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Promoting Industrialization In Nigeria -By Ugochukwu Anadị

To industrialize an economy is to develop industrial subsectors of a country or region on a wider scale. This implies the presence of mechanical and technical skills required for mass or large-scale production that brings about socio-economic changes in the society as against manual/unskilled human labour in an agrarian society. Industrialization as a phenomenon is central to national development (Yantumaki, 2009).

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Ugochukwu Anadị

Abstract

     Sixty-one years after getting her independence, Nigeria is still battling with a high rate of poverty and unemployment. The visions which the founding fathers had for the country – to be the leader and not the led, to be a giant and not a dwarf – seems at best, now, to be a utopian vision. Today, Nigeria is still regarded as a third-world country and may be found at the bottom rung of the development ladder.

     Currently, the industrial sector is in shambles. Business in Nigeria means one thing and one thing only, buy a good at $50 and sell at $100. The paper is aimed at looking into ways through which industrialization in the country can be promoted for as the paper argues, there is no progress without industrialization. The paper maintains that the industrial sector is a major driver of a nation’s economy and the economic vehicle of a nation cannot move in its absence. The data collected was derived from earlier documents on the topic, or related topics.

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    The paper takes a look at the policies that have so far been enacted to achieve this industrialization, from the Import Substitution Industrialization (ISI) policy to the Indigenization Policy, and contends that corruption amongst many other factors led to their failure. Thus, the paper believes that eradication of corruption, developing credible and appropriate development plans amidst many others are needed to promote industrialization in the country.

Keywords 

 Development, Economic Development, Industrialization, Industry, Promotion

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  1. Introduction     

     Asaju (2015) posited that industrialization is a sine-qua-non to the development of a country; the pillar without which a country crumbles and becomes one with the earth. That Nigeria, a country which fought and defeated colonialism in 1960 and has since pride itself as the Giant of Africa is still considered an underdeveloped country, or in some hopeful portrayals and labels, a developing country, shows that there is a crack, in what is supposed to be the pillar of the country’s development – industrialization.\

      When we moved from the problem of colonialism to that of development, our leaders realizing the centrality of industrialization to the development of the country developed different policies to help promote industrialization in the country. From the Import Substitution Industrialization (ISI) developed in 1962 to the Balanced Development Strategy through the Export Promotion Strategy to the Indigenization Policy, they have been no shortage of wonderful and promising policies geared towards the promotion of industrialization in the country. Yet, all had fallen short of achieving what they were designed to achieve. Nigeria is economically backward and imbalanced.

       This is no ordinary problem considering that Nigeria has the mineral resources advantage. There is no shortage of human resources in the country thus making this economic backwardness and imbalance an enigma. The potentiality latent in Nigeria can push the country to the apex seat in the continent of Africa and the round table of the World Powers, yet, even the Giant of Africa she bears is partly as a result of past glories and partly as a result of others’ recognition of this latent potentiality.

      This paper examines the trends in Nigerian industrialization policies, to identify what made each of them fail and to propose the things that must be done to make the country an industrialized one. Like Alan Turing, the paper breaks the enigma of what is leading to the economic backwardness and imbalance in the country and goes further to propose practical ways to salvage the situation.

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      The Kaduna Textiles Ltd, The Ajaokuta Steel Company Ltd (ASCOL), The Dunlop Nigeria Plc., and many others in their leagues may have disappeared or become historical monuments; companies situated in Nigeria may have either collapsed or the surviving ones relocated but there is still hope. And that hope is industrialization.

  • Conceptual Issues
  • Industrialization

        The term industrialization can be considered as the industry in motion, industry in action. There can be no industrialization without the word industry, therefore a conceptual understanding of the term industry is indispensable to the understanding of the term industrialization.

       In macroeconomics, an industry is a branch of an economy that produces a closely related set of raw materials, goods, or services (Wikipedia). In basic economies, industry relates to those economic activities which involve a transformation of inputs into new products (Asaju, 2015).

