CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

It is certain that Nigeria is endowed with a lot of natural resources. These resources to mention but a few are skel, crude oil, natural gas, Iron ore, palm oil, ground nut yam, cassava etc. these resources found the major export earning before the era of independence an generate 80% of our then total revenue the precolorual era could be regarded as era of substance economy. Each community then was noted for one particular raft or the other some families were known as either artists or blacksmiths on their craft as their source of livelihood ad they were operating as subsistence level fermi (1984)

As a result of increased population and increased demand for these service, there were efforts to increase specialization an efficiency by these craftsmen it worth knowing that there was little or capital intensive Because of this lack of capital intensive, production possibilities curing the precolonial, the federal government did not free movement towards the upliftment of the

industries. The economy under the precolonial, the federal government. What merely existed was the cowry monetary system. Hence, the luck for efficient and effective monesed economy did not exert a concrete influence on economic activities. To foster the industry, there was the introduction of banking system which facilitated granting for credit facilitates e.g. loan and advance (Nwosu 1984)

In post independence economy, the government made no remarkable impact on small-scale industries establishment. The federal government in order to protect the small-scale industries (SSTS) In the country introduces the structural adjustment programme (SAP), which was design to exhibit reliance. It allows the SSTS to g row without unhealthy competition with the foreign goods, as it discouraged the importation of raw material that can be preceded locally.