The impact of technology adoption on productivity in Nigeria’s manufacturing sector: An evaluation of policies in Lagos State (2000–2020).
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Background of the Study:
Technological advancements have become the cornerstone of productivity enhancement in modern manufacturing sectors worldwide. In Lagos State, technology adoption has been central to the modernization of Nigeria’s manufacturing industry. Over the past two decades, policies aimed at encouraging the uptake of innovative production techniques, automation, and digital transformation have been implemented to improve productivity and global competitiveness (Balogun, 2023). These policies have facilitated the integration of modern machinery and digital platforms into traditional manufacturing processes, resulting in significant improvements in efficiency, quality, and cost–effectiveness. Moreover, the interplay between government incentives, research and development investments, and partnerships with private technology firms has spurred a transformation that not only enhances output but also supports job creation and skill development (Chin, 2024). Despite these positive developments, challenges remain in the form of high initial investment costs, inadequate technical expertise, and occasional policy inconsistencies that impede seamless technology adoption (Olawale, 2025). This study investigates how policy–driven technology adoption has impacted productivity in Lagos’ manufacturing sector and seeks to quantify its benefits while identifying critical areas for further improvement.
Statement of the Problem:
Despite aggressive policy measures to promote technology adoption, the manufacturing sector in Lagos State continues to struggle with suboptimal productivity levels. Barriers such as high capital costs, limited access to advanced technology, and insufficient technical training have undermined the potential gains from technological integration (Balogun, 2023). Additionally, the lack of coordinated policy implementation and sporadic government incentives has created an uneven landscape where only select industries reap the benefits of technological progress (Chin, 2024). The study aims to identify these obstacles and assess their impact on productivity, thereby pinpointing areas where policy modifications can further enhance manufacturing efficiency (Olawale, 2025).
Objectives of the Study:
• To evaluate the extent of technology adoption in Lagos’ manufacturing sector.
• To assess the impact of government policies on manufacturing productivity.
• To identify challenges and propose recommendations for improved technological integration.
Research Questions:
• How has technology adoption affected productivity in Lagos’ manufacturing sector?
• What are the key policy drivers facilitating technology integration?
• What challenges impede the full realization of productivity gains through technology?
Research Hypotheses:
• H1: Technology adoption significantly improves productivity in the manufacturing sector.
• H2: Effective government policies are positively correlated with higher rates of technological integration.
• H3: High capital costs and skill deficits negatively affect the benefits of technology adoption.
Significance of the Study:
This study critically assesses the role of technology adoption in enhancing productivity within Lagos State’s manufacturing sector. Its findings will inform policymakers and industry stakeholders about the effectiveness of current policies and highlight areas for improvement to sustain industrial competitiveness (Balogun, 2023; Chin, 2024).
Scope and Limitations of the Study:
This study is limited to the evaluation of technology adoption policies and their impact on productivity in Lagos’ manufacturing sector.
Definitions of Terms:
• Technology Adoption: The process by which new technologies are incorporated into existing production systems.
• Productivity: The efficiency with which goods and services are produced.
• Manufacturing Sector: The segment of the economy that produces finished goods from raw materials.
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