange. This has adverselyaffected manufacturing productivity. Example, in 1991 a total of N66937.2 million or 51% of

the GDP was spent on capital goods and raw materials. In 1993, capital goods and rawmaterials import took N107, 659.1 million or 16% of the GDP. Capital goods proper N43.726.2

million or 41 per cent of the total expenditure while the balance of N63,932.9 million went forraw materials import. In 1995, importation of capital goods and raw materials was N438,590.8million an increase of N330,931.7 million or 307 per cent over 1993 figure. Capital goods alone

accounted for N141,163.2 million or 32 per cent of the total expenditure.

It is only recently that the government is incorporating the small-scale industries (SSIs)in planning and budgets. In the past, most policy formulations and implementations were for

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large industries. There is need for the government to pay more attention to the small-scaleindustries, as they will contribute significantly to national productivity and economic growth.

V.3 MINING

Mining sub-sector plays a vital role in Nigerian economy. It contributes so much to the GDP ofNigeria especially the crude petroleum. There was an increase in the tempo of activities in the mining

sub-sector, but this tempo dropped in 1998.

According to CBN (1998:104), the index of mining production fell by 5.2 per cent to 134.1

(1985=100), as against an increase of 9.7 per cent recorded in the previous year (Table 8). Outputreduction during the year was mainly attributed to the fall of 5.0 per cent in crude petroleum, which

accounted for 98.90 per cent of total output in the sub-sector (Table 8). Gas accounted for 0.04 percent, Cassiterite 0.75, Columbite 0.09, Coal 0.13, and Limestone 0.09 per cent of total output. The

output of limestone and gas decreased respectively, by 1.0 and 0.1 per cent during the year underconsideration as a result of the use of obsolete equipment and machinery, prolonged shortage of fuelrequired to power mining machines, reduction in activities of most end-users and non implementation

of government policy on the sub-sector.

V.4 CRUDE OIL PRODUCTION

We have already seen that crude petroleum accounted for 98.90 per cent of total output in the

sub-sector. (Table 8) Notwithstanding, things are not going well in the sub-sector. Nigerias crude oilproduction, including condensates, was estimated at 772.99 million barrels, indicating a decline of 5.0per cent, in contrast to an increase of 9.5 per cent in 1997 (CBN 1998:106). The fall in crude oil

production was attributed largely to Nigerias compliance with OPECS directives on cut onproduction, disruption of oil companies activities in oil producing committees, and delay in cash calls

payment by Federal Government.

V.5 GAS

Gas exploration and productions also closely associated with crude oil production. Gas is very

much needed in most industries. Productivity will increase with steady supply of gas, electricity, andother petroleum products to our industries. However, in 1998, the production of natural gas declined by0.1 per cent to 36.105.4 million cubic metres (MMm3), compared with 2.2 per cent in the previous

year. According to CBN (1998:107), this development was attributed to the decline in crude oilproduction during the same period.

V.6 SOLID MINERAL

According to CBN report (1998:107), at 3.311,409.4 tonnes, aggregate output of principal solidminerals fall by 1.0 percent compared with respective declines of 1.0 and 8.6 per cent in 1997 and 1996

(Table 9). The fall was accounted for largely by decreases of 1.1 and 2.6 per cent in the output oflimestone and marble to 3,282,760.7 and 6,463.4 tonnes, respectively. The production of coal,

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columbite and cassiterite, however, rose by 2.3, 1.6 and 0.7 per cent respectively, over the levels in theproceding year. The major reasons for the sub-sectors poor performance is attributable to the use of

obsolete machinery and equipment, scarcity of spare parts, inadequate working capital, shortage of fueland other petroleum products- all of which constrained the operations of many companies exploiting

solid minerals. Furthermore, the unhealthy investment climate for foreign investors contributed to low

productivity of the sub-sector.

