67

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 and
services 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 the
relationship 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. It
will 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 to
compete with other nations is very vital for their survival as a nation. Since their survival depends on
the 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 has
generated tremendous interest among economic scholars for decades. A common thread running
through 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 the
major 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 germane

given 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 the
effect 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 to
trigger 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 is
reflected, 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 strategies
intended 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 and
promoted 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 the
serious unemployment and under employment problem of agriculture. Industry is required to
satisfy the rapidly growing demand for manufactured goods which developing nations cannot
import 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 agriculture
and 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 the
Nigerian 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 moved
from 50 percent in 1970 to 38.8 percent in 1991 and by 1995 this has declined further to only 32
percent, (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 was
shifted 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 was
depressed by the massive urban boom and movement of rural workforce to cities (Rural urban
migration ).
On the other hand, emphasis on industralization as a means of diversifying production patterns
and 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 industrial
complexes in the 70s and 80s. Consequently, the manufacturing sub-sector accounted for about 4
per 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 and
economic 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 the
real 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 economists
define 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 and
view 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 such
quantitative 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 ;K 1 , 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 capacity
of a national economy, whose initial economic condition has been more or less static for a long
time, 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 development
has 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. Economic
development viewed in this way has to do with growth of per capita GNP which will also
determine 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 made
available for consumption and investment by the people.

According to Tadaro, development is an economic phenomenon, in which rapid gains in

overall 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 wide
distribution 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 the
distribution 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 system
toward 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, and
c. Service sector

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 the serious
unemployment and under employment problem of agriculture. Industry is required to satisfy the
rapidly growing demand for manufactured goods which developing nations cannot import because of
balance 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. Such
rapid 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 the
developing or poor nations are agricultural and not industrialized. Industry is wanted because it
generates 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 on
rapid 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 industrial
production.

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 be
defined 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, quantity
and quality of manufactured goods and services produced by different organisations, services rendered
by 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 less
profit means that productivity is low.

In contemporary economic theory, production is formally defined as the process of creating

economic 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 of
process 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 and
manufacturing 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 from
the 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 persons
engaged 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 from
the typical Keynesian concern with fluctuations in aggregate demand. He on his part, assumes full
employment, 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 place
between 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 this
capital 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, we
can write.

L(t ) =L 0ent ……………………….. 5

‘n’ represents the Harrod natural rate of growth. Labour in (4) stands for total employment while
labour 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 and

t as technical progress.

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

∆Y = V∆K + W∆L + ∆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, the
growth 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 Labour
is 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 to
increase 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 Nigeria’s 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 percent
in 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 than
in 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 by
7.6 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 in
total 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 role
in the economy.

Table 2 shows that there was a sharp decline in oil sector GDP. The major reason for this was the
drastic 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 as
wholesale 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 in
1997. The major reason for this performance was attributed to favourable weather conditions. The
performance 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 record
shows that all the components of industrial output – manufacturing, minining, and electricity
contributed 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 be
lower than both the targets for the fiscal year and the annual average for the 1998 – 2000
Rolling 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 rate
of 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 Nigerian
economy.

IV.1 AGRICULTURAL PRODUCTION

On attaining independence in 1960, the agricultural sector maintained its dominant
position as the major foreign exchange earner. Infact, the sector was the mainstay of the
Nigerian 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 was
reduced 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 on
imports, 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 of
rural 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 food
created balance of payment difficulties.

The major propelling forces for economic growth are therefore the export-oriented
section 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 the
contrary, 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 for
the 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 for
imports of finished products to be financed. The sector will provide enough revenue to
government. Furthermore, the original growth incentives created by the export of agricultural
and forestry products are sustained. The sector plays an increasingly greater role as driving
force of economic expansion.

IV.2 SYNTHESIS OF AGRICULTURAL OUTLOOK FROM 1994 – 1998

Agriculture is still the most important sector of Nigeria’s economy. Agriculture grew at
an 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. By
1976, growth in the sector had slowed to about one per cent. Between 1977– 1979 agriculture
had 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 the
respective ratios of 39.4 and 39.0 percent in 1997 and 1996. The growth in agricultural output
in 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 4.1
percent 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 (CBN
1999), showed that the moderate increase in agricultural production during 1998 was attributed
mainly to favourable weather conditions (enough rainfall), more investment to the sector by
government, 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 improve
the 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 largely
sustained 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 in

