Industrialization policies and the Nigerian Economy 1

ABSTRACT

The current structure of the Nigerian economy is typical of an underdeveloped country. After independence around 1960, African countries started with high hopes for rapid growth and development. Whereas the initial performance was remarkable, economic development slowed in the 1970s and stagnated in the 1980s. In response, the states’ attempts to reinvigorate economic growth through state-led investments and import substitution industrialisation strategies were unsuccessful. The World Bank, the International Monetary Fund and Western donors developed and advocated Structural Adjustment Programmes (SAPs), which emphasised macroeconomic stabilisation, privatisation and free market development. The industrial sector accounts for 6 percent of economic activity, while in 2011, the manufacturing sector contributed only 4 per cent to GDP. The economic transformation agenda, otherwise known as Nigeria Vision 20:2020, sets out the direction for current industrial policy in Nigeria. The industrialization strategy aims at achieving greater global competitiveness in the production of processed and manufactured goods by linking industrial activity with primary sector activity.