       Yantumaki (2009), quoted by Asaju (2015), defined industrialization as a process in which economic production gradually moves away from animate to an inanimate system. It is the process by which an economy is transformed from a primarily agricultural one to one based on the manufacturing of goods. Individual manual labour is often replaced by mechanized mass production and craftsmen are replaced by assembly lines. Simply put, industrialization is the sustained radical change from the state of rich consumers to the state of rich manufacturers.

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        To industrialize an economy is to develop industrial subsectors of a country or region on a wider scale. This implies the presence of mechanical and technical skills required for mass or large-scale production that brings about socio-economic changes in the society as against manual/unskilled human labour in an agrarian society. Industrialization as a phenomenon is central to national development (Yantumaki, 2009).

           It is important to note that the more industrialized a country is, the more it ascends the development ladder and positions itself as a world power. Industrialization is imperative to the economic growth of any given country.

  • Development

       The definition of development is an object of contention amongst scholars. This is because the term is multi-faceted and thus cannot be encompassed in one, two, or even three sentences. Rodney (1972) dedicated a whole chapter of his How Europe Underdeveloped Africa to defining the term. He divided the term into two levels: the individual level and that of the society.

         On a (societal) national level, development is gauged with the progress from a lower level to a higher level of the qualitative well-being of most citizens of a country. It means better overall well-being of the citizens: low unemployability rate, low mortality rate, availability and easy access to food and water, etc.

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         Development is not an automatic occurrence, it is not something that occurs at the flip of a button but a gradual, consistent process.

      Economic development, therefore, is a process of targeted activities and programmes that work to improve the economic well-being and quality of life of a community by building local wealth, diversifying the economy, creating and retaining jobs, and building the local tax base.

2.3. Promotion

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           Promotions are ways through which something can be brought to the forefront and given more attention. It is the act of moving someone (or something) to a higher or more important position or rank (Merriam-Webster Dictionary).

     Promoting Industrialization in Nigeria refers to the act of placing industrialization, above every other thing, in the course of developing (economically) the Giant of Africa, Nigeria.

  • Industrialization in Nigeria

3.1. Trends in Nigerian Industrial Policies.

3.1.1. Import Substitution Industrialization (ISI)

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      Two years after securing independence from the British colonial masters, Nigeria had its First National Development Plan. Anyanwu et al (1997) observed that Nigeria adopted Import Substitution Strategy after independence to lessen over-dependence on foreign goods and to give foreign exchange. The idea was that blocking imports of manufactured goods can help an economy by increasing the demand for domestically produced goods. It ran for the next six years before its eventual death.

      The death started at the beginning of the implementation of the policy. Instead of a domestic, indigenous manufacture of products, what the country witnessed was a mere assemblage of manufacturing items.

3.1.2. Export Promotion Strategy

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       After the death of the Import Substitution Industrialization (ISI), the Export Promotion Strategy was adopted. It focused on the production and exportation of products originally imported. It promotes only the industries that have potential for developing and competing with foreign rivals.

        However, inadequate incentives and problems of raw materials led to the failure of the Export Promotion Strategy (Anyanwu et al, 1997). Unfortunately, what may have taken the country to its next level of industrialization crumbled and once again, good ideas went down the drain, achieving nothing.

3.1.3. Indigenization Policy

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      The indigenization policy was developed in 1972 to give Nigerians increased involvement in the ownership, control, and management of the industrial sectors of the country’s economy (Asaju, 2015). 

      The policy took a pan-nationalist stance and was viewed as an enemy of globalization. In a country where pan-nationalism means being anti-west and liberalism means being West loving, the policy was heavily criticized by liberalists and thus was abandoned in the 1980s.

      Many other policies followed suit. We had the Balanced Development Strategy designed to encourage greater synergy within the industrial sector. The Local Measure-based Industrialization strategy was also introduced due to the dwindling oil revenues. The intention was that it would help stem expenditure of foreign exchange on the importation of raw materials and spare parts for industrial production activities (Asaju, 2015).

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       The Structural Adjustment Programme (SAP), likewise the Trade and Financial Liberalization Policy was accepted by the government in 1986 and 1989 respectively, due to the influence from the World Bank and IMF.

