EFFECT OF ECONOMIC RECESSION ON INDUSTRIALIZATION OF OREDO LOCAL GOVERNMENT AREA OF EDO STATE
The reason for this research work is to identify the effects of economic recession on industrialization in Oredo Local Government Area of Edo State. in the late 1970s and 1980s most countries in the world over notice a worldwide oil glut, this situation displayed itself in a pronounced economic recession mostly to countries like Nigeria that operates a mono product economy. The research instrument that was used in the study was the questionnaire. In an utmost bid to salvage the Nigerian economy, the then civilian administration overly declared austerity measures and other successive government that came into administration categorically held firmly to the former measures adopted. These research work findings are; Edo State have been under developed and the industrial base of this locality is poor, due to the shortage of capital to boost any form of economic and industrial development and also its effect has affected to some extent, that they wont run at a loss due to the lack of adequate capital to maintain the industries. The objectives and aims of the study are;
To determine and to find out the areas of industrialization that was, and is currently affected by the recession crisis in Edo State.
To find out the areas of industrialization that is most favored by the economic recession in Edo State.
To determine the degree of increase of decrease in the industrial growth rate in Edo State.
The total population of this study was 140. The following are but a few recommendations suggested to adequately proffer lasting solutions to the present economic condition, and they are as follows; There is need for skilled personnel intelligent and serious minded people should be given scholarship by the state government and other voluntary agencies, people should be encouraged to go to school so as to read advanced courses like accountancy. Government should make concrete provision of social amenities and infrastructures to the various industries in the locality. The effect of economic recession on industrialization in Oredo Local Government Area of Edo State which in turn produces with the positive and negative effects it had on the Nigerian economy.
1.1 BACKGROUND TO THE STUDY
Nigeria is one of the West African Countries and there are thirty six states in Nigeria of which Edo State is one. Industrialization in Nigeria dates back to the origin of men when most towns were alive with the activities of craftsmen, artisans and small scale industrialists. These self employed people worked long hours and their creative energies and amazing talents were indispensable in organizing the productive forces of the economy. These people did not only supply a wide variety of goods and services by means of the apprentices system, they provided vocational training in the jobs for thousand of able bodied Nigerians to ensure that industrialization get boost of a department of commerce and industries was established long time to assist in such economic improvement and development as many will be decided upon, on the department made a substantial contribution towards industrial development in the country.
It launched number of significant development projects such as the pioneer oil mills, textile mills, canning and boat building projects. Since getting independence in 1960, the federal and state government including bodies and individuals have assumed major responsibility and role in stimulating industrial development. As a result many government sponsors industries like Bendel Brewey Limited Company have emerged economic recession, on the other hand is a period of slow down economic growth a rise in unemployment and also is a period of increasing permission.
Recession usually come as a climax of shortages and inflation. According to Samuel (1985) economic indicators under recessionary condition manifested themselves in different ways. The expressionary tendencies during booms gradually stops and aslowdown in business activities and contraction sets in investments that looked profitable, on the expectation of continuously rising prices and output suddenly becomes unprofitable, financial institutions and leaders become more cautious of possible changes in price. The first major worldwide economic recession surfaced during the world war II that ended in 1945. Early 1980s witnessed another worldwide economic recession which occurred partially as a result of oil glut. The situations became unbearable to Nigerians as one of the man suffers, hence in 1982, the civilian administration of Alhaji Shehu Shagari overly declared the austerity measures now plaguing the Nigeria economy. As if the economic recession has come to stay other successive administration in Nigeria have held firmly to the austerity measures./ even the dynamic government of Babangida administration went a step further to impose months economic emergency period. Industrialization is the key to economic development for any country to attain any considerable level of development, since the benefit derived from the various industries cannot be overemphasized it is the pride of a national to develop more industries in order to achieve maximum technology progress. Foreign goods produced by foreign industries can also contribute to economic development. This is necessary because it features growth and development.
1.2 STATEMENT OF THE PROBLEM
The background of the research investigation shows the trends of industrialization in Nigeria as a nation and the effort of the various governments to create an industrialized economy. Currently, there emerge the worldwide economic recession which has numerous effects on the industrial development of Edo State in particular and the entire country. The problem, of this research investigation is to determine the length to which the economic recession has affected industrialization as a vital instrument for growth and development in Oredo Local Government Area of Edo State.
1.3 OBJECTIVE OF THE STUDY
Understanding the problem, the researcher hopes to achieve some basic objectives that will perhaps assist individuals, government and corporate bodies in finding long lasting solutions to the problem posed by the economic recession as far as industrialization is concerned through an intensive investigation. The research objectives are listed below;
1. To determine and to find out the areas of industrialization that was, and is currently affected by the recession crisis in Oredo Local Government Area of Edo State.
2. To discover whether the economic recession prevented prospective industrialization from realizing their dreams.
3. To find out the areas of industrialization that is most favoured by the economic recession in Oredo Local Government Area of Edo State.
4. To determine the degree of increase of decrease in the industrial growth rate in Edo State.
1.4 RESEARCH QUESTIONS
This research piece is out to test the questions “Edo State owes its industrial growth to the effects of industrialization various methods will be employed which include consulting journals, meeting people in that field and workers in the industries location in Oredo Local Government Area of Edo State for interviews. The researcher formulated the following research questions;
1. In what ways is non-availability of capital affects the development of industries?
2. How has improper management and administration led to the collapse of some industries?
3. In what way can non-availability of labour affects the development of industries in Edo State?
4. In what way have poor infrastructural facilities affected the development of industries in Oredo Local Government Area of Edo State?
5. In what ways can loans be obtained by prospective and existing industries from various financial institutions?
1.5 SIGNIFICANCE OF THE STUDY
The study will be of great value to the development of new industries in Oredo Local Government Area of Edo State. It will contribute immensely to the exploration of the effects that have led to the backwardness of industries in the area of study and suggested possible solutions to those effects identified and it will be of significant value to the three tiers of government which are federal, state and local in the allocation of resources so as to cater
for potential and aspiring industries that are on the rise.
Furthermore, it will be of significance to manager existing and potential entrepreneurs and directors of subsequent industries in Edo State. knowledge about its significant finance will equip incoming and aspiring investors who tends to invest in the industrial sector so as to ensure efficiency and maximum prosperity towards development.
1.6 SCOPE OF THE STUDY
The concept industrialization is wide and broad; therefore the researcher in an attempt to carry out an efficient and effective investigation restricted his study to the manufacturing industries. In effect, the study covered the product oriented industries. The sample covered industries in Oredo Local Government Area of Edo State including the following production sectors;
1. Textile industry
2. Wood industry
3. Chemical industry
4. Brewery industry
5. Bakery industry
1.8 DEFINITION OF TERMS
Oil glut: Oil glut simply refers to a situation where there is excessive supply of oil by the various oil producing in a countries.
Economic recession: economic recession is a period of well lightening a period that is characterized by drastic cut down on aggregate demand for goods and services.
Infrastructural facilities: These are materials needed by new and existing industry to have effective and smooth running of the firm in order to ensure maximum profit and the firms actualizing it’s objectives.
Raw materials: It simple means the manufacture outputs (goods and services).