THE ROLE OF INVESTMENT PROMOTION IN THE INDUSTRIALIZATION OF AKWA IBOM STATE. (A CASE STUDY OF AKWA IBOM STATE INVESTMENT AND INDUSTRIAL PROMOTION COUNCIL (AKIIPOC)
Investment promotion plays important roles in the industrialization efforts of nations, states and communities. This perhaps informed the setting up of Akwa Ibom Investment and Industrial Promotion Council (AKIIPOC). This study mainly set out to assess the roles which investment promotion plays in industrialization and to see how far it has been used in Akwa Ibom State to hasten the pace of industrialization. The study was descriptive survey and it relied on primary data made possible by questionnaires, interviews, observations, and secondary data obtained from books, magazine, journals, internet, etc. Tables and simple percentage were used to analyse data while the chi-square(X2) statistical tool was used in testing formulated hypothesis. It was found out that investment promotion is essential for industrialization. Useful recommendations were also made so as to increase the impact of investment promotion on industrialization. To this end, data on locally available raw materials should be publicised to lure, would be investors to the state. Also, an industrial investment fund should be established to complement the activities of AKIIPOC so that interested investors (local or foreign) could have stand-by funds to invest in any industry of their choice within the state.
TABLE OF CONTENTS
Title Page - - - - - - - - ii
Certification - - - - - - - - iii
Declaration - - - - - - - - iv
Acknowledgement - - - - - - - v
Dedication - - - - - - - - vi
Abstract - - - - - - - - vii
Table of Contents - - - - - - viii
1.1 Background of the Study - - - - - 1
1.2 Statement of the Problem - - - - - 3
1.3 Purpose of the Study - - - - 4
1.4 Objectives of the Study - - - - - 4
1.5 Research Questions - - - - - 5
1.6 Research Hypotheses - - - - - 5
1.7 Significance of the Study - - - - - 6
1.8 Scope and Limitation of the Study - - - 7
1.9 Definition of Terms - - - - - - 7
1.10 Historical Background of Akwa Ibom Investment
and Industrial Promotion Council (AKIIPOC) - 8
2.1 Introduction - - - - - - - 12
2.2 Theoretical Framework - - - - - 13
2.3 What is Investment - - - - - 17
2.4 Investment Promotion in the 21st Century - - 18
2.5 Ways of carrying out Investment Promotion - - 22
2.6 Agencies Involved in Investment Promotion - - 23
2.7 Avenues for Carrying out Effective Investment
Promotion - - - - - - - 29
2.8 Benefits of Investment Promotion - - - 31
2.9 Improving Industrial Base Through Investment
Promotion - - - - - - - 34
3.1 Introduction - - - - - - - 37
3.2 Areas of Study - - - - - - 37
3.3 Population Sample and Sampling Procedure - - 37
3.4 Types of Location of Data Used - - - - 38
3.5 Instruments and Methods of D0ata Collection - - 38
3.6 Methods and Instrument for Data Analysis - - 39
3.7 Instrument for Data Analysis - - - - - 39
DATA PRESENTATION AND ANALYSIS
4.1 Introduction - - - - - - 41
4.2 Respondents Characteristics and Classification - 41
4.3 Presentation and Analysis of Data to Research
Questions - - - - - - - - 42
4.4 Test of Hypothesis - - - - - - 46
4.5 Discussion of Findings - - - - - - 51
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction - - - - - - - 52
5.2 Summary - - - - - - - 52
5.3 Conclusion - - - - - - - 53
5.4 Recommendations - - - - - - 53
1.1 BACKGROUND OF THE STUDY
Every business organization irrespective of its nature and period of existence makes use of Human and Non-Human Resources (factors) in order for it to attain the goals and objectives of the organization. Over the years, the role of investment promotion in the industrialization of Nigeria economy has been brought to the fore. Investment Promotion Agency (IPA) is most often a government agency (or occasionally a non-profit organization functioning similar to a chamber of commerce) whose mission is to attract investment and industrialization to a country, state, region or city.
The agency does this by introducing investors with local real estate, developers and other commercial service companies, providing useful statistical information such as average wages and by managing any investment incentive that the city, state or country may offer to companies which invest with them. Thereby enhancing the industrialization of Nigeria economy.
On the other hand, industrialization is the period of social and economic change that transforms a human group from an agrarian society into an industrial one. It is a part of a wider modernization process, where social change and economic development are closely related with technological innovation, particularly with the development of large-scale energy and metallurgy product. Olawasde (2000).
It is the extensive organization of an economy for the purpose of manufacturing. Industrialization also introduces a form of philosophical change where people obtain a different attitude towards their perception of nature and a sociological process of ubiquitous rationalization. Akpan et al (1990).
There is considerable literature on the factors facilitating industrial modernization and enterprise development. Key positive factors identified by researchers have ranged from favourable politico-legal environments for industry and commerce, through abundant natural resources of various kinds, to plentiful supplies of relatively low-cost, skilled and adaptable labour. Bliss S. (1989).
As industrial workers’ incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and economic growth. The first country to industrialize was the United Kingdom during the Industrial Revolution, commencing in the 18th Century, East Asia had become one of the most recently industrialized regions of the world. Jean (1990).
1.2 STATEMENT OF THE PROBLEM
Over the years there have been problems militating against the development and industrialization of Akwa Ibom State. This research intends to find out the roles of investment promotion in the industrialization of Akwa Ibom State.
