By Merit Ibe
Sixty-five years after independence, Nigeria, touted as the giant of Africa, is still struggling to industrialise.
Despite being blessed with an enormous population, significant economic size and vast oil and natural resources, the country is still struggling to build a strong industrial base that can drive sustainable growth and create jobs.
The manufacturing sector’s contribution to the economy remains weak, raising concerns about the country’s readiness to compete globally.
With abundant natural resources, the country possesses the fundamentals needed to industrialise, but corruption, inequality, nepotism and other issues have remained the barricade to industrialisation.
Other issues that have truncated the industrialisation journey unreliable power supply, poor infrastructure and heavy dependence on crude oil receipts.
Instead of developing strong value added industries, Nigeria continues to rely on imports for manufactured goods, leaving its local industries struggling to survive. This mismatch between abundant resources and limited industrial output has deepened unemployment, widened poverty, and weakened economic resilience.
Over the years, successive governments have introduced industrial policies and development plans, but implementation gaps, policy inconsistencies and governance challenges have slowed progress. As a result, Nigeria remains stuck at a slow pace of industrialization, far behind emerging economies that began their journeys around the same time. The urgent task before the country is to overcome these barriers and chart a clear, consistent path toward building a robust industrial base that can support inclusive growth and long-term prosperity.
Some stakeholders believe that Nigeria is still a developing country with aspirations toward industrialisation but has not achieved the level of economic diversification, technological advancement, and manufacturing strength that defines an industrialised nation.
Nigeria still possesses qualities of a non developed nation which include low contribution of manufacturing to GDP; overdependence on oil; weak manufacturing sector; high import dependence; limited value addition; infrastructure challenges; high unemployment and poverty rate.
For quick industrialisation, Nigeria needs to diversify the economy; develop infrastructure; encourage local manufacturing; add value to raw materials; invest in technology and innovation; improve human capital; create a friendly business environment; strengthen trade policies; public-private partnership; stable policies and governance – Long-term industrial policies should not change with every administration.
The Manufacturers Association of Nigeria (MAN) emphasised that industrialisation requires strong collaboration between government and the private sector.
President of MAN, Francis Meshioye, said Nigeria is yet to attain the status of an industrialised nation.
He disclosed that the Ministry of industry, trade and investment is working hard with manufacturers, the private sector and MDAs as Nigeria Industrial Revolution Working Group to look at the challenges and the way forward.
“We have not achieved industrialisation, but we are trying. The Ministry of Industry, Trade and Investment is working hard with manufacturers and MDAs. The key is consistent implementation of policies.”
He said with Nigeria’s industrial policies being discussed, “we are confident that Nigeria Industrial Revolution is on the path of achievement.
“So, with this process, we believe that implementation will be easier than in the past.”
While stakeholders across sectors agree that Nigeria has not achieved industrialisation, other experts stress the need for deliberate incentives for industries, revival of the steel sector, and protection of local businesses from unfair competition. Tackling insecurity and corruption is equally critical to attracting foreign and local investment.
Experts insist that industrialisation is not optional, but the only path to sustainable growth, poverty reduction, and national dignity.
In 1960, when Nigeria gained independence, the nation was full of optimism. With its rich endowment of oil, agriculture, and human resources, many believed that industrialisation was only a matter of time. In fact, in the early 1960s, Nigeria’s industrial trajectory was often compared with South Korea’s, and the Nigerian economy was ahead of China’s in some respects.
Back then, the Lagos-Ibadan expressway, completed in the late 1970s, stood as a symbol of progress. At that same time, China had not yet built an expressway. Today, China boasts of an extensive Silk Road infrastructure, massive rail networks, and world-class industrial cities, while Nigeria’s roads are riddled with potholes and unfinished projects, David Etim, Project Implementation Team Leader of the Calabar and Gulf of Guinea Municipal and Trade Centre Limited By Guarantee recounted.
Etim regrets that Nigeria is not an industrialised nation yet. “We are aspiring to become industrialised, but unfortunately, we are still far behind. At one time, our economy was comparable to South Korea’s, but today, we look to them for aid and guidance.
Nigeria has the potential to reinvent itself.
