Productivity in the Non-Oil Sector in Nigeria: Firm-Level Evidence (original) (raw)
Related papers
Productivity Improvement: A Pivotal Need For Continuous Economic Development in Nigeria
International Journal of Management and Commerce Innovations, 2022
Nigeria is extremely lucky as it is endowed with vast natural resources, resourcefulness, active and youthful human capital and innovation, the best all-year-round weather and all that a nation needs to become a big economic success. Despite these endowments, however, the present state of productivity and economic development in the nation cannot be gauged and positively assessed to be proportional to these great attributes. Where did Nigeria miss it? This study aimed to point out the need for productivity improvement for continuous economic development in Nigeria, examine the causes of the trend and analyze the most current productivity trend. The study applied a secondary method of data collection to analyze the most current trends of labour productivity in Nigeria. it discovered that the performance of the main drivers of the economy (manufacturing sector) has been unimpressive in terms of value in the year 2021. There is less labour demand in these industries coal mining, metal ores, electricity and gas. And also, wages in Nigeria were $8 per hour for the most the recent year 2021 which is considered extremely low when compared to other comparators countries in this study. The paper recommends possible ways and actions for raising national productivity in an emerging country like Nigeria
PRODUCTIVITY AND UNEMPLOYMENT IN NIGERIA
Productivity and employment are issues that are central to the social and economic life of every country. The extant literature refers to productivity and unemployment as constituting a vicious circle that explains the endemic nature of poverty in developing countries. And it has been argued that continuous improvement in productivity is the surest way to breaking this vicious circle. Growth in productivity provides a significant basis for adequate supply of goods and services thereby improving the welfare of the people and enhancing social progress. As pointed out by Dernburg (1985:63), "Without it there would be no growth in per capita income, and inflation control would be all the more difficult". In fact, the observation has been made that continuous enhancement of productivity has been very central to the brilliant performance of the Asian Tigers and Japan in recent years (Simbeye, 1992; World Bank 1993). Recent developments in the world economy have also shown that countries with high productivity are not only central to the determination of global balance of powers (e.g Japan and Germany), but also serve as centres of stimulus, where world resources (including labour) are redirected to, as opposed to countries with low or declining productivity. Recent studies, for example, Rensburg and Nande (1999) and Roberts and Tybout (1997) have also shown that high productivity increases competitiveness in terms of penetrating the world market. Thus, a country with high productivity is often characterized by a very high capacity utilization (optimal use of resources), high standard of living, low rate of unemployment and social progress. Unemployment, on the other hand, has been categorized as one of the serious impediments to social progress. Apart from representing a colossal waste of a country's manpower resources, it generates welfare loss in terms of lower output thereby leading to lower income and well-being (Akinboyo, 1987; and Raheem, 1993). Unemployment is a very serious issue in Africa (Vandemoortele, 1991 and Rama, 1998) and particularly in Nigeria (Oladeji, 1994 and Umo, 1996). The need to avert the negative effects of unemployment has made the tackling of unemployment problems to feature very prominently in the development objectives of many developing countries. Incidentally, most of these countries' economies are also characterized by low productivity. Thus, it seems obvious to many policy makers that there must be a straight forward connection between productivity and employment/unemployment. However, the theoretical linkage between productivity and unemployment is yet to be settled in the literature. While some researchers posit that higher productivity may increase unemployment (e.g. Diachavbre, 1991; Krugman, 1994), some others argue that it could increase employment (e.g Yesufu, 1984; Akerele, 1994; CEC, 1993).
Productivity measurement and growth in Nigeria: challenges and prospects
Economia. Seria Management, 2010
Productivity (growth) measurements (describing the assessment of an economy's rate of change in the ratio of a volume measure of output to a volume measure of input use) and related analysis are regular undertakings by staff of economic development of most nations and development institutions such as the OECD. Although they strive to accomplish objectives related to studying efficiency or the achievement of maximum output physically achievable under the use of current technology and given inputs, accounting for the contribution of real costs savings; introduction of benchmarks for production processes and to highlight living standards obtaining at points in time, its emphasis has been at the expense of examination of issues related to society (institutions), history, innovation and productivity change, which are concerned with promoting growth beyond mere productivity accounting. This paper has attempted to address all these issues as they pertain to Nigeria's rather stagnant or declining economy. This slight modification was prompted by changes from philosophers concerned with the wider area of productivity measurement and change. The literature agrees that productivity measurement (growth accounting) only "identified the significance of different proximate sources of growth" but fails to employ institutional, historical case studies to investigate the underlying causes of the growth, innovation and productivity change. Details of deficiencies related to the foregoing issues are examined and policy recommendations drafted and presented to assist practitioners, policy and decision makers and other stakeholders.
