1.1 Introduction
Computerization is the process of converting manual operations into automated systems through the use of computers and related technologies, enabling tasks to be performed more efficiently, accurately, and at a faster pace (Laudon et al., 2022). in the modern business environment, computerization has become a key driver of productivity, operational efficiency, and competitiveness. It facilitates better data management, streamlines production processes, and supports decision-making through timely and accurate information. The Nigerian economy has been undergoing gradual transformation with the adoption of information and communication technology (ICT) in various industries, particularly manufacturing. As globalization intensifies competition, the ability of Nigerian firms to integrate computerization into their operations is critical to their survival and growth (Eze & Uzochukwu, 2021).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Historically, computerization and its impact on the growth of the Nigerian economy can be traced to the late 20th century when the country began embracing modern information and communication technology (ICT) to improve productivity and operational efficiency. According to Aina (2019), the introduction of computer systems into Nigerian industries began in the 1980s, primarily in the banking and telecommunications sectors, before gradually extending to manufacturing, education, and public administration. Initially, adoption was slow due to high costs, lack of skilled manpower, and inadequate infrastructural support, but the liberalization of the economy in the 1990s and the growth of the ICT market encouraged wider integration.
Oyelaran-Oyeyinka and Adeya (2004) reported that computerization became a significant economic driver in Nigeria during the early 2000s, following government policies aimed at promoting technological advancement. The establishment of the National Information Technology Development Agency (NITDA) in 2001 marked a turning point in the country’s ICT development, as it created a framework for guiding computerization efforts in both private and public sectors. in the manufacturing industry, this shift led to the gradual replacement of manual operations with automated systems, enabling better production management, and customer service.
Computerization has emerged as a transformative force in modern economic activities, reshaping the way organizations operate and compete in the global marketplace. According to Laudon and Laudon (2022), computerization involves the use of computer systems and software to automate, manage, and control business operations, thereby enhancing efficiency, accuracy, and decision-making. In developed nations, it has become an indispensable tool for boosting productivity and achieving sustainable growth, and its influence is increasingly being felt in developing economies like Nigeria.
The manufacturing sector, in particular, has experienced significant changes due to technological advancement. Eze and Uzochukwu (2021) reported that Nigerian manufacturing firms adopting computerized systems have recorded improvements in operational speed, product quality, and market competitiveness. These improvements not only enhance the individual performance of companies but also contribute positively to national economic growth. Similarly, Oladipo and Yusuf (2020) asserted that effective computerization fosters innovation, reduces production costs, and enables better integration into the global value chain. However, the adoption and utilization of computerization in Nigeria are often hampered by several challenges. Adebayo (2021) stated that infrastructural limitations such as poor electricity supply, high cost of ICT facilities, and inadequate technical know-how remain major obstacles to fully realizing the benefits of computerization. in the same vein, Musa (2020) affirmed that resistance to change, poor maintenance culture, and lack of continuous staff training undermine the sustainability of computerized systems in Nigerian firms.
from an economic perspective, Ojo and Akinyemi (2019) contend that the effective integration of computerization in industries has the potential to stimulate job creation, improve industrial output, and enhance the country’s Gross Domestic Product (GDP). For companies like Solive Oil Manufacturing Company Nigeria Limited, computerization offers the opportunity to optimize production processes, improve quality control, and strengthen customer relations, all of which are crucial for long-term competitiveness and growth. This study is set against the backdrop of examining how computerization impacts the growth of the Nigerian economy, with a particular focus on its application, benefits, and challenges in Solive Oil Manufacturing Company Nigeria Limited.
1.3 Statement of Problems
Investigation revealed that the rapid evolution of computer technology is transforming the way businesses operate globally, and Nigeria is not exempt from this trend. In today’s competitive environment, computerization is no longer viewed as a luxury but as a necessity for operational efficiency, accuracy, and strategic decision-making. The absence of a fully computerized system in certain areas of operations is resulting in delays, data inaccuracies, and reduced competitiveness in both domestic and international markets. On the other hand, while computerization is expected to enhance productivity, improve resource management, and foster economic growth, some organizations face resistance to change among employees, leading to underutilization of available technological tools.