       Not minding all these policies and the good intentions with which they were marshalled out, Nigeria is still nowhere close to having an industrialized economy; she is nowhere near being an industrialized country. The aim of the country to be amongst the top 20 economies by 2020 is yet to be actualized; the country is still dreaming while sleeping and forgetting her dreams while awake, not minding the Vision 20:2020. It seems the country is more interested in the rhymes of the numbers and their poetic rendition instead of what the Vision entails.

       To understand how backward the industrial sector is, it is important that to note that as of 2016, the industrial sector contributes only about 6% to the country’s export earnings as opposed to the 94% contributed by the Oil and Gas sector (Aliya et al, 2016). This shows that in a world that is becoming industrialized and is researching ways to go green, Nigeria is still dependent on oil, a natural resource that she might soon be forced to be the only consumer.

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       How did she get here? How did a country which was one of the largest growing economies in the world got to this level? What is Nigeria doing wrong?

  • Factors Militating Against Industrialization in Nigeria

      There are factors which the country must look into if she must become industrialized. As far as these factors are not properly handled, no number of policies (no matter how grand and well-intentioned they are), no amount of will power will get the country to the level she seeks to be. These factors cut across different spheres and sectors: individual, educational, societal, government.

  • Low Technological Abilities of the Country

        The technological backwardness of the country is a glaring one. One of the many areas where this technological backwardness continues to affect the country is in the area of industrialization.

        Since industrialization requires the replacement of manual labour with mechanized mass production and the replacement of craftsmen with assembly lines, it is evident that there can be no industrialization in the absence of technological advancement. In the country, there are schools of science, technology, and engineering where a student upon admission continues doing “alternative to practicals’ till graduation. Consequent upon this, these schools continue to produce graduates with no relevant skill in their area of expertise.

      These schools even when they have the manpower lack the apparatus needed to carry out such practicals and this continues up to the national level where it is possible to have a minister of technology who cannot operate an android phone. Technology is in coma in Nigeria and only receives painkillers as medications. This is a big problem to Industrialization in Nigeria for the same way a foetus needs a uterus to grow and survive is the same way industrialization needs technological advancement, else there will be a miscarriage.

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4.2. Defective Trade Policies

           Adoghe (2013) rightly observes that the Nigerian government can never be proactive in terms of policy formulation; that “most industrial development plans are no more than countermeasures to correct perceived deficiencies in the economic sphere.” It is also in his contention that such knee-jerk policies are severely limited and cannot sustain a framework for serious long-term industrial development.

         There are cases of plagiarism and copy-cats in the development of the trade policies. There are situations where a group of ‘intellectuals’ commissioned to carry out an in-depth study on any particular issue and come up with the most feasible and practical policy, ends up wasting the money given to them for the research on their personal needs. Then they rush to copy what their colleagues in other countries have done and just change names of locations not minding that every country has its peculiarities and that what worked in China may not work in Nigeria.

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         The country ends up with policies that are faulty from the word go and what happens to a house erected on a faulty foundation?

4.3. Lack of Infrastructure/ Infrastructural Decay

       There is a lack of basic amenities needed for industrialization to thrive in the country. From the empty laboratories and workshops at the educational institutions to the bad roads, there is a visible state of inexistence and deterioration. In a country where there is no power supply, industries are forced to generate their power leading to an astronomical increase in the cost of production. Industries that cannot survive either fold or relocate. Even when these infrastructures exist, the lack of maintenance culture in the country ensures that they are left to wither away. 

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    Kolade-Otitoju (2009) recorded that the Manufacturers Association of Nigeria (MAN) disclosed an “unrelenting free fall in its membership due to unsteady and inadequate power supply, dilapidated road network and absence of a defined master plan for railway development.”

      Industries are not built in the air and industrialization, though may start from the blank pages of a book, is not achieved there. Without the infrastructure, and without proper maintenance for the ones that are, there will be no industrialization of the country.