Moreso, the researcher will examine the problems of inefficiency arising from poor industrialization practices in Akwa Ibom State.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to critically appraise the roles of investment promotion in the industrialization of Akwa Ibom State. It will look at how investment promotion has been used by Akwa Ibom State government to increase the level of industrialization in the State.
1.4 OBJECTIVES OF THE STUDY
The objectives of this research work include the following:-
a. To examine efforts to industrialize Akwa Ibom over the years, and review how it has assisted the citizens in Akwa Ibom State.
b. To find out whether investment promotion as well as industrialization brings about the development of the state.
c. To find out whether there is any significant relationship between investment promotion and industrialization.
d. To examine ways of boosting industrial practices among the citizens of the state.
1.5 RESEARCH QUESTIONS
The following research questions will be answered during the course of the research:-
i. Does investment promotion contribute to industrialization of a state?
ii. Does investment promotion attract investors to Akwa Ibom State?
iii. Does investment promotion stimulate the utilization of available local raw materials?
1.6 RESEARCH HYPOTHESIS
The following hypothesis were formulated and would be tested during the study.
a Ho: Investment promotion does not contribute to industrialization of a state.
Hi: Investment promotion contributes to industrialization of a state.
b. Ho: Investment promotion does not attract investors to Akwa Ibom State.
Hi: Investment promotion attracts investors to Akwa Ibom State.
c. Ho: Investment promotion does not stimulate the utilization of available local raw materials.
Hi: Investment promotion stimulates the utilization of available local raw materials.
1.7 SIGNIFICANCE OF THE STUDY
The study is significant in the following ways:-
i. It will help in broadening the research’s horizon in the field of investment promotion and industrialization.
ii. This study will be useful to managers, administrators and researchers to see the need for improving the industrial and investment portfolio of Akwa Ibom State and the entire federation of Nigeria.
iii. It is believed that this study will also serve to encourage individuals, groups, corporate bodies to realize the essence of industrialization in the state.
iv. It will also assist students who want to research on similar issues.
1.8 SCOPE AND LIMITATION OF THE STUDY
The scope of the study is limited to only the role of investment promotion in the industrialization of Akwa Ibom State with AKIIPOC as case of study. However, certain limitations occurred in the course of this research study. They are discussed below:-
a. Poor response form respondents as most of the respondents would not clearly express their views though the questions were simplified.
b. Lack of funds also hindered the researcher’s ability to research further. However, this did not affect the quality and success of the work.
1.9 DEFINITION OF TERMS
For easy understanding of this research report, some terms were defined as they are used by the researcher in the course of this research.
a. Roles:- These are regarded as a set of connected bahaviours, rights, obligations, beliefs and norms as expected of an individual or thing Olayinka (2000).
b. Investment:- This has different meanings in finance and economists. In economics, investment is regarded as the accumulation of new machines, houses, goods and inventories. In case of finance, investment is defined as putting money into an asset with the expectation of capital appreciation, dividends, and low interest earnings.
c. Promotion:- This is one of the market mix elements or features, and a term used frequently in marketing. It involves the specification of five promotional plans.
d. Industrialization:- This simply refers to the process whereby the entire citizenry is involved in one form of industrial practice or the other to enhance economic growth.
1.10 HISTORICAL BACKGROUND OF AKWA IBOM INVESTMENT AND INDUSTRIAL PROMOTION COUNCIL (AKIIPOC)
Akwa Ibom Investment and Industrial Promotion Council (AKIIPOC) is located at N0. 143 Olushegun Obasanjo Way, Uyo.
The organization (AKIIPOC) is a statutory body established by law by the AKS government. The Council was established in 2001 and is a corporate body with perpetual succession and has a common seal used in its corporate name. It has 40 staff made up of Junior and Senior staff. The council is permitted to own and dispose off property. Its mission is to create prosperity for Akwa Ibom people and communities by developing infrastructure and process that will support the responsibility or its natural endowment for growth and sustainable development.
AKIIPOC, in terms of membership, consists of a part time chairman and at least one part-time council. It also consists of ex-officio members as follows:-
i. The director general of the Council
ii. The Commissioner responsible for Commerce or his representative
iii. A representative of the Nigeria Chamber of Commerce and Industry.
The chairman and members of the Council are appointed by the Governor from persons who have experience and show capability in industrial matters or administration subject to confirmation by a resolution of the House of Assembly.
Before a person becomes a member of the council, the Governor satisfies himself that the person has no financial or other interest that is likely to affect or become prejudicial to the discharge of its functions under the law governing it.
AKIIPOC acts as a catalyst by advising the state government on issues concerning investment and industrial development.
Its terms of reference include:
a. To determine and advise on policies that will best promote the accelerated industrialization and multi sectoral investment to diversify the economy and enhance the state’s productive capacity.
b. To provide policy advice on industrial, agricultural, commercial, oil and gas, transportation, housing, utilities, manpower and other aspects of the state’s economy. The council initiates and implements policies that attract investment and capital mobilization.
c. AKIIPOC Liaises with other states, federal and international organizations to enhance economic development. The council informs the Government immediately where National and state investment, related policies are seriously hampered or violated.
d. AKIIPOC submits to the Government quarterly reports of its activities and performs any other functions that may be assigned to it from time to time by the Governor.
e. AKIIPOC articulates, and supervises the reactivation of industries and business concerns in which government has shares or interest..