CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

In Nigeria, the small scale industrial sector until a few years ago consisted mainly of household units, which carry out diverse types of industrial activities in the traditional manner.  Most of this units do not employ paid workers.

            Prior to independence, Nigeria had consciously and constantly pursued and economic policy aimed at economic self reliance.  Infact, individual self reliance is typified by such programmes as National Directorate of employment (NDE) by Babangida Administration. The National Directorate of employment is characterized by graduate Assistant projects open apprenticeship programmes among others.  All these programmes are geared towards making people to appreciate the importance of small scale industries in a developing economy.  On the national level, self reliance was shown in banning other materials that can be sourced within.

            The Structural Adjustment Programme (SAP) which among other things aimed at sourcing of our own raw materials for the industries, described by some analysts as a comprehensive package of reforms designed to put the nation’s economy on a part of sustained growth. That net withstanding, the maintenance culture is also part of our attempt at self reliance.  Infact economic self reliance is not only discussed extensively in Nigeria but indeed in all the West African Countries. The call by the economic community of West African States (ECOWAS) to her member state of stop or at least minimize the import of her raw materials to the developed or industrialized nations to minimize the importation of food and to look inward to help themselves by encourages small scale industries