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The Challenges of Industrialization in Nigeria and The Way Forward

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  • Blessing C. Arize

    (Nnamdi Azikiwe University, Nigeria)

Abstract

Industrialization is a major factor in economic growth and development of any nation. The availability of essential goods and services, improved living standard, stimulation of other sectors of the economy, poverty reduction, job creation, development of skilled manpower are all elements of any nation’s level of industrialization. In Nigeria’s case, a plethora of policies, programs and strategies have been formulated towards the advancement of industrialization process since its independence in 1960. One of the key considerations for these industrial policies in Nigeria is gained from the conviction that the growth of industries would provide the avenue for employment of labour, thereby reducing poverty to the lowest level. These policies have proved abortive due to myriad of challenges, including incessant power outages, lack of finance/capital, multiple government taxations, and insecurity. This study, therefore, aims to highlight the challenges of industrialization in Nigeria, as well as the way forward. To achieve this, the study adopts the qualitative methodology which includes the narrative and descriptive analysis of data, and involved investigations and eliciting relevant information from the secondary sources. The adoption of Schumpeter’s Innovation Theory was used to explain the importance of entrepreneurs as catalysts for industrialization through their innovative activities. The study concludes that the creation of a business-enabling environment is required for the needed industrial base in order to diversify the economy. This study, therefore, recommends that government should formulate and adopt policies that would encourage trade performance, local manufacturing, self-reliance and entrepreneurship among citizens as well as industrial advancement to promote economic growth. Since industrialization facilitate economic growth through the innovative activities of entrepreneurs, the range of financing instruments available to SMEs and entrepreneurs should be expanded to enable them to continue their role in investment, growth, innovation, and employment.

Suggested Citation

  • Blessing C. Arize, 2023. "The Challenges of Industrialization in Nigeria and The Way Forward," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 691-704, May.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:5:p:691-704
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    References listed on IDEAS

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    1. Matthieu Bussière & Marcel Fratzscher, 2008. "Financial Openness and Growth: Short‐run Gain, Long‐run Pain?," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 69-95, February.
    2. Chete, L. N. & Adeoti, J. O. & Adeyinka, F. M. & Ogundele, O., 2014. "Industrial development and growth in Nigeria: Lessons and challenges," WIDER Working Paper Series 019, World Institute for Development Economic Research (UNU-WIDER).
    3. Louis N. Chete & John Olatunji Adeoti & Foluso M. Adeyinka & Olorunfemi O. Ogundele, 2014. "Industrial Development and Growth in Nigeria: Lessons and Challenges," WIDER Working Paper Series wp-2014-019, World Institute for Development Economic Research (UNU-WIDER).
    4. Jonathan E. Ogbuabor & Anthony Orji & Charles N. Anumudu & Josaphat U. Onwumere & Charles O. Manasseh, 2018. "Quest for Industrialization in Nigeria: The Role of the Development Bank of Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 23-28.
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