POLICY AND STRUCTURAL BARRIERS TO INDUSTRIAL REVITALIZATION IN NIGERIA’S SOUTH-EAST: EVIDENCE FROM MORIBUND MANUFACTURING FIRMS

Abstract

This study examined the policy and structural barriers hindering the revitalization of moribund manufacturing industries in Nigeria’s South-East, with a focus on Aba Textile Mills, Modern Ceramics (Umuahia), Nigercem Cement Factory, and Standard Shoe Factory Owerri. The research aimed to determine the extent to which regulatory and licensing challenges affect industrial revitalization, assess how tax burden and multiple taxation influence revival prospects, and evaluate the impact of inadequate power supply on operational capacity. A descriptive survey design was employed, and data were collected using a structured four-point Likert-scale questionnaire administered to 150 managers and policymakers across the selected industries. Data were analyzed using descriptive statistics—frequency, percentage, and mean scores—while multiple regression analysis was used to test the three hypotheses. The findings revealed that regulatory and licensing barriers significantly impeded revitalization efforts, with regression results indicating R = 0.641, R² = 0.411, p = 0.000. Tax burden and multiple taxation also exerted a strong negative influence on industrial revival, reflected in R = 0.693, R² = 0.480, p = 0.000. Inadequate power supply demonstrated the strongest effect on operational capacity, with R = 0.721, R² = 0.520, p = 0.000, indicating that 52% of variations in industrial performance were explained by power-related constraints. The study concluded that industrial decline in the South-East is driven largely by regulatory inefficiencies, fiscal pressures, and severe infrastructural weaknesses, particularly unstable electricity supply. It recommended regulatory reforms, a reduction of multiple taxation, and substantial investment in power infrastructure as key strategies to stimulate industrial revival.