4.4. Lack of Political Will to Influence Industrialization

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         The Nigerian politicians have mastered the poetics of speech deliverance and the theatrics of campaigning. To them, campaign promises are not things meant to be implemented but things designed to appeal to the emotions of the voters. When they speak of industrializing the economy, they are just saying things they know will soothe the ears and minds of the people; things that will just get them into office. There is no will or commitment on their part to implement what they have promised to do during their campaigns.

         Also, there is this clout-chasing mentality reposit in the minds of the politicians. Each one of them wants to bring out a novel policy, something that they can claim to be the founder. This means that they will never continue with policies formulated or programmes established by the former administration. The style has always been, get into office, condemn every single policy and programmes of the previous administration, scrape them away and initiate your own. The cycle continues in that manner.

          An example of this as revealed by Kolade-Otitoju (2009) happened few days before the end of the Obasanjo administration. The outgoing administration indicated its readiness to revive the textile industries through the proposed 70 billion Naira Textile Revival Fund but the operators were not able to access the funds due to the expiration of the tenure. And this does not happen only in the industrial sector. It seems to be a worm growing systemically in the country’s belly. Stories abound of students sent overseas to study on scholarships fully funded by the government only to get there and be stranded due to the expiration of the tenure of the administration that sent them there and the refusal of the new administration to continue sponsoring them.

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         This lack of will to influence industrialization is evident in the hypocritical actions displayed by the politicians and ‘leaders’. On Feb 5, 2020, after a closed-door meeting, the National House of Representatives led by Hon. Femi Gbajabiamila reached a resolution to order 400 cars for her members. A report on the resolution written by Punch reporter, Leke Baiyewu under the title, Reps order 400 exotic cars, reject Nigerian brands featured an interview the reporter had with an anonymous rep member. The reporter quoted the lawmaker as saying, “It is Toyota Camry 2020. Manga will supply the remaining 100. Someone suggested Innoson. I feel he was being sarcastic. He is from Anambra.”(emphasis mine).

      Coming from a stakeholder in the government of the country, part of those who chants buy Nigerian and promise the citizens industrialization, one can easily gauge the mindset of the politicians and leaders from that comment. To think that a lawmaker will think of such a suggestion as being sarcastic will beat every sane mind and leave it bewildered. It is a crystal-clear show of the hypocrisy inherent in their campaign promises.

4.5. Corruption, Nepotism, and Tribalism

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        One cannot talk of the problems with Nigeria, in whatever sector, without mentioning this trio. The industrial sector of the country’s economy is not immune to the pains caused by this three-pronged red-hot spear. When the politicians are using the money marked out for industrialization to fill their own pockets instead of executing the projects, that is corruption, and there is no way industrialization can take place in such a situation. 

    When people are appointed to handle positions they’re incompetent of handling, while neglecting those with the abilities, capabilities, and capacities needed to handle the positions, simply because they are related to Mr. A and not Mr. B, that is nepotism. When projects in the industrial sector are handed over to people who can only function in the educational sector while neglecting established industrialists who can effectively carry out the projects because the educationist is the president’s brother, that is nepotism. And no bridge is built with the teachers’ chalk and blackboard. Part of the design may be drawn there, but structural engineers are those who will breathe life into the designs, not the teachers whose chalks were borrowed.

       He is from Anambra. Any keen observer of happenings in Nigeria knows very well that the comment is not just a reference to the state of origin of the lawmaker being referred to. It was not just a means of identification. It goes beyond that: to suggest that this lawmaker could only have made this suggestion because he hailed from the same state as the founder of this car-producing company. Here, tribalism becomes the order of the day and what the anonymous lawmaker didn’t say but is evident is that he won’t support that idea since the owner of the company is not his ‘brother’. Whenever competence is sacrificed on the altar of brotherhood, that is tribalism. Industrialization is a process that cuts across tribes. Tribalism is always a wall to its actualization.

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4.6. The Process and Effects of Globalization 

         Globalization as a dynamic process only benefits the stronger member of the world economy while the weaker ones find themselves further marginalized (Aluko, 2006). To (Aluko, 2006), the Nigerian economy “was carefully developed to rely on the British and other Western countries.”

