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Introduction

Technical change arises through an evolutionary process or by revolutionary breakthroughs. Although the innovation may be small, the development of a technological base through incremental technical knowledge "can further refurbish the pace of technical process" (Lall 1982, p. 82).

What is important in the small-scale enterprises is the acquisition of technological know-how that can generate changes in the process of diffusion, imitation, and adaptation. The acquisition of knowledge in the informal sector can be brought about in Nigeria with the assistance of public institutions. Indeed, institutions like IDCs can "play a pump-priming role and assume primary responsibility for...managing techno-economic and techno-management services and facilities for small-scale enterprises" (Oguntoye 1974, p. 2).

The major requirements of the small-scale entrepreneurs are twofold: (1) push and incentive from the government, through bodies such as the IDCs; and (2) the capability to translate the inputs (technical knowledge) into reality and thus improve the quantity and quality of products for the market.

The IDCs established by the federal government of Nigeria operate within the framework outlined in the government's industrial policy guidelines. The third and fourth national development plans stressed the role of the metal-working sector as pertinent to the overall pace of industrial development and technical change in Nigeria. The planners hoped that promoting small-scale enterprises would generate substantial employment opportunities for thousands of unemployed youths, stimulate indigenous entrepreneurship, and mobilize local resources, capital, and skill. The major focus was the development of technological capacity in indigenous entrepreneurship. The government was aware of the inadequacies of the small-scale industrial sector, which include a paucity of technical know-how, a shortage of managerial ability, and inadequate linkages among entrepreneurs. This is why the sector was to be given a "credit scheme and infrastructural facilities and incentives" (Federal Republic of Nigeria 1981 p. 170).

Since the early 1970s the government has emphasized its interest in the development of small-scale industries and, indeed, has believed that it can act as the springboard to industrialization. The government's policy has been to create opportunities for local industries. The expansion of employment has immense advantages, not only for unemployed graduates, but also for rural dwellers.

Several agencies help with the promotion of the small-scale industries: the federal Ministry of Trade and Industry, the state ministries, and the IDCs at Zaria, Owerri, and Oshogbo.

This article examines the institutional efforts to help the small-scale metal-working sector accumulate technological capability and identifies the strategies the IDCs use to improve the technological capability of the small-scale entrepreneurs.

A history of the industrial development centres

The experts recommended establishing three IDCs: at Zaria (established in 1969), to serve the north; at Owerri (established in 1965), to serve the east; and at Oshogbo (established in 1976), to serve the west. Initially, these centres were to be used for demonstration, training, and seminars. Entrepreneurs were expected to learn about new production techniques, new types of machinery, record keeping, and small-scale business management. The IDC at Owerri enjoyed immense assistance from the Ford Foundation, and the one at Zaria had assistance from China. The aid to the IDC at Oshogbo came from UNIDO. Initially, it was thought that these centres would be sufficient, but more were needed, so additional centres were established in 1978. These were at Maiduguri, Benin City, Uyo, Sokoto, and Abeokuta. By 1981, there were also centres at Bauchi, Akure, Kano, Ilorin, and Port Harcourt. It must be stressed, however, that only the oldest three — at Zaria, Owerri, and Oshogbo — have been very effective.

Organization and functions of the industrial development centres

The IDCs at Zaria, Owerri, and Oshogbo have assisted in the promotion and development of small industries in many states. They cooperate with the state governments in the granting of loans and supervision of projects for the entrepreneurs. The small-scale industrialists apply for loans through the state ministries of trade and industry. These in turn forward the applications to the IDC for evaluation and appraisal.

The staff at the Ministry of Trade and Industry works with the staff at the centre to identify and assess the project. In the evaluation of a project, the following factors are considered:

• a feasibility study, considering the industrial potential of the project;
• the future markets for the product;
• the management expertise of the proprietor;
• the labour force; and
• the likelihood of that the owner would be able to carry on if faced with inadequacy of capital or unavailability of raw materials.