V.7 ELECTRICY

This is one of the problematic sub-sectors in Nigeria economy. According to CBN report(1998), at 15,110.0 million kWh, electricity generation fell by 6.6 per cent, compared with a marginaldecline of 0.3 per cent recorded in the previous year. The decrease was attributed largely to the

deterioration of power generation stations in the country. The consequence has been frequent powerfailures, which do not only reduce productivity but also cause damage to plants, equipment and

household appliances. The costs are enormous to the economy.

VI. POLICY APPROACHES, RECOMMENDATIONS AND CONCLUSIONS

We have discussed the relationship between productivity and economic growth and

development. We have seen that the standard of living of the people depends on the rate of production,which will also determine the rate of growth and development of the nation. From our findings,productivity is low in Nigeria especially in the two major sub sectors-agriculture and industry. This is

responsible for the present rate of poverty, low standard of living, low growth rate andunderdevelopment of the nation. Since productivity is very essential for economic development the

government should do more to increase it. High productivity should be maintained in all the sectors ofthe economy.

As a nation we have the potentials in the vast but poorly exploited resources of land, water,minerals, oil, gas, people and international support. We can use the available resources to achieve

higher productivity and growth.

On the basis of the above analysis, the paper can prescribe fundamental and comprehensive

changes in our economy.

1. Government should invest in the people since high economic performance is a functionof the people working in the country

2. Government should ensure a conducive enabling environment to private sector initiativefor greater investment and productivity

3. Government should pursue a favourable policy framework and provides necessaryinfrastructural facilities- road, electricity, water, etc.

4. Effort should be made to increase agricultural productivity through the supply of

necessary inputs to farmers, provision of credit facilities, marketing facilities, extensionservice officers, capital, including farm infrastructure, transport services, eradicating the

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problem of land ownership through genuine land tenure system, provision of adequatetechnology, intensifying irrigated agriculture, etc.

5. Implantation of various industrialization strategies should continue

6. Encouraging indigenous entrepreneurship.

7. Overcoming our energy problem through proper funding of the energy sector.

8. Rehabilitation of the petroleum industries especially the refineries to put to an end theconstant fuel and other petroleum products scarcity.

9. Privatisation and commercialisation of most sectors of the economy. Massive infusion

of private capital to all sectors of the economy.

10. Encouraging small scale entrepreneurs

11. Rapid investment in research and development

12. Co-operation with the international communities to attract foreign investment.

13. Export promotion.

14. Improving the working conditions, especially housing, transportation, food and healthfacilities, which could substantially improve the workers productivity, and

15. Ensuring Political Stability as democracy is indispensable for sustainable growth anddevelopment.

CONCLUSIONS

The enhancement of productivity of the Nigerian economy is an urgent task for any progressiveadministration. To ensure that this tasks is preformed, not only must the obstacles to productivity

identified above be removed, but the government must also adopt a public policy that gives incentiveand encourages productivity.

This paper is of the view that there is a strong relationship between productivity, economicgrowth and development. There is also a relationship between productivity and standard of living of

the people.

We have seen that both the Agricultural and Industrial Sectors are playing significant role in the

economy in terms of productivity. However, productivity in both sectors are declining in recent years.The manufacturing sub-sector has not meaningfully contributed to the economic growth of Nigeria.

The growth of the sub sector is sluggish and contributes an average of 6.3 per cent of the GDP for theperiod of 1970 1994. The growth in agricultural output in recent years is also low. The sector

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however is contributing more than the manufacturing sub-sector to the economy. This study found thatboth sectors are the leading sectors in every economy and are essential for high rates of present and

future growth.

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REFERENCES

Abba, Alkasum, et al (1985), The Nigerian Economic Causes and solutions,Academic staff Union Universities of Zaria Gaskiya Press Ltd.

Adegbulugbe, A.O. and F.B. Dayo, (1987)Cost Effectiveness of Rural Energy Policies in Nigeria. Alternative Energy Resources

VII, Hemispere Publicship Corp. Washington.

ADR (1993), African Development Report, Abidijan, Cote de voire.

