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The massive and frequent rate of textile industry closure in Nigeria is a disturbing phenomenon. The main objective of the study is to identify the determinants of decline in selected texctile manufacturing companies’ in northern Nigeria. Cross sectional survey design was adopted in which relevant primary data was collected by means of questionnaire instrument. A sample of 384 was selected from the population of 7305 employees of four selected textiles manufacturing firms in northern Nigeria using stratified random sampling with proportionate sample size allocation. Data collected were analysed using factor analysis and three hypothesis were tested using multiple regression analysis. The results of multiple regression analysis show that only two factors acccount for declining of the textile industry. These are product quality and obsolete technology. While the remaining factor, foreign textile fabric does not significantly contribute to the decline. The study concludes that inadequate investment in modern textile technology led to production of low quality textile products which resulted in the collapse of textile industry in northern Nigeria. It recommeded investment in technological innovation and improvement to transform the industry.
1.2 Background to the Study
Over the last five decades since independence, Nigeria struggled to promote
industrial development. The efforts have generally yielded very modest success and the reality is that in the early 21st century Nigeria continues to face crisis of “Industrial development”. The Nigerian National Bureau of Statistics (NNBS; 2011) asserts that in the 1960s and 1970s Nigerian manufacturing sector developed positively as a result of Foreign Direct Investment (FDI).
Manufacturing sector of any economy plays a critical function in the
developmental process. The sector remains a source of high wage and low wage jobs
for all types of workers. It previously accounted for majority of Nigeria foreign trade
earnings and it remains essential if Nigeria is to make future major reduction in its
trade deficits. However, studies from National Association of Chambers of
Commerce, Industry, Mines and Agriculture (NACCIMA) (2011) classified over 50
percent of manufacturing companies as “ailing industries”. The industries include:
textiles, iron ore, plastic, aluminum, food processing, cement, automobile, etc. Yet,
the government‟s effort at reviving the ailing manufacturing concern has not yielded
the required result.
In Nigerian manufacturing history, textile industry occupies a unique position
because of its capacity to generate employment (Okere, 2009). Though, traditional
textile have been produced in Nigeria for many years, but modern textile production
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