LOCAL CONTENT POLICY IN OIL SECTOR AND THE CAPACITY UTILIZATION IN NIGERIAN MANUFACTURING INDUSTRY

This paper investigated the consequences of local content policy in oil sector upon the capacity utilization in Nigerian manufacturing industry. The study used quasi-experimental research design approach and time series secondary data for the data analysis. The time series secondary data used for the study were tested for stationarity and co-integration and were processed by an E-view for windows econometric packages. The multiple regression results showed a significant and positive relationship between local content policies in oil sector and the capacity utilization in Nigerian manufacturing industry. The study confirms the effectiveness of local content policies in Nigeria. Our findings and conclusion suggested that for Nigerian economy to grow, proper implementation of local content policies in oil sector is a necessary concomitant as the policy has the potential to generate employment and increase value addition in the economy. In complement of the above government should see to the smooth running of the policy if only the goal of vision 2020 is to be achieved.