“The Africa Continental Free Trade Area Agreement (AfCFTA), gives Nigeria a fresh new opportunity to reinvent itself.
The shift in the world trade order where the actions of Donald Trump has basically thrown multilateralism to the wind, where it is now every man for himself and God for us all, in my opinion, I think this is an opportunity.
“Nigeria’s struggles become clearer when compared to Asia. South Korea, which was at Nigeria’s level in the 1960s, deliberately invested in industrial clusters, technology, and education. Today, companies like Samsung, LG, and Hyundai dominate global markets.
“China’s story is even more striking. In the late 1970s, China had no expressways and limited industrial base. But through deliberate government-led reforms, creation of free trade zones, and massive infrastructure investment, it transformed into the “world’s factory.” Chinese engineers built indigenous solutions, using coal, wind, and other resources to power their industrialisation.
“In China, entire villages became free trade zones for specific industries, textiles, electronics, mining. That focus transformed communities into global hubs. Nigeria can learn from that model.
“The present administration has shown some signs of seriousness. President Bola Tinubu’s engagements with Brazil, India, and the Middle East signal a renewed focus on bilateral trade and industrial cooperation.
“The government is also pushing AfCFTA and developing free trade zones as industrial clusters. Tax reforms, fuel subsidy removal, and exchange rate unification, though painful, are part of efforts to reset the economy.
To connect those policies, Etim pointed out that a key strategic component of rapid industrialisation is the development of free trade zones, because free trade zones are microcosms of nation states that are purpose specific to industrialisation. That is how China industrialised.
Dangote’s bold claim that Nigeria could eliminate unemployment in five years through proper industrialisation is not mere wishful thinking; it is a challenge to act.
“If we have our industries running, if we are producing, if we are farming, if we are feeding ourselves adequately, cheaply, personally, I believe that Nigeria’s issue should not be an issue of minimum wage but of a living wage and with a living wage, then we have high production which would then rapidly reverse inflation.
“We just lack the political will even if the policies are in place, it’s the political will to enforce it.
The biggest problem of Nigeria is the public sector, the inefficiency of the public sector that’s the biggest problem in Nigeria today and if Nigeria needs to industrialise the public sector needs to understand its role in that industrialisation.”
For Daniel Dickson-Okezie, a member of the Lagos chamber of commerce and industry (LCCI) and an SMEs expert, Nigeria cannot be termed as an industrialised nation.
He said an industrialised nation is basically a nation that has transformed from an agric or resource-based economy.
“You know, in an industrialised nation, there’s greater average income and improved standard of living.
“So again, industrialisation is driven by government policy, labor-saving inventions, entrepreneurial ambitions and demand for goods and services. So from what we’ve seen so far, Nigeria is lagging behind.
Dickson-Okezie, explains: “An industrialised nation is one that has transformed from a resource-based economy. In such nations, you see higher income, better jobs, and improved living standards. Nigeria is still lagging behind.
“Nigeria ought to be a highly industrialised nation today, even higher than the so-called Asian Tigers, yes.
“But the fact remains that we’ve missed it somewhere along the line.
“So now, the question is, why have we not become industrialised? The reasons are just very clear. Policy somersault has been the bane in the area of industrialisation, poor infrastructure, hydra-headed problem of corruption, political instability, and more recently, insecurity.
“Our problem of tribalism and nepotism, lack of adequate incentives to businesses and failure to develop our steel industry have been a major bane of the industrialisation of Nigeria.
Other limitations have been over-reliance on oil over the years.
“Now what we need to do to change this story so that Nigeria will join the league of industrialised nations are: we must have a deliberate policy, which has to come from the government.
“You know, it was government policy changes in the late 20th century that led to what China’s is known for today. It has to be driven by the government.
“Nigeria is no stranger to industrial policies. Over the decades, successive governments launched initiatives such as Vision 2010, the National Economic Empowerment and Development Strategy (NEEDS), the Nigeria Industrial Revolution Plan (NIRP) and the Economic Recovery and Growth Plan (ERGP).
“While these policies often looked impressive on paper, implementation was weak. Policy somersaults, where new governments abandon the policies of their predecessors, eroded investor confidence. Governance failures, corruption, and insecurity compounded the problem.
