A history of industrial development in the Kaduna state of Nigeria

Loading...
Thumbnail Image
Date
2016
Journal Title
Journal ISSN
Volume Title
Publisher
University of Zululand
Abstract
The study examines the historical process that laid the solid foundation for the establishment of industries in Kaduna State. The study argues and demonstrates that Kaduna possesses large markets and cheap labour occasioned by the incessant migration to the town at the early period of its establishment. Availability of raw material and its strategic location with regard to industrialization at both federal and state level led not only the establishment of industries but to the proliferation of large, small and medium industries in the state. The study also establishes that infrastructure such as adequate electricity, a good road network, and a reliable water supply have played a critical role in the survival of such industries. It is shown in the research that the industries enjoyed prosperity and development for nearly two- and-a-half decades after 1954. Industrial decline began in 1976 with the nationalization and indigenization of the industrial sector of Nigeria. By the late 1980s a number of industries had collapsed as a result of the Structural Adjustment Programme (SAP) which gave room for second tie foreign exchange market. This resulted to a substantial devaluation of the naira, the abolition of import licences, changes to import duties intended to reduce the protection of domestic industries and the import-dependence of manufacturing, the abolition of export duties, deflationary management policies, deregulation of the banks, and a programme of privatization for some parastatals. Production and use of locally produced basic intermediate inputs by local industries were discouraged. The profitability of local production compared to imports fell significantly because of the substantial depreciation of the exchange rate of the naira against major international currencies. The study also establishes that other factors had contributed immensely on the decline and eventual collapse of industries in Kaduna state, import of foreign goods and materials, lack of proper control of borders, and the negligent attitude of politicians with the helm of the country’s affairs in their hands, production of inferior goods, corruption, and unfavourable and multiple taxation, among other things. The study also establishes that the collapse of industries in Kaduna state has created a wide economic gap which may take a long time to be filled. The effects include widespread unemployment, with hundreds of thousands of workers losing their jobs, particularly in the manufacturing industries such as textiles and food processing; widespread insecurity and interethnic religious crises in virtually all the nooks and crannies of Kaduna state. In fact the current security challenges that the country faces have a direct connection with the proliferation of unemployed youths. Poverty and popular hostility are increasing, which has created a huge problem the state which is finding them very difficult to contain. Finally, the study offers suggestions for the way forward. The challenges facing the power sector (shortages) must be squarely addressed, especially in the areas of energy generation, transmission, and distribution; corruption; unfavourable policies and multiple-taxation. When these are addressed, Kaduna State and Nigeria in general can be reindustrialized since they have both the human and mineral resources for such enterprise.
Description
A thesis submitted to the Faculty of Arts in fulfillment of the requirements for the Degree of Doctor of Philosophy in the Department of History at the University of Zululand 2016
Keywords
industrial development --Kaduna State --Nigeria
Citation
Collections