Industrial Sector: THE DREAM THAT NEVER FULLY ARRIVED

By Dorothy Akpan (Real Sector Correspondent)

Nigeria has repeatedly attempted industrialisation. The First National Development Plan emphasised industrial development and even contemplated an integrated iron-and-steel complex.

Later governments pursued Ajaokuta, steel plants, petrochemicals, fertiliser plants, cement, vehicle assembly, textiles and other industries.

The indigenisation decrees of 1972 and 1977 attempted to increase Nigerian ownership of businesses. But industrialisation was undermined by: unreliable electricity; poor transport; policy instability; foreign-exchange shortages; inconsistent taxation; smuggling;
weak domestic supply chains; corruption;
inadequate technical skills; and excessive dependence on imported machinery and inputs.

The manufacturing sector therefore never achieved the transformative scale expected of a country of Nigeria's size. The answer is not simply to protect local companies indefinitely. Nigeria needs competitive industrial policy which targets incentives tied to measurable production, employment, exports, local content and technology transfer.