CHAPTER ONE
1.0 INTRODUCTION
Different countries of the world have different basis of defining industry. Some define it in terms of manpower; some prescribe a limit on capital investment while others define it on the basis of management structure. In Nigeria, various criteria are used for its definition. The small-scale industries in 1973 defines such enterprises as those having investment capital, (i.e. land, building, machinery, equipment and working capital of up to N60,000 and employing not more than 50 persons. But according to the Federal Ministry of Commerce and Industry, to the Nigeria Bank for Commerce and Industry (NBCI) in 1981/82 (for the purpose of the revolving loan scheme for industries). Such enterprise were regarded as those costing not more than N500,000 (including the cost of land but excluding working capital). This definition has been slightly modified by NBCI. The bank now says that resignation of industries in its guide excess N750,000 including the cost of land. But the industrial research unit of university of Ileife defines a small-scale industry as one whose total assets in capital equipment plant and working capital are less than N250,000 and employing fewer than 50 full time workers and in 1984, the Central Bank of Nigeria credit guideline to commercial and merchant banks, small-scale enterprise were resided as establishment whose turnover (sale figure) does not exceed N500,000.
At a recent workshop on industries held at the Administrative Staff Collage of Nigeria (ASCON) Badagry, participants agreed that a small-scale industry should be defined as an enterprises whose cost does not exceed N750,000 (total cost excluding land). ASCON wants this definition to remain in force until 1990. Nigeria industrialist have set up business in the Agro Based and Allied Industries, Rubber Base Industries as well as Leather, Stone, Chemical, the Metallurgical, Electrical Electronics and Service Industries etc. Industry occupies a significant place in industrial sector like Presidential Hotel. However, proper guidance is needed for and the country as a whole. This sector provides the consumer goods and services and helped in the development of artisans and managers, given Nigerians greater opportunity to gain experience in factory works and to study the simpler machines imported from abroad. It is evident that the quickest and most efficient method of industrialization especially in a developing nation like ours is through industries. Where as developed nations such as USA, Britain etc. continue to encourage by all possible means for growth of this class of industry. But in our own case the official attitude both in the national and state level have been lukewarm. However, the federal government is aware of awakening of Nigerians to be fully involved in managing and directing the country economy which would not be permanently left in the hands of foreigners. Therefore, in 1972, the Nigeria enterprise promotions decree other wise known as industrialization decree was promulgated.
The decree was aimed at affording Nigerians greater participation in economic activities especially in industrial sector of the economy, this sector in this organization – industries in Nigeria are principally concentrates in some part of the country like here in Enugu and other places in Nigeria including some local government area’s that have a number of units engaged in transitional industries and it is estimated that over 5000 small-scale units are accounted to exist in this state according to the official published in 1987 by the Anambra State Ministry of Finance and Economic Development (Statistics Division) Enugu. Industries although have received very little government assistance, occupies a significant position in the nations asset which has the greatest alteration for and is indeed the prime mover in any manufacturing industry, is the existence of a large market. The federal government and various state governments are now emphasizing the need for rural industrialization. This is mostly because we have perceive the need to diversity our economy thereby receiving our dependence on crude oil which for sometimes now has been hit by the oil glut.