Published: 31 January 2019 12:00
By Naji Makarem, Matthew Crighton, Tejiri Aweto, Rukevwe Aliogo and Iniobong Patrick Idobo
Nigeria has been striving to restructure and diversify its economy away from low-productivity agriculture and Oil & Gas since its independence in 1960, and continues to do so today. The country has adopted contrasting development models – from import substitution industrialisation strategies in the 1960s and ‘70s, to deregulation and liberalisation since the 2000s, with a hybrid model in-between – yet the manufacturing sector continues to lag both in terms of size and productivity.
Nigeria does however have several important factor endowments in its favour: its population of over 180 million and major urban centres offer local and foreign manufacturers access to a large home market, its agricultural and mining sectors offer primary inputs into manufacturing processes, over 200 higher education institutions and a large international diaspora have the potential of supplying industry with educated and skilled human capital and entrepreneurship, and revenues from Oil & Gas can offer the "leg-up" that poorer economies need to lay the foundations for economic development while offering social support.
This research report provides an economic analysis of Nigeria's national and urban/regional economies, and in-depth case studies of three regional industrial corridors with a focus on strategically selected tradable industries, the business climate, governance processes and business-civic leadership.