Productivity Change and Competitiveness as Determinants of National Transformation in Nigeria
ABSTRACT:-Productivity is a core consideration in the development equation of countries that strive for economic strength, increase in national revenue through foreign exchange earnings and overall improvement in the standard of living of its citizens. It has therefore become a core concept for development planners and institutions. Any country that exhibits a lackluster attitude to productivity is consciously inviting poverty. This paper examines the sanctity of productivity change and competitiveness as a sin qua non to national development and hypothesizes that effective resource diversification to productivity change and competitiveness could reposition Nigeria on the path of national transformation. Basic data for the paper were through literature search. The paper outlines the determinants of productivity change and the place of policy in changing the production direction of Nigeria. It observes that Nigeria productivity is conditioned by a mono resource (Oil). It concludes that a conscious policy direction on resource diversification will place Nigeria in the direction of productivity change. To achieve this, the paper recommends effective collaboration between the state, academia and the industry in the development of knowledge base economy KEYWORDS: Productivity, competitiveness, National transformation, Nigeria
Ghana has been touted as one of the fastest growing economies in Sub-Saharan Africa in the recent past. However, after witnessing a slump in growth as well as numerous macroeconomic challenges, it has become increasingly evident that productivity-based growth must be the sustainable strategy to turn the economic fortunes around. Our analysis shows that both national and sectoral productivity growth have declined with intermittent negative growth rates recorded between 2006 and 2016. We recommended that conscious efforts should be made to ensure judicious use of resources as well as the promotion of public awareness and sensitization programmes on productivity improvement techniques to aid alleviate poverty and high unemployment rates in the country. The institution of productivity measurement framework at all levels of the economy is strongly recommended.
The study was designed to analyze the determinants of productivity among firms with specialization in producing and using agricultural products respectively in Abia State, Nigeria. Data were collected with structured questionnaire from 72 randomly selected firms comprising firms using and producing agricultural products respectively. Data were analyzed using simple descriptive statistics, chi-square and multiple regression analyses models. Results show that majority (56.25%) of firms using agricultural products are experienced and acclimatized to the investment climate of the area, 68.75% and 71.42% of the firms using and producing agricultural products respectively never borrowed their start-up capital, 87.7% and 100% of the firms producing and using of agricultural products in the study area have asset worth of N1-N10 million naira respectively and, there is a deep impression that marketing problems in conjunction with capital inadequacy (68.75%) have profoundly constrained the productivity of both firms. It further revealed that there is a significant difference between employee qualification and productivity and also a significant difference between on-job training and productivity of the firms. The multiple regression analysis showed that taxation and amount paid to employees was significant and negatively related to productivity whereas, amount invested in manpower and working condition of employees was significant and positively related to productivity. On the basis of the results, the study recommended among other factors, improved and good wages and salaries incentives to employees as a panacea for their continual stay with the firms. This will also boost their morale and enhance productivity.
Contributions of the Productive Sectors’ to the Nigeria Economic Performance
Canadian Social Science, 2018
The study empirically examined the contributions of the productive sectors’ to the Nigeria economic performance from 1981 to 2016. The study gathered time-series data majorly from the Central Bank of Nigeria Statistical Bulletin. The model in the study specified total gross domestic product of Nigeria as a function of the contributions of the manufacturing, agricultural, oil and gas, building, transport and trading sectors in the Nigerian economy. Employing the classical Ordinary Least Square estimates, ADF unit root test, Johansen Co-integration estimation techniques and Error Correction Modelling to analyse the data obtained. Based on the parsimonious error correction result, the study empirically explored that the ECM is correctly signed and significant and all the explanatory variables were positively and significantly related to the total GDP a proxy of economic performance in Nigeria. The study concluded that the productive sectors in Nigeria exert positive and significant inf...
An Assessment of the Determinants of Productivity in the Electricity Industry in Nigeria
The study examined the productivity in the electricity industry in Nigeria. The aim of the study was to ascertain the determinants of productivity in the electricity sector. The research design adopted for the study was a longitudinal study of productivity in the electricity industry in Nigeria. The study considered time series data for a 20 year period from 1996 to 2015. Data on study variables were obtained from Central Bank of Nigeria (CBN) statistical bulletins, National Bureau of Statistics (NBS) annual publications, and the websites of both Transparency International (TI) and Energy Information Administration (EIA). Based on the study objectives, the fully modified ordinary least square (FM-OLS) technique was used to estimate the multiple regressions between productivity and the explanatory variables. Data analyses were carried out using the software application of E-View 9.0. Results from the study showed that the total factor productivity which is an indication of efficiency in the electricity sector was 0.29. This is low when compared with international best practice of 0.80. Also, results from the study revealed that funding, weather condition, vandalism and labour supply have significant effect on productivity of the electricity industry in Nigeria. However, tariff structure and corruption were not statistically significant in the prediction of productivity in the electricity industry. The study recommended that increased budgetary allocations should be made available to the electricity industry to provide the needed improvements in the sector.