Central Bank of Nigeria (CBN) Annual Report and Statement of Accounts, Various Years.

Havrylyshyn, O. (1990), Trade Policy and Productivity in Developing Countries of Survey of

Literature World Bank Research Observer, Vol.5

Igwe, B.U.N. (1986), Towards a comprehensive Nigerian Mineral Policy, A paper presentedat the concluding seminar of the senior Executive course, No.6 National Institute forPolicy and Strategic studies (NIPSS), kuru.

Iyoha, M.A., Capital Durability and the Golden Rule of Capital Accumulation. A note S.E.J.Vol. XXXVIII, No. 1 July, pp. 93-96.

Meier, G.N. (1970) Leading Issues in Economic Development, London, University Press.

Nwosu, E.J. (1980), Readings in Social Sciences, in E.C. Amucheazi (ed), Enugu FourthDimension Publishing,

Ojo, M.O. (1995), The Challenges for Economic Management in Nigeria, CBN, Economic and

Financial Review, Vol. 33, No. 2,

Ojo, M.O. (1994), Issues in Monetary Policy formulation and Implementation in Nigeria

Journal of Economic management, Vol.1. No. 1.

Olaloku, F.A., et al (1970) Structure of the Nigerian Economy, macmilliam InternationalCollege Edition, Ibadan.

Odife, D. (1989), Structural Adjustment and Economic Revolution in Nigeria, Ibadan,Heinemarn Educational Prooks, Nig. Ltd.

Reynolds, l.G. (ed). (1975), Agriculture in Development Theory, University Press, London.

Soludo, C.C. and Adenikinju, A. F. (1997) Economic Policy and Total factor Productivity inNigeria Manufacturibg Sector, Draft final Report Presented to the Development Centre

IECD, Paris.

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84

Taylor, L.J. (1981) IS LM in the Tropics: Diagramme of the New Structuralistsmacroeconomique, W.R. King and S. Weimanb (eds.) Economic Stabilization in

Developing Countries, Washington Brookings Institution.

Ukpong, 1.1 and P.U. Iniodu (1991) (Infrastructural Polices and their impact on the

Development of the Nigerian Economy in the Nigerian Economy at the Cross Roads:Policies and the effectiveness by J.E.U. Ndebbio and A.H. Ekpo (eds) Calabar,

University of Calabar press.

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TABLE 1: GROSS DOMESTIC PRODUCT AT 1984 CONSTANT FACTOR COST

(PERCENT OF TOTAL)

Sector 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990

Agricultureincluding forestry

Manufacturing

Crude Petroleum andgas

Building &Construction

Housing

Utilities.

34.7

9.9

14.0

4.7

2.6

0.7

35.8

11.2

12.5

3.8

2.6

0.7

37.7

8.4

12.8

3.5

2.8

0.8

37.8

7.8

15.2

3.0

3.0

0.8

40.3

8.6

15.1

1.9

2.7

0.7

42.5

8.0

13.8

1.8

2.7

0.5

41.5

8.4

12.5

2.0

2.7

0.6

41.5

8.7

12.3

2.1

2.5

0.5

40.6

8.2

13.2

2.0

2.4

0.5

39.0

8.2

12.9

1.9

2.3

0.6

Total (percent) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total (N billion) 70.4 70.2 66.4 63.0 68.9 71.1 70.7 77.8 83.5 90.3

Source: Statistical Bulletin, Central bank of Nigeria, Abuja.

