Manifacturing Sector

Question 1

Define manufacturing sector

Answer 1

The manufacturing sector involves the conversion of raw materials into finished goods or intermediate goods

Question 2

Importance of manufacturing sector

Answer 2

• creation of employment
• boosting agriculture
• diversification of economy
• increase in foreign exchange
• opportunity for local industry to be able to acquire new skills

Question 3

Strategies of the manufacturing/ industrial sector in Nigeria

Answer 3

• import substitute strategy
• export substitute strategy
• balance development strategy
• local resource based strategy

Question 4

Some reforms in the industrial sector

Answer 4

• national economic reconstruction fund 1989
• people’s bank of Nigeria 1989
• Nigeria industrial bank
• small and medium scale guarantee scheme (2010) with over 200 billion naira
• micro ,small and medium enterprises development fund with 220 billion naira

Question 5

Problems attached to a manufacturing sector

Answer 5

• Lack of credit facilities
• infrastructural activities
• low industrial capacity utilization
• over dependence on imports
• export of primary activities
• unfavorable terms of trade

Question 6

Solutions to the problem attached to the Manufacturing sector

Answer 6

• solution of basic infrastructure
• Nearness of raw materials to market
• Availability of raw materials
• political stability
• Access to credit facilities