By Helen Oji
To shield Nigeria’s economy from the adverse effects of external shocks, there is a pressing need for the government to begin a deliberate shift toward building a robust manufacturing base underpinned by strategic investments in infrastructure.

An economist, Dr Johnson Chukwu, while speaking at Nigeria’s economic scorecard yesterday, said that without a shift in economic structure, Nigeria would remain susceptible to external shocks such as fluctuating oil prices, global supply chain disruptions and geopolitical tensions that affect trade flows.

According to him, Nigeria’s current economic fundamentals are not well-insulated from such shocks because the country still relies heavily on raw material exports and imports a significant portion of its manufactured goods.

To reverse this trend, he advocated a renewed focus on industrialisation through deliberate investments in critical infrastructure such as power, transport and logistics to support a vibrant manufacturing sector. He acknowledged that the government may lack the financial capacity or technical depth to drive the transformation alone, especially given current fiscal constraints.

Considering the limitations, Chukwu proposed a public-private partnership (PPP) approach as a practical pathway, noting that through PPPs, the government can leverage private sector funding, innovation and efficiency to deliver infrastructure projects while also creating a regulatory environment that guarantees returns on investments.

He said that the government does not need to provide all the capital or forgo taxes entirely, but rather, it should focus on enabling policies that allow private investors to recover their investments over time.

He noted that such an approach would not only ease the fiscal burden on the government but also fast-track the development of the key infrastructure required for manufacturing to thrive.

Chukwu cited Vietnam as a compelling case study, noting that the country, which once lagged behind Nigeria in terms of economic development, has successfully repositioned itself as a leading manufacturing hub in Southeast Asia.

“Today, Vietnam enjoys a substantial trade surplus with the United States and continues to attract large volumes of foreign direct investment. That is where we should be in Nigeria. Vietnam was worse than Nigeria before, but they have built a huge manufacturing base that attracts investment into the country,” he said.

He argued that Nigeria has even more strategic advantages, such as a larger domestic market and proximity to Europe compared to Asian economies. Chukwu believes that if Nigeria can replicate Vietnam’s industrial strategy, it could emerge as a key player in global supply chains and significantly reduce its exposure to external shocks.

He stressed that Nigeria’s large and youthful population presents a unique demographic advantage which, if properly harnessed through manufacturing, could drive productivity, generate employment and enhance income levels across the country.

Industrialisation, he said, would not only diversify the economy but would also create the kind of economic stability that shields the country from volatile external influences.