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TABLE 2:

GROSS DOMESTIC PRODUCT AT 1984 FACTOR COST(Nbillion)

Percentage Share of Total

Annual Percentage Change

(Growth rate) Activity Sector 1994 1995 1996 1997

11998

21994 1995 1996 1997

11998

21995

1996 1997 19982

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

(12) (13) (14)

1. Agriculture (Cropproduction) 31.04 32.09 33.31 34.74 36.46 30.63 31.00 31.13 31.47 32.27 3.38

3.80 4.29 4.95

2. Livestock 5.22 5.44 5.60 5.74 5.89 5.15 5.26 5.20 5.20 5.21 4.21

2.94 2.50 2.61

3. Forestry 1.32 1.35 1.36 137 1.38 1.30 1.30 1.27 1.24 1.22 2.27

0.74 0.74 0.73

4. Fishing 1.12 1.23 1.48 1.65 1.88 1.11 1.19 1.38 1.49 1.66 9.82

20.33 11.49 13.94

5. Crude Petroleum 12.75 13.07 13.97 14.17 13.10 12.58 12.63 13.05 12.84 11.59 2.51

6.89 1.43 (7.55)

6. Mining & Quarrying 0.31 0.31 0.32 0.34 0.35 0.31 0.30 0.30 0.31 0.31 0.003.23 6.25 2.94

7. Manufacturing 7.28 6.87 6.94 6.96 6.98 7.18 6.64 6.48 6.30 6.18 5.63 1.02

0.29 0.29 0.298. Utilities 0.61 0.61 0.62 0.62 0.62 0.60 0.59 058 0.56 0.55 0.00

1.64 0.00 0.00

9. Building & Construction 2.02 2.07 2.10 2.23 2.33 1.99 2.00 1.96 2.02 2.06 2.48

1.45 6.19 4.48

10. Transport 3.22 3.26 3.32 3.42 3.51 3.18 3.15 3.10 3.10 3.11 1.24

184 3.01 2.63

11. Communication 0.28 0.29 0.30 0.32 0.34 0.28 0.28 0.28 0.29 0.30 3.57

3.45 6.67 6.25

12. Wholesale &Retail Trade 12.59 12.60 12.71 12.90 13.16 12.42 12.17 11.88 11.68 11.65 0.080.87 1.49 2.02

13. Hotels & Insurance 0.50 0.51 0.52 0.53 0.55 0.49 0.49 0.49 0.48 0.49 2.00

1.96 1.92 3.77

14. Finance & Insurance 9.11 9.49 9.86 10.28 10.79 8.99 9.17 9.21 9.31 9.55 4.173.90 4.26 4.96

15. Real Estate 0.29 0.30 0.31 0.32 0.34 0.29 0.29 0.29 0.29 0.30 3.45

3.33 3.23 6.25

16. Housing 2.41 2.49 2.51 2.68 2.80 2.38 2.41 2.35 2.43 2.48 3.32

0.80 6.77 4.48

17. Producers of govt. Services10.38 10.49 10.59 10.75 10.86 10.24 10.13 9.90 9.74 9.61 1.06

0.95 1.51 1.02

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18. Comm, Soc.&Pers Services0.90 1.05 1.20 1.38 1.66 0.89 1.01 1.12 1.25 1.47 16.67

14.29 15.00 20.29

Total (GDP) 101.35 103.52 107.02 110.40 113.00 100.00 100.00 100.00 100.00 100.00 2.14

3.38 3.16 2.36

Non-oil (GDP) 88.60 90.45 93.05 96.23 99.90 87.42 87.37 86.95 87.16 88.14 2.09

2.87 2.42 3.81

1Revised

2National planning Commission Estimates

Sources: Federal Office Of Statistics (FOS), Lagos & national Planning Commission (NPC).

TABLE 3: INDEX OF AGRICULTURAL PRODUCTION BY TYPE OF ACTIVITY

(1964 = 100)

Percentage change Between Average Growthrate

Sub-Sector 1994 1995 1996 1997 1998 (1) & (2) (2)& (3) (3) & (4) (4) & (5) 1994-1998

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Crops . 249.4 255.5 270.0 277.7 288.0 2.4 5.7 2.9 3.7 3.7

(a) Staples. 276.8 285.2 298.1 307.3 316.1 3.0 4.5 3.1 2.9 3.4

(b) Other Crops 146.0 143.7 176.4 166.5 182.4 -1.6 14.4 1.3 9.5 5.9

Livestock . 164.1 171.0 176.0 180.4 181.3 4.2 2.9 2.5 0.5 2.5

Fishery . 67.0 77.6 89.4 99.5 105.7 15.8 15.2 11.3 6.2 12.1

Forestry 128.0 128.0 131.4 132.7 133.5 0.0 2.7 1.0 0.6 1.1

Aggregate 209.7 216.8 224.8 234.1 242.4 3.4 3.7 4.1 3.5 3.7

Revised

Provisional

Sources: Derived from data complied by Federal Office of Statistics (FOS).