         Due to the identity stripping nature of globalization, Nigeria is faced with the option of developing and getting other countries to copy her in the name of globalization, or to be the country copying the stronger members of the world economy. Unfortunately, Nigeria has always been part of the weaker ones and has refused to choose the latter.

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        An English translation of an Igbo proverb reads that one who doesn’t know where the rain starts beating him will not know where the rain stops beating him. He who cannot be authentic can never be industrialized.

  • Promoting Industrialization in Nigeria

       Identification of a problem is one important step towards solving the problem. But the identification of the problems alone does not solve them. That is why this paper at this point looks at ways through which industrialization can be promoted in Nigeria, which is the objective of this paper.

  • Adopting and Adapting the Technological Innovations Necessary for Industrialization

          The world is constantly in flux and changing at an even faster rate is the world of technology. To promote industrialization in the country, we must have to adopt and adapt the technological innovations necessary for industrialization.

          These necessary innovations involve the use of new basic materials. Advancement in Quantum Mechanics and Miniaturization technology (dedicated to the study of simultaneous size reduction and functionality increment of tech gadgets) tends to make the old basic materials obsolete. Adopting and studying this Miniaturization technology is one way to promote industrialization.

          In a world where fossil fuels are losing their importance as climate change realities now force all to look for ways to go greener, Nigeria should explore other sources of energy generation. The country should harness solar energy and wind energy to replace her coal and petroleum-dependent energy generation sector. In doing this, industrialization is promoted in the country.

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  • Developing Credible and Appropriate Development Plans

         Any plan that does not consider the peculiarities of the people for which it is designed is worse than having no plan at all. The Development Plans developed in the country should not be mere adulterated copies of the ones that have worked in other countries but one which considers the Nigerian landscape, demographics, and spirit. The Nigerian culture, which is a conclave of many different cultures must be taken into cognizance when developing policies and plans, for man is an emotional animal and culture which deals a lot with people’s emotions affect how people react to new plans.

         The development plans and policies should not be developed as mere responses to perceived problems or as a gap-filling rhetoric. It should be proactive and not reactive. Being proactive means that it comes from a well-researched platform and helps solve problems yet to even develop. Being proactive means that it is a wholesome, well-thought-out policy and not just a knee-jerk reflexive action.

       A faulty plan is dead even before its implementation. For industrialization to occur, the plans must be credible and appropriate.

  • Putting into Place Substantial Stock of Infrastructure

       Industrialization does not occur in a vacuum. It is not a castle built in the air. If the needed infrastructures are not present, industrialization does not happen. For industrialization to be promoted, a substantial stock of the necessary infrastructures must be put into place.

      From schools, laboratories, and workshops where researches are carried out, to the power supply sector, infrastructures must be put in place to get them functional. The transport system must be improved upon for easy access to raw materials and transport of manufactured products. When industries have a constant power supply to run their machines, when schools and laboratories have a substantial stock of the amenities needed for researching this Research and Development (R&D) era; when industries have good roads through which they can get access to the raw materials required for their production and through which they can get their finished products to the consumers, then and only then, can industrialization be promoted.

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  • Considerable Political Will and Commitment to Policies

      Government is a major stakeholder in the discourse around the promotion of industrialization in the country. Should the government be compromised in this crucial task, then nothing being discussed is meaningful.

       To promote industrialization in the country, leaders are to be committed to the policies they announce and must have the political will to implement them. Leaders who do not just ululate about industrialization for the mere purpose of political gimmicks but who are devoted to the course are needed. And if the leaders are talking of Buy Nigerian, they should lead by example and must not think of the idea as being sarcastic.

  • Eradication of Corruption, Nepotism, and Tribalism

           The fight against corruption has been going on for a while in the country now. In fact, it is the major focus of the Buhari-led administration. Despite all the anti-corruption policies and laws, the country has been bombarded with under the current administration, she is still bedevilled with this hydra-headed demon called corruption. A simple scholarly look at the cause reveals that what we have is just a lip service fight of corruption; a state where corruption is fought on national television channels, radio channels, and newspaper outlets only.

