Assessment of government policy on the foundry industry in Nigeria
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Date
2015
Authors
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Journal ISSN
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Publisher
Obafemi Awolowo University
Abstract
The study examined the awareness of government policy objectives and strategies guiding the foundry industry in Nigeria among stakeholders. It also investigated the extent of their implementation and assessed factors influencing the performance of the industry. This was with a view to designing a policy framework that will improve the performance of the firms in the foundry industry.
The respondents were selected purposively from the Southwestern and Southeastern Nigeria. Lagos and Oyo states were selected in the Southwest, while Anambra state was selected in the Southeast. Four sets of questionnaire totaling 245 were designed for the study. The first set was developed for (60) foundry entrepreneurs and their staff, the second set was designed for 25 respondents from the knowledge institutions. The third set was designed for 10 respondents from the implementing agencies, while the fourth set was for 150 consumers of the foundry products. The questionnaire elicited information on the socio-economic characteristics of the respondents, level of awareness of the policy among stakeholders, availability of raw materials, extent of the implementation of the policy and factors influencing the performance of the firms in the industry. Data were analysed using both descriptive and inferential statistics.
The result showed that 54.5% of the respondents from knowledge institutions were aware of the government policy guiding the industry while 34.0 and 62.9% of the foundry entrepreneurs and product consumers respectively were also aware of the policy. The study also showed that 16.9, 15.6 and 14.3% of the consumers of the foundry products, foundry entrepreneurs and knowledge institutions respectively were involved in the policy development. In addition, based on a 4-point Likert rating scale, the results showed that the extent of implementation of the policy by the knowledge institutions indicated that manpower development (2.64), creation of investment friendly environment (2.64), and banning exportation of metal scrap (2.60) were the aspects of the policy that had been implemented. Similarly, the foundry firms considered utilisation of locally sourced material (3.25), giving incentives to the foundry firms (3.00) and banning of exportation of metal scraps (3.00) as policy objectives that had been effectively implemented. However, the implementation of other policy objectives such as control of air pollution, waste and emission (2.04), increasing global competitiveness (2.00), reducing tariff on imported foundry raw materials (1.63) and increasing tariff on imported foundry products (1.68) were slightly effective. Furthermore, the results showed that the factors that significantly (F=11.094, p<0.001) influenced the performance of the foundry industry wereerratic power supply (4.00), flooding market with imported foundry products (4.00), difficulty in obtaining local raw materials (3.8), inadequate manpower (3.72), low patronage of local products (3.80). A policy framework was designed and popularization of the policy, provision of adequate infrastructural facilities and financial support services were considered as objectives that will improve performance of the industry.
The study concluded that the implementation of the foundry policy was partially effective due to government inconsistency execution and stakeholder’s insufficient awareness of the policy thereby affecting the overall performance of the foundry industry.
Description
xvii,188
Keywords
Goverment Policy Objectives, Goverment Strategies, Foundry Industry in Nigeria, Southwestern, Southeastern, Nigeria, Erratic Power Suply
Citation
Onibokun, K.A. (2015). Assessment of government policy on the foundry industry in Nigeria.