“Instead of building a stable foundation for industrial growth, Nigeria has been stuck in cycles of reforms, reversals, and half-measures. We need to improve our infrastructure.
“Another major problem is lack of adequate incentives on the part of the government. They need to support industries, providing financial incentives and all that.
“In the late 70s, the late 70s, there appeared to be a deliberate policy to develop the steel sector. The rise of the steel industry was actually an area of hope, a major area of hope for the industrialisation of Nigeria. Without a vibrant steel sector you cannot develop any country. “Also at a point Nigeria over the years paid attention to oil, nobody paid attention to areas that can lead to the industrialisation of Nigeria. Nigeria is highly blessed with natural and non-natural resources.
“Some countries that don’t even have tourism sites and other tourism resources like Nigeria today have turned out to be great countries and their economies have been doing so well just because of tourism but we have refused to develop ours.”
For Ehimigbai Imokhai, member of the Manufacturers Association of Nigeria Export Group (MANEG), Nigeria is yet to be industrialised.
He lamented that “factories and warehouses built in the 80s and 90s have been taken over by churches. Textile mills like Asaba Textile and NTM are gone. Oil, which should have been a blessing, turned into a curse because of poor planning and bad leadership. Rather, the process of industrialisation is declining. Recall Dunlop and Guiness of old had rail lines constructed to their premises in Ikeja to convey manufactured products then. Visit Dunlop today, part of if the premises have been taken over by a church.
“Oil that was supposed to be a blessing to us but turned into a curse because of bad planning by our leaders and their profligate lifestyle”.
To improve on the current situation, Omokhia said the government should consider diversification from exporting raw agro products to finished or semi finished products. For example, instead of exporting raw cocoa beans, convert it into cocoa paste before export.
“Governments at all levels should consider seriously consuming made in Nigeria goods.Imagine if the several million dollars given to the National Assembly to purchase vehicles was taken to Innoson motors. Rather than assist smaller nations in Africa as big brother which Nigeria likes to do by giving out cash, we should demonstrate big brother by buying vehicles from Nigerian manufacturers, computers from Zinox and give out as gifts to smaller nations. Shoes made in Aba are taken to Dubai to be labelled made in UAE and re-exported to Nigeria.
“Yes, we fought a civil war for three years but did not take advantage of the Biafran technology in refining crude oil then to get petrol. Is it not shameful that Africa’s largest crude oil exporter does not have a functioning refinery? Is it not shameful that we did not take advantage of the biafran technology of how the ‘Obunigwe’ bomb was built? All because of our dirty politics.
“The government needs to be sincere in their policy implementations. EEG that is supposed to cushion the effect of high cost of manufacturing in Nigeria is not readily paid to beneficiaries.
“The government should improve the provision of infrastructure. Power is a major problem in Nigeria.
“Insecurity is also a very big problem which the government must consider”.
For the Centre for Promotion of Private Enterprise (CPPE), Nigeria’s economic journey over the past 65 years has been one of profound transformation, shaped by cycles of boom and bust, far-reaching reforms, recurring crises and enduring struggles with diversification.
Director General of the centre, Dr Muda Yusuf, viewed that as the nation marks 65 years of independence, reflecting on this trajectory is essential to chart a more sustainable, competitive, and inclusive path for the future.
“Nigeria’s population of an estimated 230 million is both a significant opportunity and a daunting challenge. Infrastructure, roads, power, housing, education, and healthcare, remain grossly inadequate, undermining productivity and competitiveness. Aggressive infrastructure investment, leveraging public private partnerships and innovative financing models, is no longer optional but an urgent necessity”, he said.
To sustain reform momentum, Yusuf preferred that these measures must be complemented by targeted social protection programs, cash transfers, food security interventions, and job creation initiatives, to shield vulnerable households and maintain public support.
He said Nigeria must focus on deepening economic diversification: Scaling up value addition in agriculture, manufacturing, and solid minerals.
Yusuf believes these reforms, if complemented by social protection and infrastructure investment, could lay the foundation for industrial revival. “The current reform agenda presents a rare opportunity to reset the economy on a path of stability, competitiveness, and shared prosperity.
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