INTRODUCTION

Backward integration is what happens when one company acquires the business of the supplier of the raw materials required to produce the company’s goods and services. It is a form of vertical integration in which a company expands its role to carry out tasks that were previously done for that company by other entities up the supply chain, such as the supply of raw materials needed to produce the company’s goods and services.

This means that a food processing company, for instance, must produce or organize the supplies of major agricultural raw materials in a manner to ensure and guarantee the efficiency of input procurement, capacity utilization and overall output.^[1]

In this article we shall examine the prospects of backward integration in the manufacturing sector of the Nigerian economy.

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[1] lsmaila, Usman. Mallam (1991) “Backward integration and foreign exchange conservation,” Bullion: Vol.

15: No. 1, Article 3. Available at: https://dc.cbn.gov.ng/bullion/vol15/iss1/3