Growth Patterns in Manufacturing Employment in Nigerian Cities

GROWTH PATTERNS IN MANUFACTURING EMPLOYMENT IN NIGERIAN CITIES J. Oluwole Oyebamji* Introduction industries and infrastructural facilities (Nigeria 1981, p. 36). As the federal govern Like many developing countries, Nigeria ment aptly puts it, "a situation where some apparently has regarded industrialization as parts of the country are experiencing rapid eco the major panacea to the country's development nomic growth while other parts are lagging problems. Although essentially an agricultural behind can no longer be tolerated" (Nigeria country, world experience seems to have con 1970, p. 34; 1975, p. 30). Hence, the federal gov vinced Nigeria that in order to advance like the ernment further argues, "consistent with the other modern nations, the industrial (manufac government's policy of fostering even develop turing) sector must be accorded high priority. ment of all parts of the country, dispersal of In keeping with this belief therefore, Nigeria industries will be actively promoted" (Nigeria has continued to involve itself in the direct 1980a, pp. 19-20). establishment of strategic industry and in joint Of the grand objectives of industrial devel ownership of numerous others. Also, in order to opment in Nigeria earlier outlined, that which encourage private entrepreneurs, government seems to have been most difficult to achieve is has provided various forms of incentives such equiproportionate growth. As in other parts of as protective tariffs, income tax exemptions the world, for various reasons that are both his and infrastructural development, particularly torical and economic, manufacturing develop for industries oriented towards domestic needs ment has remained strongly urban oriented (Schatzl 1973, pp 29-30). Among the many even among countries that are already at the grand objectives of industrial development in post-industrial stage. For example, the rural Nigeria are the provision of employment oppor share of the manufacturing labor force in the tunities, foreign exchange savings (particu United States was only 17.5% of the national larly on consumer goods), steady promotion of total by 1970, while for France it was only capital goods industries and equitable distri about 15.0% by 1967. Similarly for Canada by bution of industrial establishments. 1971, rural manufacturing employment was An equitable policy is required by the politi only about 15.0% of the national total (Bryant cal and social history of the country. With her 1980, pp. 108-109). Among the developing estimated 80 million people comprising more countries, particularly in Africa, rural manu than 250 tribal groups each apparently suspi facturing employment is very negligible. In cious of the other regarding how the "national Gambia, Liberia, Gabon and Rwanda, manu cake" would be shared, and also, with the facturing is totally urban, while in Nigeria unhappy memories of the civil wars (1967- rural manufacturing employment consitutes 1970) which represented the climax of inter less than 3.0% of the national total, with more tribal wranglings in the country, Nigeria has than 90% in the total in less than a score urban had to abandon industrial policy based on the settlements (Oyebanji, 1982a). growth pole approach for one based on the bal Thus in Nigeria, as elsewhere, because of anced development approach (Oyebanji, accessibility to markets and raw materials, and 1982b). Thus, national policy now aims at the economies ofurbanizations and large scale hor promotion of more even geographical spread of izontal and vertical linkages available in urban locations, manufacturing industries have *Reader in Geography, Univeristy of I!orin (Nigeria). agglomerated in cities. Consequently, Lagos, 51 52 The Review ofRegional Studies the capital city and the main center for com about 265,000 people or 98.9% of the national merce, transportation and government (also manufacturing employment by 1978. The ter the nation's principal port) currently has about minal years 1968 and 1978 were used respec half of the country's total manufacturing tively because the 1970 Directory only employment. Kano in the north, whose com contained information on industries estab mercial reputation dates back to the pre-colon lished as of 1978. ial times, ranks second, with about eleven In the final analysis, all cities with at least percent of the total manufacturing employment 20,000 people but with total manufacturing in the country. Port Harcourt which ranks third employment less than 500 people were dropped. with about nine percent is the country's second This amounted to 25 cities, and meant that only largest port and the nation's major petroleum 25 cities