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TABLE 4: INDEX OF INDUSTIAL PRODUCTION

Year Manufacturing Mining Electricity Total

Consumption Sectors

Weight 31.90 65.60 2.50 100.001970 24.1 72.2 18.2 41.3

1971 27.3 104.9 24.2 54.8

1972 29.7 122.5 27.5 62.3

1973 36.6 138.0 32.3 72.4

1974 35.5 151.2 35.9 76.2

1975 43.9 119.9 42.3 71.8

1976 54.1 139.0 50.8 85.5

1977 57.5 140.3 58.4 88.6

1978 65.8 127.0 71.7 90.4

1979 97.3 154.4 64.1 120.3

1980 102.4 138.5 74.8 119.0

1981 117.4 96.2 89.4 115.61982 132.8 86.2 94.9 122.9

1983 94.8 82.5 97.1 96.4

1984 83.4 93.0 87.1 91.61985 100.0 100.0 100.0 100.0

1986 96.1 97.8 120.8 103.5

1987 128.4 88.4 118.8 122.1

1988 135.2 95.3 125.1 108.8

1989 154.3 109.2 165.2 125.0

1990 162.9 115.1 124.8 130.6

1991 178.1 120.1 125.3 138.8

1992 169.5 119.9 139.2 136.2

1993 145.5 124.6 142.2 131.7

1994 144.2 121.1 152.7 129.2

1995 136.2 124.2 150.2 128.8

19961

1st

Quarter.. 137.2 127.9 152.5 131.32

ndQuart er. 138.2 128.5 147.5 132.1

3rd

Quarter. 138.5 128.9 145.9 132.3

4th

Quarter. 140.9 130.5 142.4 134.1

19972

1st

Quarter. 129.8 127.7 140.6 128.7

2nd

Quarter. 128.3 132.7 144.4 131.6

1. Revised 2. EstimatesSources: (i) Central Bank Of Nigeria. (ii) National Electric Power Authority. (iii) Petroleum Corporation. (iv) Federal Office of Statistics. (v)Federal Ministry of Mines, Power and Steel.

TABLE 5: INDEX OF MANUFACTURING PRODUCTION

Year/Quarter

Sugar

Confectionery

Soft

Drinks

Beer &

Stout

Cotton

Textiles

Synthetic

Fabrics

Foot

Wear Paints

Refined

Petroleum Cement

Roofing

Sheets

Vehicle

Assembly

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1994...

1995...

1996...

19971..

19982..

19971..

1st Quarter..

2nd Quarter.

3rd Quarter.

4th Quarter.

19982.

1st Quarter..

2nd Quarter.

3rd Quarter.

4th Quarter.

(1)

106.5

59.4

57.5

56.1

56.5

56.1

57.8

55.8

56.4

54.5

56.5

57.3

57.1

56.3

55.1

(2)

148.4

153.2

166.2

157.1

162.1

157.1

157.3

144.7

158.8

167.5

162.1

161.0

162.0

162.3

163.2

(3)

95.2

103.3

107.5

116.7

119.3

116.7

113.8

115.8

118.3

119.0

119.3

118.4

119.2

119.7

119.9

(4)

92.1

89.6

102.1

106.1

94.5

106.1

106.5

108.4

103.8

105.7

94.5

92.1

91.8

95.2

99.0

(5)

1,066.9

799.3

815.9

769.2

706.0

769.2

727.7

865.7

736.2

747.3

708.4

729.9

687.6

711.0

705.0

(6)

