The effect of trade policies on the performance of Nigeria’s manufacturing sector: Evidence from Kano State (2000–2020)
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Background of the Study :
Trade policies significantly affect the performance of the manufacturing sector by shaping market access, input costs, and competitive dynamics. In Kano State, Nigeria’s industrial heartland, trade policy reforms have been implemented to enhance the competitiveness of local manufacturers. Between 2000 and 2020, initiatives such as tariff reductions, export incentives, and import substitution strategies have been introduced to boost manufacturing output and promote industrialization (Ibrahim, 2023). These measures are intended to create a favorable business environment, reduce production costs, and stimulate innovation in the manufacturing industry. However, persistent challenges including inconsistent policy implementation, infrastructural deficits, and global market volatility have undermined the potential benefits of these reforms (Okonkwo, 2024). This study examines the effect of trade policies on the performance of Nigeria’s manufacturing sector in Kano State by analyzing productivity data, export performance, and competitive positioning. The research aims to provide a comprehensive understanding of how trade policy reforms impact industrial growth and to propose strategies for enhancing the sector’s performance through better policy alignment and support (Chukwu, 2025).
Statement of the Problem
Despite trade policy reforms, the manufacturing sector in Kano State continues to face challenges in achieving optimal performance. Inconsistent policy enforcement and infrastructural shortcomings have resulted in high production costs and limited market competitiveness (Adeniyi, 2023). These challenges hinder the sector’s ability to expand and innovate, thereby affecting overall economic growth. The gap between policy objectives and industrial outcomes raises questions about the efficacy of current trade measures. This study aims to identify the key constraints affecting manufacturing performance and to evaluate the impact of trade policies on industrial growth, providing insights into necessary policy adjustments to better support the manufacturing sector (Uche, 2024).
Objectives of the Study:
1. To evaluate the impact of trade policies on the manufacturing sector in Kano State.
2. To identify challenges hindering the sector’s performance.
3. To propose policy recommendations for enhancing manufacturing competitiveness.
Research Questions:
1. How do trade policies affect manufacturing performance in Kano State?
2. What are the primary challenges facing the sector?
3. What strategies can improve the effectiveness of trade policies for manufacturing?
Research Hypotheses:
1. H1: Trade policies have a positive effect on manufacturing performance.
2. H2: Infrastructural deficits negatively affect the sector’s competitiveness.
3. H3: Policy consistency enhances industrial growth in manufacturing.
Significance of the Study (100 words):
This study examines the influence of trade policies on Nigeria’s manufacturing sector in Kano State, offering critical insights for policymakers and industry leaders. By identifying policy gaps and suggesting actionable reforms, the research supports efforts to strengthen industrial competitiveness and promote sustainable economic growth. The findings will assist in designing better trade measures that enhance the performance of the manufacturing sector (Okafor, 2023).
Scope and Limitations of the Study:
The study is limited to assessing the impact of trade policies on the manufacturing sector in Kano State, focusing exclusively on policy analysis and industry performance metrics.
Definitions of Terms:
1. Trade Policies: Government regulations that influence international and domestic trade.
2. Manufacturing Sector: Industries involved in the production of goods through processing raw materials.
3. Kano State: An industrial hub in Nigeria, serving as the case study for this research.
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