DESIGN AND FABRICATED OF CAUSES OF FAILURE OF INDUSTRY IN NIGERIA (A CASE STUDY OF PRESIDENTIAL HOTEL ENUGU). A RESEARCH PROJECT MATERIAL ON ACCOUNTING
The aim of this research work is to highlight the problems facing small-scale industries in Nigeria. I have briefly in the introductions examined the definitions and roles of small-scale industries in Nigeria and the major problem facing them.I have also endeavored to offer feasible solution to these problems. This study has been divided into five main chapters, in chapter 1, I discussed briefly the importance of industrialization in fast growing economy like Nigeria. The causes of failure of industries in Nigeria were highlighted.
Chapter two tries to drew attention to the views of different writers, scholar as well as seasoned, and experienced industrialist who wrote or expressed their opinion on the use (causes of failure of industries).
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.