Nigeria. 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 the
ability 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 on

agricultural 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 of
commitment of official);
(v) Inadequate or lack of effective supporting services such as farm credit to genuine
farmers, 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 water
management, crop management, energy management problem, inadequate farming
systems, etc. Our land tenure system inhibits investment, expansion, effective utilization
and increased food production. There is need to allow small farmers to have more access
to land in order to boast their output;
(viii) The problem posed by increasing labour shortage in the rural areas in consequence of
rural 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 technology
for rapid development of the agricultural sector.
(xii) Inappropriate policies by government. There is need for sustainable policy towards
favourable 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 nation’s desire. The achievement is a
function 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 in
manufacturing 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 to
boost productivity in manufacturing is not strange in Nigeria since independence. Table 4 and 6
provides 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 an
average 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 oil
boom 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 a
decline 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 4.7
per 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 the
industrial 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 at
133.1 (1985=100), fell by 3.9 per cent, in contrast to growth rates of 0.4 and 1.3 per cent recorded in
1997 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 from
low purchasing power. Low demand for local manufactures, resulting partly from dumping of
imported 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 for
goods 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 manufacturing
establishments 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 in
1998. 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 30.2
percent 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 to
high 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 special
attention. 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 continuous
decline. The contributions of the manufacturing sub-sector to the GDP in 1990, 1991, 1992, 1993 and
1994 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 N43.4
and 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 the
seemingly increase from 1981 to 1994 stems from changes or increase in nominal prices since the
measurement is not in constant naira.

The indication is that the manufacturing sub-sector cannot sustain the economy given income
per 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 the
economy

V.2 CONSTRAINTS IN THE MANUFACTURING SUB-SECTOR

To enable the manufacturing sector play a significant role in the economy, there must exist a
sound 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 the
totality 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 period
1962-85 (four development periods) the transport sector absorbed a high proposition of the
country’s 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 fourth
development plans respectively. Yet the transport sub-sector offers little to assist manufacturing
vis-a–vis industrialization as the overall transport network continues to dwindle

The manufacturing sub-sector cannot survive without adequate electricity. Electricity

provides 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 frequent
power failures, which do not only reduce output of goods and services, but also cause damage
to 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 the
result 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 plant
whose costs is mostly outside the reach of small and medium scale businesses. These small and
medium 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 this

commodity is scarce in Nigeria. Safe water supply must be available at all times both for human
consumption 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 capital
goods and raw materials in the face of ever-expensive foreign exchange. This has adversely
affected 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 raw
materials 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 for
raw materials import. In 1995, importation of capital goods and raw materials was N438,590.8
million 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
 79

large industries. There is need for the government to pay more attention to the small-scale
industries, 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 of
Nigeria 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). Output
reduction 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 per
cent, 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 under
consideration as a result of the use of obsolete equipment and machinery, prolonged shortage of fuel
required 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. Nigeria’s crude oil
production, including condensates, was estimated at 772.99 million barrels, indicating a decline of 5.0
per 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 Nigeria’s compliance with OPEC’S directives on cut on
production, 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, and
other petroleum products to our industries. However, in 1998, the production of natural gas declined by
0.1 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 oil
production during the same period.

V.6 SOLID MINERAL

According to CBN report (1998:107), at 3.311,409.4 tonnes, aggregate output of principal solid
minerals 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 of
limestone and marble to 3,282,760.7 and 6,463.4 tonnes, respectively. The production of coal,
 80

columbite and cassiterite, however, rose by 2.3, 1.6 and 0.7 per cent respectively, over the levels in the
proceding 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 fuel
and 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 marginal
decline 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 power
failures, 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 and
underdevelopment 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 of
the 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 function
of the people working in the country

2. Government should ensure a conducive enabling environment to private sector initiative

for greater investment and productivity

3. Government should pursue a favourable policy framework and provides necessary

infrastructural 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, extension
service officers, capital, including farm infrastructure, transport services, eradicating the
 81

problem of land ownership through genuine land tenure system, provision of adequate
technology, 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 the
constant 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 health
facilities, which could substantially improve the workers productivity, and

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

CONCLUSIONS

The enhancement of productivity of the Nigerian economy is an urgent task for any progressive
administration. 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 incentive
and encourages productivity.

This paper is of the view that there is a strong relationship between productivity, economic
growth 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 the
period of 1970 – 1994. The growth in agricultural output in recent years is also low. The sector
 82

however is contributing more than the manufacturing sub-sector to the economy. This study found that
both sectors are the leading sectors in every economy and are essential for high rates of present and
future growth.
 83

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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 presented
at the concluding seminar of the senior Executive course, No.6 National Institute for
Policy 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 Fourth
Dimension 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 International

College 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 in
Nigeria Manufacturibg Sector, Draft final Report Presented to the Development Centre
IECD, Paris.
 84

Taylor, L.J. (1981) “IS – LM in the Tropics: Diagramme of the New Structuralists
macroeconomique, 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.
 85