59.8

46.6

52.1

49.9

45.6

49.9

53.5

50.2

48.7

47.0

45.6

46.0

44.0

46.4

45.9

(7)

98.4

118.1

122.2

114.0

112.8

114.0

115.9

115.0

113.5

111.5

112.8

112.1

111.5

113.8

114.1

(8)

110.9

117.9

126.4

120.6

119.3

120.6

118.4

114.4

117.4

132.2

119.3

124.6

120.6

119.8

112.2

(9)

95.0

93.0

88.1

91.5

92.3

91.5

91.0

90.5

91.6

93.0

90.5

93.3

90.5

90.0

88.0

(10)

30.8

31.8

29.6

28.6

29.1

28.6

28.4

30.3

28.7

27.1

29.1

29.8

28.0

29.0

29.5

(11)

17.4

11.7

14.2

13.6

13.4

13.6

13.6

13.8

13.6

13.4

13.4

13.5

13.3

13.8

13.1

1Revised2ProvisionalSources: Data derived from CBN Surveys and Federal Office of Statistics(FOS).

TABLE 6:

GROWTH IN MANUFACTURING PRODUCTION(1985 =100)

Sub-Groups

Sugar Confectionery.....

Soft Drinks

Beer & Stout.

Cotton Textiles..

1994

(1)

106.5

148.4

95.2

92.1

1995

(2)

59.4

153.2

103.3

89.6

1996

(3)

57.5

166.2

107.5

102.1

19971

(4)

56.1

157.1

116.7

106.1

19982

(5)

56.5

162.1

119.3

94.5

Percentage Change Between

(1) & (2) (2) & (3) (3) & (4) (4) & (5)

(6) (7) (8) (9)

-44.2 -3.2 -2.4 0.7

3.2 8.5 -5.4 3.2

8.5 4.1 8.6 2.2

-2.7 14.0 3.9 -10.9

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Synthetic Fabrics...

Footwear...

Paints.

Refined Petroleum

Cement..

Roofing Sheet

Vehicle Assembly.

Soap & Detergent.

Radio & TV..

Total

1066.9

58.8

98.4

110.9

95.0

30.8

17.4

152.6

8.9

144.2

799.3

46.6

118.1

117.9

93.0

37.8

11.7

67.6

6.0

136.3

815.9

52.1

122.2

127.6

88.1

29.6

14.2

190.9

5.8

138.0

813.2

49.9

114.0

125.7

91.5

28.6

13.6

206.7

4.5

138.5

708.4

45.6

112.8

119.3

90.5

29.1

13.4

185.3

4.0

133.1

-25.1 2.1 -0.3 -12.9

-20.8 11.8 -4.2 -8.6

20.0 3.5 -6.7 -1.1

6.3 8.2 -1.5 -5.1

-2.1 -5.3 3.9 -1.1

22.7 -21.7 -3.0 1.8

-32.8 21.4 -4.2 -1.5

9.8 13.9 8.3 -10.4

-32.6 -3.3 -22.4 -11.1

-5.5 1.3 0.4 -3.9

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TABLE 7:

GROSS DOMESTIC PRODUCT AT 1984 FCTOR COST AND SHARE OF

MANUFACTURING PRODUCTIVITY (Nm)

Year GDP Manufacturing + % Of

Manufacturing/GDP

Income Per Capi

Manufacturing sub-sect

197019711972197319741975197619771978

197919801981198219831984198519861987198819891990

1991199219931994

5205.16570.77208.310990.718298.320957.026656.331520.334540.1

41947.749632.350456.651570.356709.863006.271368.172128.2

106883.2142678.3222457.6257873.0

320247.3544330.7691608.4891789.8

378.4415.8511.1496.9661.21170.41464.31555.02377.9

3815.64068.46964.27860.75549.44926.25903.55673.95963.26729.56840.27361.4

8046.07657.27341.06974.0

7.26.37.04.53.65.65.54.96.9

9.18.213.815.29.87.88.37.95.64.77.82.8

2.51.41.00.8

4.34.75.85.67.5

13.316.617.727.0

43.446.279.189.363.056.067.064.567.876.577.783.6

91.487.083.479.2

AnnualAverage rate 6.3

Source: CBN Statistical bulletin Vol.5 No.2, 1994.P.C. Egbon p.123 capital goods and technological development in Nigeria, 1990

+ The column is computed by the Author

++ Figures in this column are not measured in millions of naira rather tens and units of naira .

