A SPATIAL ANALYSIS OF INDUSTRIAL GROWTH AND DECLINE IN KANO METROPOLIS, NIGERIA
A SPATIAL ANALYSIS OF INDUSTRIAL GROWTH AND DECLINE IN KANO METROPOLIS, NIGERIA
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Date
2015-04
Authors
LIMAN, MUHAMMAD,
ABUBAKAR.
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Abstract
Nigeria‟s poor industrial performance as compared to some developing countries‟ and the eventual closure of industries by the end of the 1970s, especially in Kano, remains the central problem addressed in this work. The aim of the study is to determine the factors that affect the nature and pattern of industrial growth and decline in Kano metropolis, using the Path Dependence theory. The objectives are to a) examine the growth of manufacturing industries in Kano metropolis by types, b) examine the effects of macroeconomic policies, operating in the country, on industrial performance in Kano metropolis, c) determine the pattern of collapse and survival of manufacturing industries in Kano metropolis, d) examine the factors underlying the observed pattern of collapse and survival of manufacturing industries in the study area, and e) assess measures industries in the study area are taking to stay in business. The study is a basic research rooted in the positivist approach employing the survey method. The documented data used for this study is made up of 381 industries while the stratified random sampling method was used in collecting the survey data with a sample size of 25. General descriptive statistics was used to analyse the data while ANOM was used to test hypotheses I and II and the three-way ANOVA was used to test hypothesis III. The findings of the study show that industrial development in Kano metropolis is poor in industrial mix. Although it is made of 20 out of the 24 ISIC Revision 4 divisions spread in 59 out of 121 industrial classes it is not as comprehensive in coverage as it may at first appear to be and only boasts of change in overall numbers of industries. Although the industries mainly depend on local sources of raw materials only 12% have added new product lines and more than 75% producing mainly for internal consumption. The ownership structure is more foreign (45.4%) than Nigerian (33.9%) and more of individual (79.3%) than joint ownership. The pre-SAP period produced slow but uncompetitive growth while dramatic growth in the number of industries as well as closures was witnessed during the SAP period. The ANOM reveals that while the proportion of industries that closed is associated with their ISIC groupings, contrary to popular thinking it is independent of SAP. The pattern of survival and collapse of industries in Kano metropolis is best described as epileptic with industries declining, comatose or permanently closed. The ANOVA test reveals that the three-way and two-way interactions were not significant but endogenous, endowment, and macroeconomic policy factors were important in that order. Thus, the impact of the combination of the different factors does not differ with industry groups. In general, industrial production in Kano is an uphill task as about 80% of industries self-provide basic infrastructure such as electricity and water. However, industries differ in their perception of the factors affecting them and their Likert-type rankings. Moreover their perceptions and their Likert-type rankings differ suggesting industrialists‟ inability to objectively assess their situations. Endogenous factor scoring was therefore used to assess industries individually and collectively and to place them on the Path Dependence Model. Only 40% of industries are committed and fewer (20%) can be said to be successful. The study recommends that industrialization should not be a hobby but professionally-driven through „self-discovery‟ that is knowledge-driven. Rather than leave industries loose without guidance, centralised coordination of industrialization through policy and central provision of vital infrastructure is recommended. A policy of industrial mergers and acquisition, as is currently being done in the banking sector, is also recommended as closed industries tie down land and other resources.
Description
A DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, AHMADU BELLO UNIVERSITY, ZARIA
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE
DOCTOR OF PHILOSOPHY DEGREE IN GEOGRAPHY
Keywords
A SPATIAL,, ANALYSIS,, INDUSTRIA,, GROWTH,, DECLINE,, KANO,, METROPOLIS,, NIGERIA.