An examination of the effects of import tariffs on local manufacturing in Nigeria: Evidence from Kaduna State (2000–2020).
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Background of the Study:
Import tariffs have long been used as a policy tool to protect domestic industries from international competition. In Nigeria, tariff policies have significantly influenced the industrial landscape, particularly in Kaduna State, where local manufacturing is a cornerstone of the economy (Obi, 2023). Over the study period, tariffs were implemented to encourage domestic production, reduce dependency on imports, and stimulate economic growth. These measures aimed to shield local manufacturers from global market volatilities while promoting self-sufficiency (Ade, 2024). However, while tariffs can provide temporary protection, they also tend to increase production costs and potentially lead to inefficiencies within the sector. Empirical evidence from Kaduna State indicates that the protective measures have produced mixed outcomes, with some gains in industrial output being offset by higher consumer prices and reduced competitive drive. The study critically examines the multifaceted impact of import tariffs on local manufacturing, exploring both the benefits and adverse effects, and offers policy insights to optimize the balance between protectionism and competitiveness (Bello, 2025).
Statement of the Problem:
Despite the intended protective benefits, Kaduna State’s manufacturing sector has encountered numerous challenges. The imposition of import tariffs has sometimes resulted in increased production costs and market distortions, reducing the competitiveness of domestic industries (Obi, 2023). Manufacturers struggle with rising input costs and lack of access to advanced technology, which stifles innovation (Ade, 2024). These challenges indicate a gap between the theoretical advantages of tariff policies and the practical realities faced by local businesses. The study seeks to identify the critical factors that undermine the effectiveness of import tariffs and assess whether these policies ultimately hinder or help the local manufacturing sector (Bello, 2025).
Objectives of the Study:
• To analyze the impact of import tariffs on the competitiveness of local manufacturing.
• To evaluate the economic implications of tariff policies on production costs.
• To propose policy recommendations for optimizing trade measures to support domestic industries.
Research Questions:
• How do import tariffs affect the competitiveness of local manufacturing in Kaduna State?
• What are the economic implications of current tariff policies on domestic production costs?
• Which policy adjustments can enhance the performance of local industries in the context of global trade?
Research Hypotheses:
• H1: Import tariffs significantly influence the competitiveness of local manufacturing.
• H2: Higher tariffs lead to increased production costs for domestic industries.
• H3: Policy modifications can mitigate negative impacts and stimulate growth in local manufacturing.
Significance of the Study:
This study offers crucial insights into the trade-off between protectionism and competitiveness in Nigeria’s manufacturing sector. The evidence-based recommendations aim to refine tariff policies to foster a sustainable industrial environment (Obi, 2023; Ade, 2024).
Scope and Limitations of the Study:
This study is limited to analyzing the effects of import tariffs on local manufacturing in Kaduna State, focusing on economic implications and policy impacts. It does not consider broader national or international trade dynamics.
Definitions of Terms:
• Import Tariffs: Taxes imposed on imported goods to protect domestic industries.
• Local Manufacturing: Production of goods within a domestic economy.
• Trade Policy: Government regulations and measures governing international trade practices.
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