Industrialisation in Nigeria has been hindered by many problems. Below are the problems:
(i) Shortage of Skilled Manpower:
Highly skilled manpower needed for industrialisation is in short supply. This has also brought about reliance on foreign manpower as Nigeria still recruits its technicians from foreign countries. This is partly due to a high degree of illiteracy brought about by lack of educational opportunities.
(ii) Inadequate Capital:
During the period of oil boom in Nigeria, capital was not the problem. But since the fall in oil prices foreign earnings has slowed down industrialisation. Also low per capita income together with high propensity to consume, have adversely affected capital formation in Nigeria.
(iii) Political Instability:
Most of West African countries, especially Nigeria have experienced some political instability, that is, frequent changes of government which lead to changes in industrial policies and strategies. This creates an atmosphere of fear and insecurity, thereby, discouraging investment in industry.
(iv) Lack of Adequate Infrastructure:
The necessary infrastructure needed for industrial development, such as electricity, water supply, telecommunication, hospital, etc., is not adequate. The inadequacy of these basic facilities increases operating cost of industries which may lead to profit reduction.
(v) Shortage of Indigenous Personnel:
Shortage of indigenous personnel will affect the completion of feasibility studies as it is necessary to determine its viability before an industry is established. In Nigeria, such feasibility studies may be delayed or not carried out due to shortage of indigenous personnel and as a result, industries may fold up after a short period of operation.
(vi) Dishonesty and Corruption among Officials:
In Nigeria, cases of fraud and embezzlement of funds, uncompleted projects by corrupt officials are the major factors that affect industrial development. Projects are sometimes overcharged to the benefit of foreign experts and corrupt officials.