PROJECT TOPIC: PRODUCTIVITY AND ECONOMIC GROWTH IN NIGERIA A CASE STUDY OF MANAFUCTURING SECTOR
This is an investigation into productivity and Economic growth in Nigeria, the manufacturing sector as a case study. Available record now shows that low productivity is a global problem specifically, in Nigeria. Having said that, prominent factors responsible for low level of productivity in Nigeria economy was, highlighted; High level of illiteracy, poverty and corruption, low living standard etc, are part of factors reducing output in Nigeria. The researcher however, employed econometrics method to enable him ascertain the validity of the work. He therefore, found that low saving, low investment, political instability and subsistence farming are responsible for low gross domestic product (GDP) in Nigeria. The research recommends that effort should be made to increase agricultural productivity; that there should be political stability; rapid investment in research and development; etc. Finally, this work is in five chapters arranged as shown in the table of contents.
1.1 BACKGROUND OF THE STUDY
The economic world we are living in is competitive and therefore nations must have to work hard and produce goods and services so that they can compete favorably with other nations. The ability to compete with other nations is very vital for their survival as a nation. Since their survival depends on their ability to provide basic goods and services to the people, there is need to increase productivity in all sectors of economy.
That notwithstanding, productivity according to Robert et al (1988), productivity is the amount of output produced per unit of output. Because labour is the most important input, the most popular measure of productivity is labour productivity or output per hour of labour. According to the author, when economic talk about productivity, they usually mean labour productivity. Furthermore, Udabah S.I et al (1998) highlights that every developed country is very conscious of the relationship between her level of productivity and her ability to compete with other developed countries in the world market for industrial products. Again, it is obvious that in Nigeria, as in many other developing nations, low productivity contributed significantly to our economic problems. In fact, one of the major characteristics of developing nation is low productivity which could lead to other problems like those of low income, low savings, low investment and unemployment (ibib:). Consequently it was observed by Robert. E that productivity is that unit of output low productivity in a particular country further shows itself not only in the high prices of industrial products in the domestic market but also in the lack of competitiveness in the international market.
As a result of that, nations should be more productive in order to earn enough foreign exchange to pay its imports, hence there is almost continues comparison in levels of productivity among the worlds great industrial nations. This is for the simple reason that productivity determines the living standards of the people and the degree of economic growth and development.
Economic growth depends on both the growth of resources and technological progress. Advance in technology allow resources to be more productive. On the other hand if the quantity of resources is growing and each resources is more productive, then output grows even faster than the quantity of resources.
Economic growth, then is the sum of the growth rate of total factor productivity and the growth rate of resources economic growth = growth rate of total factor productivity (TFP) + growth rate of resources. The amount that output grows because the labour force is growing depends on how much labour contributes to the production of output.
Additionally, Jhingan (2005), maintain that in most developing nation, like Nigeria, the rate of production is low. To some extent low production is an aspect of the vicious cycle pf poverty in which many developing nation are trapped. Based on the writer, poor standard of living, bad health, lack of education, poor housing, poor transportation to and from work, bad and unfavourable working condition etc, reduce the workers productivity, and low productivity on turn reduces the capacity of the society to improve living standards.
As a result, the psychological effect of poor living standard on the mind of workers may be even more serious. In his view, motivation to work is low, particularly if the workers feel cheated and exploited, and the will to work is correspondingly reduced. Furthermore, when motivation and job satisfaction is low, productivity will also be low.
In the same manner, the concept of production function systematically relating outputs for a given technology is often used to describe the way in which societies go about providing for their material needs. However, Udebah (1998) pointed out that technical, engineering concept of a production functions needs to be supplemented by a broader conceptualization that includes among its, “other” inputs- managerial flexibilities.
Throughout the developing nations, levels of labour productivity (output per worker) are extremely low compared with those in developing countries.
1.2 STATEMENT OF THE PROBLEM
An argument has been put forward that productivity is a (disgracing) challenge to economic growth and development. Based on fact, Eboh (1998) maintain that “Nigeria is among the 20 poorest countries in the world despite its widely acknowledged huge economic potentials”. It has been evident that the widespread of poverty in Nigeria today remains the major challenge to Nigeria’s development efforts.
Prior to this, there is low worker productivity in Nigeria. By worker of productivity I mean the amount of work of acceptable quality provided by an individual or group of individuals in a given time period. Having said that, the low level of human capital in Nigeria is quite developing.
