Abstract:
This paper is an assessment of ECOWAS Trade Liberalisation Scheme (ETLS) and Manufacturing Capacity Utilisation in Nigeria (2005 - 2015). The major objective of the study is to examine the impact of the scheme on manufacturing capacity utilisation in Nigeria, and to do this, the study hypothesized that the ECOWAS Trade Liberalisation Scheme (ETLS) has no significant impact on manufacturing capacity utilisation in Nigeria. Documentary analysis was the major source of data collection in which the researchers mainly relied on statistical data or tables supplied by the Central Bank of Nigeria. These statistical data or tables were subjected to further statistical analyses by the researchers using statistical tools called Error Correction Model (ECM) and Co-integration Tests. After data analyses, the findings revealed that the scheme has not made any significant impact on capacity utilisation in Nigeria. Consequently, the study recommended among others the need for government to improve physical infrastructure, create an agency called Border Defence and Management Agency (BODMA) to deal with issues of smuggling, as well as grant tax holidays, grants and subsidies to indigenous manufacturers, local scientists and entrepreneurs to encourage indigenous technological growth. These measures the researchers believe will help in no small measure to protect and promote the local industries.
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