The IDCs have three major operational drawbacks: (1) They are organized as integral parts of a government department. Because the rules that govern the ministry also apply to them, requests have to be processed using bureaucratic procedures, and, therefore, delays are inevitable. This limits flexibility and the freedom required for successful operations. (2) They lack inadequate equipment, such as machinery and vehicles. (3) They lack competent technical staff.

Methodology

Assistance to the metal-working sector

Table 1 shows the nature of the services provided by the IDCs and the levels of satisfaction expressed by 24 proprietors of fabrication workshops in the metal-working sector. Most of the entrepreneurs were satisfied or very satisfied with the government's provision of management services and training. The metal-working entrepreneurs were less satisfied, though, with the IDCs' technical services. For instance, almost 80% of the sample expressed dissatisfaction with the technical advice to improve the design and quality of products, which implies something about the nature of the technical services provided and the technical change introduced by the IDCs.

Table 1. Quality of management and technical services provided by industrial development centres as perceived by 24 proprietors of fabrication workshops in the metal-working industry.
	VS		S		NS
	%	n	%	n	%	n
Management division
Training of proprietors in modern management	29.2	7	45.8	11	25.0	6
Guidance and advice in the workshop for better planning and organization to improve productivity and reduce costs	25.0	6	54.2	13	20.8	5
Marketing course in pricing, sales strategy, and marketing methods	41.7	10	41.7	10	16.7	4
Help with record keeping	33.3	8	50.0	12	16.7	4
Help with work simplification	41.7	10	37.5	9	20.8	5
Technical services division
Technical advice on selection of management	25.0	6	50.0	12	25.0	6
On-the-job training of artisans	12.5	3	29.2	7	58.3	14
Undertaking of repairs and maintenance of machinery at centre workshop	16.7	4	16.7	4	66.7	16
Advice and assistance to solve operational problems in the workshop	33.3	8	16.7	4	50.0	12
Advice to improve design and quality of products	12.5	3	8.3	2	79.2	19
Source: Field research work based on the study of 24 enterprises in Benue State. Notes: VS, very satisfactory; S, satisfactory; NS, not satisfactory.

The technomanagerial competence acquired by the metal-working sector is the most important issue. Although management services are important, the indigenous small-scale industries require technical knowledge. Evidently, a rethinking of policy by government is required to begin to strengthen the technical competence of the entrepreneurs in the fabrication subsector.

Some efforts were made by the IDCs and the Ministry of Trade and Industry to assist in the sheet-metal industry, which manufactures metal boxes, stoves, and water tanks. Many of the respondents indicated that government assistance in the area of management service was satisfactory. However, like the fabricators, the sheet-metal entrepreneurs indicated that the technical services provided by the IDCs were unimpressive. The quality of the training offered appears more satisfactory: 61.5% of the respondents were satisfied with this service. Although the management and consultancy services may be an important prerequisite for the expansion of technological capability, the respondents' dissatisfaction with technical services suggests that the IDCs and the ministry emphasized management at the expense of technical knowledge, which the entrepreneurs require more than anything else.

The neglect of technical services may be attributed to the fact that technical staff were in short supply, as indicated by interviews conducted with the staff of the metal division of the IDCs. The IDCs also complained about a lack of vehicles to convey their staff to the metal-working sites. The IDCs also lacked the finances to meet accommodation costs, which limits the time IDC staff can spend at the industry workshops. Because of this, the proprietors often have to travel to the IDC office when they need technical services.

Financial assistance from the government

Table 2 lists the beneficiaries according to type of industry. The metal-working industry received 20.6% of the loans, which is quite high. Between 1977 and 1985, metal workers were busy, and many applied for loans. The high proportion of funds allocated to metal working can also be attributed to the proximity of the Igbo states, Anambra and Imo (the Igbos dominate this trade). We found out, however, that the government officials were reluctant to aid proprietors who were not Benue State indigenes; political interests seemed to have determined who could get the loans.

