Nature And Scope Of Production Subcontracting In Nigeria

ABSTRACT This paper analyzes the nature and scope of production subcontracting linkages in Nigeria within the contemporary held views of integration and industrial linkages. Data were collected from the sixty-eight contracting firms among the 15 industrial estates/areas in the Lagos region. This paper shows that the dominant form of subcontracting is speciality subcontracting carried out by independent subcontractors. The various products of subcontracting between the Lagos region and the rest of Nigeria area discussed. Over fifty percent of the contractors engage the services of a maximum of two subcontractors. Whereas, production subcontracting accounted for more than thirty percent of the total costs of production in motor vehicles and miscellaneous assembly industry group, it accounted for about twenty percent in any of the other industry groups in each of the years under consideration. This paper also shows that production subcontracting, carried out over relatively short distance, became very important after the introduction of the Structural Adjustment Progamme (SPA) in Nigeria, while it is perceived as most useful in reducing the costs of production Kata Kunci.: nature - scope - undustrial - negeria - subcontractin