Furthermore, Nigeria’s unstable power supply, fluctuating economic policies, and limited access to quality Information Communication Technology (ICT) infrastructure are compounding the problem, making it difficult for firms to achieve optimal results from computerization. It is against this backdrop that this study seeks to examine the impact of computerization on the growth of the Nigerian economy.
1.4 Aim and Objectives of Study
The aim of this study is to evaluate the impact of computerization on the growth of the Nigerian economy, with a specific focus on Solive Oil Manufacturing Company Nigeria Limited. In achieving this aim, the following specific objectives were laid out as follows:
- To examine the extent to which computerization has been adopted in Solive Oil Manufacturing Company Nigeria Limited.
- To assess the effect of computerization on operational efficiency and productivity in the company.
- To identify the challenges hindering effective computerization in the organization.
- To determine the relationship between computerization and the company’s contribution to Nigeria’s economic growth.
1.5 Research Questions
Based on the stated objectives, the research will address the following questions:
- To what extent has computerization been adopted in Solive Oil Manufacturing Company Nigeria Limited?
- How has computerization affected operational efficiency and productivity in the company?
- What challenges hinder the effective implementation of computerization in the organization?
- What is the relationship between computerization and the company’s contribution to the Nigerian economy?
1.6 Research Hypotheses
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between computerization and the growth of the Nigerian economy as reflected in the operations of Solive Oil Manufacturing Company Nigeria Limited.
- H1: There is a significant relationship between computerization and the growth of the Nigerian economy as reflected in the operations of Solive Oil Manufacturing Company Nigeria Limited.
Hypothesis Two
- H0: Computerization has not been significantly adopted in Solive Oil Manufacturing Company Nigeria Limited
- H1: Computerization has been significantly adopted in Solive Oil Manufacturing Company Nigeria Limited
1.7 Significance of Study
It is believed that at the completion of the study, the findings will provide valuable insights into the role of computerization in enhancing economic growth through improved efficiency and productivity in the manufacturing sector. The study will also serve as a useful reference for policymakers, company management, and other stakeholders seeking to promote technological advancement in Nigeria.
Furthermore, it will contribute to academic literature on ICT adoption and industrial development, providing a foundation for future research. In addition, the reseaarch study will show how computerization will enhance profitability and long-term sustainability of manufacturing ventures.
Lastly, the study will provide a relevant case study for further exploration into the relationship between technology adoption and economic growth.
1.9 Scope and Limitations of the Study
This study covers Solive Oil Manufacturing Company Nigeria Limited in Lagos State, Nigeria. It focuses on the adoption and impact of computerization on operational efficiency, productivity, and economic contribution.
The research study is limited by factors such as the availability of data from the company, time constraints for data collection, and reliance on staff willingness to provide accurate information. Financial resources available for the research also restrict the depth of the investigation, and the findings may not be fully generalizable to other manufacturing firms in Nigeria.
1.10 Definition of Terms
Computerization:
Computerization refers to the process of converting manual operations into automated processes using computer systems and software to improve efficiency, accuracy, and speed (Laudon & Laudon, 2022).
Operational Efficiency:
Operational efficiency is the ability of an organization to deliver products or services in the most cost-effective manner without compromising quality (Eze et al., 2021).
Economic Growth:
Economic growth is the sustained increase in the productive capacity of an economy, often measured by the rise in Gross Domestic Product (GDP) over time (Todaro & Smith, 2020).
Manufacturing Sector:
The manufacturing sector refers to industries involved in the transformation of raw materials into finished products through the use of labor, machinery, and technology (UNIDO, 2019).
ICT (Information and Communication Technology):
ICT refers to the integration of telecommunications, computing, and technology systems for accessing, storing, transmitting, and manipulating data (Oladipo & Yusuf, 2020).
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