Table 2. Government loans to proprietors by type of industrial activity in Benue State.
Type of project supported	Borrowers (n)	Amount (NGN)
Printing Shoemaking Poultry Laundry Bakery Gari processing Sawmilling Automobile parts Block making Piggery Rice milling Knitting Garments Electrical works Popcorn Photocopying Weaving Leather works Tailoring Automobile servicing Coffee milling Metal work Stone crushing Wood turning Yam flour Soap making Total	8 4 24 3 21 9 6 8 20 2 9 2 4 2 4 1 5 5 3 5 2 40 2 1 1 2	113 000 36 400 215 420 20 000 101 760 39 000 166 000 22 845 256 000 41 176 46 473 7 000 24 490 15 856 14 222 8 000 27 403 27 000 12 000 128 000 11 000 358 082 72 782 700 1 200 8 000
Total	194	1 783 809
Sources: Proprietors; staff of IDC Zaria; Ministry of Trade and Industry, Makurdi, Small-Scale Industry Credit Scheme annual reports. Note: In 1995, 78.5 Nigerian naira (NGN) = 1 United States dollar (USD).

The effectiveness of the Benue State ministries and the industrial development centres

Federal ministries of Trade and Industry and Science and Technology

Benue State Ministry of Trade and Industry

Industrial officers should involve themselves more with the proprietors, particularly in the area of management skills, but some officials at the ministry had a lukewarm attitude because (they argued) nonindigenes dominate the metal-working industry. This argument, however, has little basis: the investigation showed that the indigenes are not predisposed to this line of business, and regardless of where the proprietors come from, their activities in the industry contribute to the development of the state.

Furthermore, the contribution of the state ministry is hampered by scarcity of funds. But very often, even when funds are available, the state diverts these to other needs. This is most likely tied to the low level of commitment of the officials to the small-scale industrial sector.

The industrial development centres

The appraisal of the IDC technical assistance to the metal-working industry must take into account the technical background of the proprietors. The government designed a healthy policy for the small-scale industries, but as a major policy instrument, the IDCs have inadequate technical staff and equipment to provide the services needed by the proprietors in their workshops.

A cursory examination of the IDCs' technical advice for selecting a manufacturing process, undertaking repairs, and improving operations reveals their inadequacy. The successful improvement of a design or introduction of an incremental innovation in any workshop depends on the proprietor's ingenuity, but the IDC, as a government organization, must step in when required to support the process. The results of our findings indicated that the IDC officials' level of motivation was not high enough. The reason, in part, for the low level of commitment and productivity of the IDC staff is excessive government control through bureaucratic processes. As a civil service instrument, the IDC is, thus, unable to perform its role effectively.

Conclusion

The inability of the IDCs to adequately promote the small-scale entrepreneurial activities required for creative technical change and innovation in the process of production further limits the capacity of the industry. This is because indigenous technological development cannot be generated simply by wholesale importation of foreign technology. Technical change has to do with the creation of the skills needed to innovate. The IDCs appear to lack the capacity to effect deep changes in indigenous small-scale entrepreneurship. The implication is that the small-scale entrepreneur, who is a major player in technological development, may remain stymied without better state support.

References

• Federal Republic of Nigeria. 1981. Fourth National Development Plan, 1981–85. Federal Ministry of National Planning, Lagos, Nigeria.
• Lall, S. 1982. Developing countries as exporters of technology: A first look at the Indian experience. Macmillan, London, UK.
• Oguntoye, O.A. 1974. Tactical support for the development of small-scale industries in Nigeria. Presented at the Training Course for Government Officials on Small-Scale Industries Development, 19–27 Aug. 1974, University of Ife, Ife, Nigeria.
• Sen, A.K. 1976. Choice of techniques, Bladwell, 1968. Science and technology policy implementation in less developed countries. Methodological guidelines for the STPI project. International Development Research Centre, Ottawa, ON, Canada. IDRC 0676.

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