Don lists ways to boost economic, Industrial growth in Nigeria

The Senior Special Adviser on Industrialisation to the President of the African Development Bank (AfDB), Prof. Oyebanji Oyelaran-Oyeyinka, has made suggestions that will spark industrial growth in the country.

Speaking at a public lecture organised by the Nigeria Society of Chemical Engineers to celebrate the 93rd birthday of  Anthony Shobo, Oyelaran-Oyeyinka, he explained that there was a need for the government to support local companies and create an environment that would make them efficient and competitive.

In the lecture, held virtually and entitled: ‘Why Nigeria’s development lags: Causes and consequences of premature deindustrialisation,’ Oyelaran-Oyeyinka advised that investment in capabilities at the factory level should be prioritised.

He added that the concept of de-industrialisation was broadly defined by two metrics; a falling employment in manufacturing as a share of total employment, and the process of de-industrialisation, which is associated with decline in the share of manufacturing value added in Gross Domestic Product (GDP).”

“Efficient production and innovation in the context of latecomer countries like Nigeria means satisfying domestic demand, thus reducing imports, developing the capabilities for changes to processes and products that are incremental that may not necessarily be frontier type activities.

“The food and agribusiness sector in Africa, is expected to reach $1 trillion by 2030. The sector is particularly important for Africa possessing 65 per cent of all uncultivable arable land in the world. The continent has the potential to feed itself and export value-added food products to the world; it needs to intensify investment in food processing and logistics.  Therefore, government need to support local companies and create an environment that makes them efficient and competitive,” he added.

To promote manufacturing export capabilities as a source of growth, Nigeria should move away from resource-dependence, build capabilities for economic and industrial diversification, clustering and agglomeration as industrial policy instrument.
“One of the most effective strategies for rapid economic growth is the accumulation of export capability to drive sustained exports of manufactures leading to foreign exchange earnings. African countries have long short-changed themselves by exporting raw materials that others use as basis for wealth generation.

Unlike the experiences of the advanced industrial countries, he noted that mineral-rich African countries have failed to industrialise.
Noting that natural resource abundance is not by itself a curse or blessing; Oyelaran-Oyeyinka said the nature of policies and the institutional context within which a country operates, determine the development trajectory and outcome.

“My emphasis is on the need to strategically promote the rebuilding of industrial technological capabilities for manufacturing, both for domestic market to reduce imports and for manufactured exports, invest more in infrastructure and institutions that foster ease of doing business.”

He appreciated Pa Sobo, whom he met 45 years ago during his brief stint at Lever Brothers.

“He played a pivotal role in my early career. Although he didn’t know me personally, he insisted on my recruitment because I had graduated with first-class honors and received the Lever Brothers Prize as the top Chemical

Engineering student from the University of Ife. Today, I am here to express my gratitude to him,” he stated.