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TABLE 8: INDEX OF PRINCIPAL MINERAL PRODUCTION

(1985 = 100)

Percentage Change Between

Minera l Weights 1994 1995 1996 19971

19982

(2) & (3) (3) & (4) (4) &(5) (5) & (6)(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Petroleum.. 98.90 122.3 125.4 130.3 142.8 135.7 2.5 3.9 9.6 -5.0Gas 0.04 172.1 172.4 190.6 192.3 192.1 0.2 10.6 0.9 -0.1Cassiterite . 0.75 12.7 12.4 8.6 12.8 12.9 -2.4 -30.7 48.8 0.8Columbite . 0.09 25.8 56.2 31.1 46.5 48.4 117.8 -44.7 49.5 4.1

Limestone.. 0.13 16.6 13.8 16.9 17.4 17.8 -16.9 22.5 3.0 2.3

All Minerals 0.09. 1 .8 2.0 10 .2 10.2 10.1 11.1 410.0 0.0 -1.0

1Revised

2Estimates

Sources: Federal Ministry of Solid Mineral Development; Federal Ministry of Petroleum Resources;Nigerian Coal Corporation, Enugu; Nigeria Petroleum Corporation (NNPC) and CBN Surveys.

TABLE 9: PRODUCTION OF PRINCIPAL SOLID MINERALS

(TONNES)

Percentage Change Between

Minera l 1994 1995 1996 19971

19982

(2) & (3) (3) & (4) (4) &(5) (5) & (6)

(1) (2) (3) (4) (5) (6) (7) (8) (9)

Cassiterite .. 208.3 203.0 226.4 208.9 210.4 -2.5 11.5 -7.7 0.7

Columbite .. 17.0 37.0 34.7 30.4 30.9 117.6 -6.2 -12.4 1.6Coal 25,000.0 20,000 .0 25,273 .0 21,448 .2 21,944 .0 -20.0 26.4 -15.1 2.3

Limestone .. 3,239,030. 3,656,598.00 3,331,522.6 3,318,187.8 3,282,760. 712.9 -8.9 -0.4 -1.1Marble 17,035 .1 22,460 .0 23,255 .6 6,463.4 31.8 3.5 71.5 -2.6

Total 3,281,290.4 3,699,298.0 3,380,323 3,346,508.6 3,311,409.4 127 -8.6 -1.0 -1.0

Revised

Provisional

Source: Federal Ministry of Solid Mineral Development.

8/7/2019 Prod Ind A

27/27

93

TABLE 10: ELECTRICITY GENERATION

(Million KWh)

Percentage Change Between

Type 1994 1995 1996 19971

19982

(2) & (3) (3) & (4) (4) &(5) (5) & (6)(1) (2) (3) (4) (5) (6) (7) (8) (9)

NEPA: 15,411 .0 15,793 .7 16,138 .6 16,094.0 15,040.1 2.5 2.2 -0.3 -6.5(i) Hydro 5,562.2 7,335.7 6,152.5 6,127.9 5,715.2 31.9 -16.1 -0.4 -6.7

(ii) Thermal 9,848.8 8,458.0 9,986.1 9,966.1 9,324.9 -14 1 18.1 -0.2 -6.4

PURCHASED:Thermal. 120.0 62.3 72.3 75.1 69.9 -48.1 16.1 3.9 -6.9

Total

1

Revised

2Estimates

Source: National Electric Power Authority (NEPA).