An evaluation of state governments’ role in promoting industrial clusters in Nigeria: Evidence from Ogun State (2000–2020).
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Background of the Study:
Industrial clusters have emerged as a pivotal strategy for regional economic development by fostering innovation, enhancing competitiveness, and generating employment. In Ogun State, state governments have played a crucial role in nurturing these clusters through targeted policies, infrastructural investments, and public–private partnerships (Ijeoma, 2023). These clusters are designed to consolidate related industries within a geographic area, thereby enabling shared resources, improved supply chain efficiencies, and enhanced market access. Over the study period, initiatives have included the establishment of industrial parks, incentives for technology transfer, and support programs aimed at boosting local manufacturing capabilities (Nnamdi, 2024). Despite these efforts, challenges such as bureaucratic inefficiencies, inadequate infrastructure, and coordination gaps have hindered optimal cluster performance (Obi, 2025). This study critically examines the extent to which state governments in Ogun State have successfully promoted industrial clusters, evaluating the economic benefits realized and identifying the policy gaps that impede their full potential.
Statement of the Problem:
Although state governments have implemented various initiatives to develop industrial clusters in Ogun State, these efforts have not consistently translated into sustained economic growth. Persistent infrastructural deficits, administrative bottlenecks, and misaligned incentives have limited the clusters’ ability to compete effectively at regional and global levels (Ijeoma, 2023). Such challenges result in underutilized industrial potential and hinder local job creation and innovation (Nnamdi, 2024). The study seeks to uncover the underlying reasons for these shortcomings and propose targeted strategies to optimize cluster performance, thereby bolstering industrial growth and regional development (Obi, 2025).
Objectives of the Study:
• To assess the role of state government policies in promoting industrial clusters in Ogun State.
• To identify challenges affecting the efficiency of industrial cluster development.
• To recommend policy measures for enhancing the competitiveness of industrial clusters.
Research Questions:
• How have state government policies influenced the development of industrial clusters in Ogun State?
• What are the main challenges faced by industrial clusters in the region?
• What policy interventions can improve cluster performance and regional economic development?
Research Hypotheses:
• H1: State government interventions have a positive impact on the development of industrial clusters.
• H2: Infrastructure and administrative inefficiencies significantly hinder cluster performance.
• H3: Enhanced policy coordination can improve the competitiveness of industrial clusters.
Significance of the Study:
This study provides an in-depth evaluation of the role of state governments in promoting industrial clusters. Its findings will help policymakers refine intervention strategies to maximize economic benefits, stimulate local industry, and support regional development in Ogun State (Ijeoma, 2023; Nnamdi, 2024).
Scope and Limitations of the Study:
This study is limited to evaluating state government policies and their impact on industrial clusters in Ogun State, without extending to other regions or industries.
Definitions of Terms:
• Industrial Clusters: Geographic concentrations of interconnected companies and institutions in a particular field.
• Public–Private Partnerships: Collaborative arrangements between government agencies and private-sector companies.
• Regional Competitiveness: The ability of a region to attract and sustain economic activities relative to others.
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