Industrial Policies after Industrial Policies, but Why Still No Industrialization in Nigeria?

Abstract

Since independence in 1960, Nigeria’s economic trajectory has been defined by a frustrating paradox: the implementation of ambitious industrial policies juxtaposed against a stubbornly weak manufacturing sector. From the post-independence optimism of the Import Substitution Strategy in the 1960s and 70s to the comprehensive Structural Adjustment Programme of the 1980s, culminating in the modern, trillion-dollar ambitions of the 2025-2035 Nigeria Industrial Policy plans, each successive government has placed emphasis on industrial transformation and manufacturing growth. Yet, the manufacturing sector has remained sluggish, contributing less than 10 per cent of the Gross Domestic Product. The sector has been characterized by high geographical concentration, high production cost, low value-added, serious underutilization of capacity, and high import content. The country’s failure to industrialize with ambitious industrial plans by successive administrations is attributed to various problems including policy inconsistency, infrastructural deficits, “resource curse”, financial chasm, institutional disconnects, and corruption. Hence, policymakers must implement policies that will address these challenges for industrial policies to achieve industrialization in Nigeria. These policies will include ensuring transparency in contract awards and credit disbursement, provision of infrastructural facilities, restructuring and recapitalization of the development banks, and increasing the manufacturing sector’s access to credit.