were eventually more closely studied. city. Finally, Kaduna in the north which ranks Happily, these selected 25 cities altogether fourth with about six percent of the national employed about 93.54% of the total urban man employment is a famous administrative center ufacturing employment by 1968, and about of long standing. These four cities collectively 97.93% of the total urban manufacturing employed about 75% of the country's total man employment by 1978 (Table 1). Thus, they were ufacturing labor force by 1978 (Nigeria, 1980b). quite representative of the total picture of man Although various infrastructural incentives ufacturing characteristics in Nigerian cities. such as industrial estates, roads, water and electricity are being made available to hitherto Analysis of Growth Patterns less privileged settlements, it has not been pos sible to easily discourage urban location of Structural Components of Urban industrial activities, especially as the large Manufacturing majority are owned by the private sector whose The structural components of manufacturing principal goal is one of financial, rather than in the 25 biggest manufacturing centers can be social, profitability. observed in Table 2. Whereas in 1968, textile and food items dominated the urban structure, Research Purpose and Data Sources chemicals, basic metals and fabricated metals The purpose of the present study is to exam had started to gain ground by 1978. This was ine and analyze the growth patterns of manu very much in agreement with the national facturing employment in Nigerian Cities. industrial objective of promoting capital good Manufacturing in the present context includes industries (Nigeria 1970b; 1975). Thus, while the processing and fabrication of raw materials the producer and capital goods sectors and/or semifinished goods into new products, employed only 29.32% of the total urban man but excludes mining, fishing and repair ser ufacturing labor force by 1968, it had reached vices. Consequently only the industry groups an impressively high level of 46.09% by 1978, ISIC (International Standard Industrial Clas thus gaining nearly 17 percent points. The sification) 31-39, adopting a two-digit classifi highest growth rates (excepting miscellaneous cation, are of relevance to the present study. ISIC 39) were in fabricated metals, basic met- Since emphasis in this paper is on urban man ufacturing, employment data for each industry TABLE 1 group were calculated for all cities with at least 20,000 people by the latest population census of Nigeria: Manufacturing Employment, 1968 and 1978 the country (1963), using the national Indus Area 1968 Percent 1978 Percent trial Directories of 1970 and 1980 respectively (Nigeria 1970a; 1980b). Overall, about eighty Urban areas 88,000 96.70 265,050 98.90 cities were identified with manufacturing 25 cities 85,125 93.54 262,452 97.93 employment ranging from more than 126,000 Other cities 2,875 3.16 2,598 0.97 for Lagos in 1978, to less than 20 employees for Non-urban areas 3,000 3.30 2,950 1.10 such cities as Potiskum, Katsina and Ikole Total, all areas 91,000 100.00 268,000 100.00 Ekiti. Altogether, the eighty manufacturing Source: Computed by author from Nigeria, Federal Repub- cities so identified employed about 88,000 peo lie. Industrial Directory, 1970; 1975 (Lagos: Fed- ple or 96.70% of the national total by 1968, and era! Ministry oflndustries). Growth Patterns in Manufacturing Employment in Nigerian Cities 53 TABLE 2 Distribution of Manufacturing Employment in Nigerian Cities 1968-78 1968 1968 1978 1978 Change Change CITY STATE Total % Total % Absolute % 1. Aba Imo 3,099 3.64 9,838 3.75 6,739 0.11 2. Abeokuta Ogun 271 0.32 609 0.23 338 - 0.09 3. Ado-Ekiti On do 121 0.14 1,846 0.70 1,728 0.56 4. Benin Bendel 2,916 3.43 10,022 3.82 7,106 0.39 5. Calabar Cross River 2,978 3.50 8,175 3.11 5,197 - 0.39 6. Enugu Anambra 1,505 1.77 4,020 1.53 2,515 - 0.24 7. Funtua Kaduna 225 0.26 617 0.24 392 - 0.02 8. Gusau Sokoto 1,800 2.11 1,875 0.71 75 - 1.40 9. Ibadan Oyo 3,415 4.01 3,965 1.51 550 - 2.50 10. Borin Kwara 1,184 1.39 1,997 0.76 813 - 0.63 11. Jos Plateau 797 0.94 3,330 1.27 2,533 0.33 12. Kaduna Kaduna 8,950 10.51 15,241 5.81 6,291 - 4.70 13. Kano Kano 10,762 12.64 29,167 11.11 18,405 - 1.53 14. Greater Lagos Lagos 26,407 31.02 126,524 48.21 100,117 17 .19 15. Maiduguri Borno 592 0.70 608 0.23 16 - 0.47 16. Ondo On do 92 0.10 634 0.24 542 0.14 17. Onitsha Anambra 2,239 2.63 3,067 1.17 828 - 1.46 18. Owerri lmo 267 0.31 854 0.33 587 0.01 19. Port Harcourt Rivers 6,329 7.44 24,442 9.31 18,113 1.87 20. Sapele Bendel 8,941 10.50 5,918 2.26 -3,023 - 8.24 21. Sokoto Sokoto 258 0.30 1,141 0.44 883 0.14 22.

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