That is the productive skills and degree of knowledge possessed by individual worker, obviously, labour is a productive resources.
However, not all kinds of labour yield are the same volume of output. Generally speaking the lack of their skills also is often tied to lower level of education. Additionally, it is important to know that human capacity does not only includes study skills and knowledge but also includes good health. Again, lack of human resources development is an essential ingredient militating against development in less developed countries.
Such underdeveloped countries lack people possessing critical skill and knowledge required for all round growth and development of the economy, they’re by lowering the productivity of the country’s output.
PROJECT TOPIC: PRODUCTIVITY AND ECONOMIC GROWTH IN NIGERIA A CASE STUDY OF MANAFUCTURING SECTOR
More so, the most widespread obstacle to development manifest in the developing countries is capital formation. This is as a result of the vicious circle of poverty. In less developed countries (LDC’s), the masses are poverty ridden. Hence, they use outdated capital equipment and methods of production. They practice subsistence farming, lack mobility and have little connection with the market sector of the economy.
These ugly development, however decrease Nigeria’s productivity. Therefore, the productivity of the LDCs is marginally low. Low productivity leads to low rate of capital/savings as well as low demand for goods and services.
1.3 RESEARCH QUESTION
- What are the factors militating against productivity in Nigerian economy?
- What are the effects of low productivity in the economic growth and development of the Nigerian economy?
- How does poverty contribute to low productivity in Nigeria’s economic development?
1.4 OBJECTIVES OF THE STUDY
The primary objectives of this research work are:
- To examine the causes of low level of productivity and economic growth in Nigeria economy.
- To know whether there is a relationship between productivity and economic development in Nigeria economy.
- To make appropriate recommendations that would help in solving the problem.
1.5 SIGNIFICANCE OF THE STUDY
The justification of research is its value and contributions to already existing knowledge and the solution the research renders for ameliorating the practical problems of concern Obasi (1999). From the above quotation, this research is however, structured:
To afford the opportunity for the government at all levels and nongovernmental organization to further re-examine other factors that brings about poor productivity (GDP) in Nigerians economic activities.
To enable the government formulate its policies and procedures and thus come up with the best strategies that can pave way for better productivity and economic development in Nigeria.
Finally, is to create further inquiring into the nation of Nigeria productivity transition and again, series as a source of information for social science research.
1.6 RESEARCH HYPOTHESIS
By hypothesis, we mean a statement, which guides an investigator by providing a tentative solution to the research problem (Iyiogwe and Awoke 2005).
HO: productivity does not have any effect on the economic growth and development of Nigerian economy.
Hi: Productivity has effect on the economic growth and development of Nigeria economy.
1.7 SCOPE OF THE STUDY
This research was conducted on productivity and economic growth in Nigeria. To narrow down the research study, manufacturing industry in Nigeria serves as a case study from (1993 – 2003).
1.8 LIMITATION OF THE STUDY
The limitation of a study refers to constraints, factors or problems, that in one way or the other, affect adversely the quality of the research in terms of say validity of data collection instrument. Hence the limitation include:
Inadequate information/Data Resources:
Lack of co-operations from the private and public organizations was a serious constraint to this study. The scarcity of library resource and the likes however, posed a serious limitation to this work.
Obasi S.I (1999), Research Methodology in political Science, Enugu, Academic publishing company.
Jhingan M.L (2005), The Economics of Development and Planning B – 5 Astinsh Complexes, Vrinda Publication (p) Ltd.
Iyiogwe Z.O and Awoke M.U, the Research Methodology A. practical Approach to project Report writing for Nigeria. Universities, Abakalili, Folsun technologies, Nigeria Publisher
Udabah S.I et al (1998) Esut Journal of Economic Stupendous on Productivity and Economic Development in Nigeria (1992 – 1996) Vol. 1. No.2.
David Begg et al (1988) professor of Economic Birkback College University of London. Economics fourth Edition. L. Greenberg, A Practical Guide to productivity measurement. Washington D.C. Bureau of National Affairs, 1973.
- L. O. Management Series: No.1 Technical meeting on productivity and Employment in public works in African countries, Lagos, Dec. 1963 ILO: Geneva.
I.L.o Meeting of expert is on productivity in Manufacturing Industries. Geneva. Dec. 1952 Conclusion. Tadaro M.P. Economic Development on the third world, New York. London.