CHAPTER ONEINTRODUCTION1.1 BACKGROUND OF THE STUDYMost developing nations define industrialization as a centralobjective of their economic policy they see; industrialization goeswith agricultural progress as an integral part of growth andstructural change. Some economist and analysts are of the viewthat industrialization plays a major role in the economic growthand development of any nation.Thus in this research work, effort is made to assess theimpact of industrialization on economic growth of Nigeria. Beforecolonial rule in Nigeria, there were numerous economic activitiesundertaken by Nigerians. Nigerians were among the most activeand industrious group of people in Africa. The economic activitieswere based mostly on primary production especially onagriculture. Such activities were engaged in, included farming,hunting and quarrying. The coming of the white men to Nigeriarecorded more changes in life style of Nigerians. The economywas changed from its agricultural based to a market based forimported manufactured product.2
The colonial masters at the same time took the Nigerianeconomy as a base for the supply of resources both mineral andagricultural raw materials for industries in their own country.The worst aspect of it was that they exploited these resources ata cheap price, but when their product was brought into Nigeria,the prices were placed so high to exploit the nation.Furthermore, the colonial lords at no times endeavoured toindustrialize Nigeria, and Nigerians were not motivated to involvethemselves in industrial activities. All these contributed toNigeria being both technologically backward and industrious.The attainment of political independence by Nigeria in 1960 madeit possible for the 1st national development plan in Nigeria in1962. The main aim of this plan was for industrialization.Industrialization in Nigeria was aimed at the achievement ofimport substitution and even export promotion.Industrial development and economic growth are necessaryin any developing country. In an economy where there isavailability of industries, the majority of unemployed people willengaged themselves in productive activities. If industrialdevelopment is well encouraged it will be of great help to the3
developing economy and it will also go a long way in enhancingeconomic growth.Industrialization is the process through which the primary basedeconomy becomes industrialized.According to Ojo (1987:256) industrialization could be seenas the process by which the industrial sector of such a country orregion increases its share in gross domestic product (GDP),employment, poverty alleviation efforts, investment and so on.From the works of Shaw and Emer(2000:13) industrialization isthe process where manufacturing becomes increasinglyimportant in the economic structure of the society.According to Holis, Bacheney (1999:624) said thatindustrialization is the main hope of most countries trying toincrease their level of income. Industrialization in Nigeria has theidea of transforming the peasant or idle workers of Nigeria intofull time or part time industrial workers and on the other hand itwill transform the structure of Nigerian economy. The standard ofliving of the people in the economy will be improved andeconomic growth is gingered.