Dike Onwuamaeze
The Nigerian Economic Summit Group (NESG), has stated that industrial policy alone cannot achieve industrialisation of the Nigerian economy without a coordinated policy architecture that simultaneously addresses the foundational constraints limiting productive capacity within the domestic economy.
The NESG also stated that industrialisation should not be viewed merely as an expansion of manufacturing activity within an economy, but as a pathway to engendering employment, decent jobs and reducing poverty.
The NESG in a report said over the past several decades, Nigeria has pursued industrialisation as a central pillar of its economic transformation agenda as successive governments have introduced numerous industrial strategies to diversify the economy, expand domestic production, create jobs and reduce dependence on primary commodity exports.
However, it said that despite these sustained policy efforts, the country is short of the industrial transformation required to drive inclusive growth due to several constraints like poor infrastructure and access to finance.
According to NESG: “Industrial policy plays a critical role in unlocking productivity gains and accelerating structural transformation in developing economies. However, while industrial policy can be an important condition for industrialisation, it is not sufficient on its own.
“Its effectiveness depends on the presence of enabling structural fundamentals, including adequate infrastructure, human capital, access to finance, institutional quality, and technological capabilities, which support successful implementation.”
It added: “The persistence of these challenges suggests that industrialisation cannot be achieved through industrial policy alone. Rather, it requires a coordinated policy architecture that simultaneously addresses the foundational constraints limiting productive capacity while ensuring that industrial growth translates into broad-based improvements in living standards.
“Industrialisation should, therefore, be viewed not merely as an expansion of manufacturing activity, but as a pathway to creating productive employment, raising household incomes, reducing poverty, and strengthening economic resilience.”
The NESG warned that without a sustained commitment to industrialisation, a large share of Nigerians will remain trapped in the informal economy, which is characterised by low productivity and limited wage employment.
It said: “Without the creation of productive jobs at scale, the population of working poor will expand, while social pressures manifested in insecurity and heightened tensions could intensify.”