(Buari), to mention a few. This was probably because they were one-man owned business. The proprietors were the founders, the financiers, and the Chief Executives of these industries who held the lion share and the executive control. The moment these people die, the subsequent take over of the industries by their relatives were short lived. Following the death of the proprietor, is the issue of poor or wrongful locations and poor marketing networks. About 12% of our respondents also ranked this first. In the same vein, 13.8% of the collapsed industries are found to be in this category. For example, the cases of Oro Bicycle (Oro), Olarinoye watch Industry (Ijomu-Oro), and Buari Watch (Buari) are prominent examples. The location of the first two industries in Oro area (rural communities in the hinterland) and their subsequent raw material sourced from abroad and marketing location at Lagos could be seen as very poor. Indeed, this probably led to huge overhead costs, as well as loss of sales. The same could be said of Buari Watch Industry, located in a remote area in Kwara State, but having its market, exclusively, in Lagos.
Following closely, insufficient capital is another major cause of collapse of industries. This was also ranked as a major problem by about 10% of our respondents. About 12% of the collapsed industries are found in this category. Most of these industries were funded through private capitals, bank loans, and some other piecemeal funding strategies. This could probably not be circulated efficiently, thus leading to huge overhead costs, low purchase of raw materials, and in-ability to pay staff salaries effectively. Notable among those affected by this factor are Associated Match Industries (Ilorin), Bisi foam Nigeria Limited (Ilorin), Cincere Industry (Ilorin), Atiba Sawmill (Esie) and Tate and Lye (Ilorin), among others.
The other factors that led to the demise of the industries in the state includes technical problems (12%), that were experienced due to the fact that most of the technical partners were sourced from abroad and individual industries were unable to meet the financial terms. This affected, mainly, Oro Bicycle industry (Oro), Buhari Watch Industry (Buhari), Dab Textile Ltd (Iddo-Oro), De-Johnson Nig. Limited (Ilorin), Olalomi Industry (Offa), and Union Steel Limited (Ajase-Ipo).
The economic recession accounts for about 9.4% of the industries. This affected almost all the demised industries. Similarly, inadequate raw materials accounts for 7.7% of the industries, while unfavourable Government policies in the 80’s accounts for 6.3%. Such policies include the issue of import licence, huge excise tax weight, and uncontrolled importation at the expense of the local industries. High overhead costs, as in the cases with Nigerian Paper Mill (Jebba), Nigerian Sugar Company (Bacita), Abiola Pepsi Bottling Company (Ilorin), accounts for about 2.3% failure rate.