TABLE 1: GROSS DOMESTIC PRODUCT AT 1984 CONSTANT FACTOR COST

(PERCENT OF TOTAL)

Sector 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991

Agriculture 34.7 35.8 37.7 37.8 40.3 42.5 41.5 41.5 40.6 39.0 39.6
including forestry

Manufacturing 9.9 11.2 8.4 7.8 8.6 8.0 8.4 8.7 8.2 8.2 8.5

Crude Petroleum and 14.0 12.5 12.8 15.2 15.1 13.8 12.5 12.3 13.2 12.9 13.4
gas
4.7 3.8 3.5 3.0 1.9 1.8 2.0 2.1 2.0 1.9 1.9
Building &
Construction 2.6 2.6 2.8 3.0 2.7 2.7 2.7 2.5 2.4 2.3 2.3

Housing 0.7 0.7 0.8 0.8 0.7 0.5 0.6 0.5 0.5 0.6 0.5

Utilities.

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

Total (N billion) 70.4 70.2 66.4 63.0 68.9 71.1 70.7 77.8 83.5 90.3 94.5

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

 86

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 1 1998 2 1994 1995 1996 1997 1 1998 2 1995
1996 1997 1998 2
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
(12) (13) (14)

1. Agriculture (Crop
production) 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 0.00
3.23 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 0.29
8. 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 0.08
0.87 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 4.17
3.90 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
 87

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
1
Revised
2
National 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 Growth

rate

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).

 88

TABLE 4: INDEX OF INDUSTIAL PRODUCTION

Year Manufacturing Mining Electricity Total

Consumption Sectors

Weight………………… 31.90 65.60 2.50 100.00

1970…………………… 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 89.4 115.6
1982…………………… 132.8 86.2 94.9 122.9
1983…………………… 94.8 82.5 97.1 96.4
1984…………………… 83.4 93.0 87.1 91.6
1985…………………… 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…………….. 137.2 127.9 152.5 131.3
2nd Quarter……………. 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
1997 2
1st Quarter……………. 129.8 127.7 140.6 128.7
2nd Quarter……………. 128.3 132.7 144.4 131.6

1. Revised2. Estimates
Sources: (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

Sugar Soft Beer & Cotton Synthetic Foot Refined Roofing Vehicle Soap &
Year/Quarter Confectionery Drinks Stout Textiles Fabrics Wear Paints Petroleum Cement Sheets Assembly Deterg
 89

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
1994………... 106.5 148.4 95.2 92.1 1,066.9 59.8 98.4 110.9 95.0 30.8 17.4 152.0
1995………... 59.4 153.2 103.3 89.6 799.3 46.6 118.1 117.9 93.0 31.8 11.7 167.6
1996.……….. 57.5 166.2 107.5 102.1 815.9 52.1 122.2 126.4 88.1 29.6 14.2 190.9
1997 1 ….……. 56.1 157.1 116.7 106.1 769.2 49.9 114.0 120.6 91.5 28.6 13.6 206.7
1998 2 ….……. 56.5 162.1 119.3 94.5 706.0 45.6 112.8 119.3 92.3 29.1 13.4 185.3
1
1997 ….……. 56.1 157.1 116.7 106.1 769.2 49.9 114.0 120.6 91.5 28.6 13.6 206.7
1 st Quarter….. 57.8 157.3 113.8 106.5 727.7 53.5 115.9 118.4 91.0 28.4 13.6 228.8
nd
2 Quarter…. 55.8 144.7 115.8 108.4 865.7 50.2 115.0 114.4 90.5 30.3 13.8 197.1
3 rd Quarter…. 56.4 158.8 118.3 103.8 736.2 48.7 113.5 117.4 91.6 28.7 13.6 222.5
th
4 Quarter…. 54.5 167.5 119.0 105.7 747.3 47.0 111.5 132.2 93.0 27.1 13.4 178.4
1998 2 ………. 56.5 162.1 119.3 94.5 708.4 45.6 112.8 119.3 90.5 29.1 13.4 185.3
st
1 Quarter….. 57.3 161.0 118.4 92.1 729.9 46.0 112.1 124.6 93.3 29.8 13.5 177.8
2 nd Quarter…. 57.1 162.0 119.2 91.8 687.6 44.0 111.5 120.6 90.5 28.0 13.3 188.6
rd
3 Quarter…. 56.3 162.3 119.7 95.2 711.0 46.4 113.8 119.8 90.0 29.0 13.8 184.4
4 th Quarter…. 55.1 163.2 119.9 99.0 705.0 45.9 114.1 112.2 88.0 29.5 13.1 190.2

1
Revised
2
Provisional
Sources: Data derived from CBN Surveys and Federal Office of Statistics(FOS).

TABLE 6:

GROWTH IN MANUFACTURING PRODUCTION

(1985 =100)

Percentage Change Between

1 2
Sub-Groups 1994 1995 1996 1997 1998 (1) & (2) (2) & (3) (3) & (4) (4) & (5)
(1) (2) (3) (4) (5) (6) (7) (8) (9)

Sugar Confectionery………..... 106.5 59.4 57.5 56.1 56.5 -44.2 -3.2 -2.4 0.7
Soft Drinks…………………… 148.4 153.2 166.2 157.1 162.1 3.2 8.5 -5.4 3.2
Beer & Stout…………………. 95.2 103.3 107.5 116.7 119.3 8.5 4.1 8.6 2.2
Cotton Textiles……………….. 92.1 89.6 102.1 106.1 94.5 -2.7 14.0 3.9 -10.9
 90

Synthetic Fabrics……………... 1066.9 799.3 815.9 813.2 708.4 -25.1 2.1 -0.3 -12.9
Footwear……………………... 58.8 46.6 52.1 49.9 45.6 -20.8 11.8 -4.2 -8.6
Paints…………………………. 98.4 118.1 122.2 114.0 112.8 20.0 3.5 -6.7 -1.1
Refined Petroleum…………… 110.9 117.9 127.6 125.7 119.3 6.3 8.2 -1.5 -5.1
Cement……………………….. 95.0 93.0 88.1 91.5 90.5 -2.1 -5.3 3.9 -1.1
Roofing Sheet………………… 30.8 37.8 29.6 28.6 29.1 22.7 -21.7 -3.0 1.8
Vehicle Assembly……………. 17.4 11.7 14.2 13.6 13.4 -32.8 21.4 -4.2 -1.5
Soap & Detergent……………. 152.6 67.6 190.9 206.7 185.3 9.8 13.9 8.3 -10.4
Radio & TV………………….. 8.9 6.0 5.8 4.5 4.0 -32.6 -3.3 -22.4 -11.1
Total 144.2 136.3 138.0 138.5 133.1 -5.5 1.3 0.4 -3.9
 91

TABLE 7:
GROSS DOMESTIC PRODUCT AT 1984 FCTOR COST AND SHARE OF
MANUFACTURING PRODUCTIVITY (N’m)

Year GDP Manufacturing + % Of Income Per Capita ++

Manufacturing/GDP Manufacturing sub-sector

1970 5205.1 378.4 7.2 4.3

1971 6570.7 415.8 6.3 4.7
1972 7208.3 511.1 7.0 5.8
1973 10990.7 496.9 4.5 5.6
1974 18298.3 661.2 3.6 7.5
1975 20957.0 1170.4 5.6 13.3
1976 26656.3 1464.3 5.5 16.6
1977 31520.3 1555.0 4.9 17.7
1978 34540.1 2377.9 6.9 27.0
1979 41947.7 3815.6 9.1 43.4
1980 49632.3 4068.4 8.2 46.2
1981 50456.6 6964.2 13.8 79.1
1982 51570.3 7860.7 15.2 89.3
1983 56709.8 5549.4 9.8 63.0
1984 63006.2 4926.2 7.8 56.0
1985 71368.1 5903.5 8.3 67.0
1986 72128.2 5673.9 7.9 64.5
1987 106883.2 5963.2 5.6 67.8
1988 142678.3 6729.5 4.7 76.5
1989 222457.6 6840.2 7.8 77.7
1990 257873.0 7361.4 2.8 83.6
1991 320247.3 8046.0 2.5 91.4
1992 544330.7 7657.2 1.4 87.0
1993 691608.4 7341.0 1.0 83.4
1994 891789.8 6974.0 0.8 79.2
Annual
Average 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 .
 92

TABLE 8: INDEX OF PRINCIPAL MINERAL PRODUCTION

(1985 = 100)
Percentage Change Between

Mineral Weights 1994 1995 1996 1997 1 1998 2 (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 -5.0
Gas ………………… 0.04 172.1 172.4 190.6 192.3 192.1 0.2 10.6 0.9 -0.1
Cassiterite …………. 0.75 12.7 12.4 8.6 12.8 12.9 -2.4 -30.7 48.8 0.8
Columbite …………. 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
1
Revised
2
Estimates

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

Mineral 1994 1995 1996 1997 1 1998 2 (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 1.6
Coal ……………………… 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 -1.1
Marble …………………… 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.

 93

TABLE 10: ELECTRICITY GENERATION

(Million KWh)

Percentage Change Between

Type 1994 1995 1996 1997 1 1998 2 (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
2
Estimates
Source: National Electric Power Authority (NEPA).