           To promote industrialization in the country, there must be zero tolerance for corruption in the country. Nigeria and Nigerians must value competence over friendship and biological affiliations while giving appointments and electing people into offices; Nigeria must not allow tribal sentiments to cloud her vision.

  • Focus on Manufacturing to Drive Job Creation

       It is unfortunate that Nigeria is a country of consumers and consumers only. A country that imports everything her citizens use, from toothpicks to slippers, cannot be talking of industrialization without talking of manufacturing. 

       The focus should change from consumption to manufacturing. Fortunately, the country is filled with hardworking citizens who are ready to make that happen should they be given the necessary support. Just recently, the president of the country, Muhammadu Buhari, received the first made in Nigeria android phones. On 8th July 2019, the University of Nigeria Nsukka unveiled the country’s first indigenous electric car. So, there is no shortage of human capital necessary to drive this manufacturing. The problem is, do they get the support they need?

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       The national focus must change to manufacturing as that not only promotes the industrialization of the country but also creates more jobs for the citizens thereby reducing the rate of unemployment in the country.

  • Utilizing the Deep Pool of Human Capital Available

           No matter the number of resources a country has and how advanced her infrastructures are, a defective human capital utilization keeps her backward. Fortunately, as already stated above, there is no shortage of such human capital in the country. Utilization of this human capital – citizens who are passionate and ready to take the country to the next level of global relevance – is one potent means of promoting industrialization in the country. There is nothing the human mind cannot achieve once it has made it its duty to do so. The government and other concerned agents should utilize such an indomitable ability.

  • Reforming the Educational System and Bridging the Gap Between the Gown and the Town

        The concept of Garbage In Garbage Out is a concept that is widely known because of its efficaciousness. A faulty educational system cannot produce healthy graduates. The educational system urgently needs reform. The way Science, Technology, and Engineering are taught in schools needs a total overhaul. This is important because industrialization cannot happen without these areas of study. Students are running away from these areas and those who are there are as good as doing nothing. That must be fixed. The laboratories and workshops must be made functional and the digitalization of the educational system must be embraced as it is one way of reforming the educational system.

       Innovations mostly occur in our schools amongst the intellectuals and the students. Unfortunately, many ground-breaking pieces of research and innovations carried out amongst these people that could help towards the aim of industrializing the economy are just left to be collecting clouds of dust on the pages of books. There are no systems set up to translate these into realities. Lion Ozumba 551 (the electric car produced in the University of Nigeria Nsukka), is now covered with tarpaulin in one of the laboratories in the school’s engineering faculty where dust will keep it company on its journey to oblivion. It has received national applauds, it has made the image of the institution more alluring and it has shown that the country has lots of talents, but has it solved the problem it was developed to solve? There is an urgent need to bridge this gap between the gown and the town; the academia and the practitioners; the innovation and the industry.

  • Conclusion

       Promoting industrialization in Nigeria has become a crucial topic of discussion. This is because an industrialized country translates to an advanced country where unemployment can only be heard of in history classes. Industrialization is like an elder brother that drags his younger ones – other sectors of the economy – towards the shining light and gives them a fresh breath. To get Nigeria moving forward, she must be industrialized.

       This paper has introduced to us the topic of industrialization. To understand what can be done to better promote industrialization in the country, the paper examined the previous governmental policies geared towards the industrialization of the country and what made them fail.

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      The paper shows that defective trade policies, infrastructural decay like lack of power supply and poor road network, lack of political will to influence industrialization, corruption amongst others are the factor militating against industrialization in the country. These factors have led to a high poverty and unemployment rate in the country and have left Nigeria in the lowest rung of the third world ladder.

     The paper recommends that developing credible and appropriate development plans; putting in place substantial stock of infrastructure; considerable political will and commitment to policies are needed to drive the industrial sector of the country forward. Finally, utilizing the deep pool of human capital and eradication of corruption in the country as well as the improvement of education and research is the panacea to promoting industrialization in the country.

References

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