Industrial Development in Nigeria

INDUSTRIAL DEVELOPMENT IN NIGERIA IN THE CONTEXT OF GLOBALIZATION

By

B.W. Adeoye
Research Fellow
Economic Development Department
Nigerian Institute of Social and Economic Research ( NISER )
Ibadan.

A paper submitted for presentation at the 45th Annual Conference of the Nigerian Economic Society(NES), Holding in Abuja between 24th and 26th August, 2004.

February, 2005.
INDUSTRIAL DEVELOPMENT IN NIGERIA IN THE CONTEXT OF GLOBALIZATION

Abstract The fundamental issue addressed in this paper is the extent to which Nigeria has restructured her industrial and trade systems for effective industrialisation within the on-going trade globalisation process.Basically, the study employs historical analysis of trade and industrial systems in Nigeria. Findings from the study reveal that the Nigerian economy has not changed its export and import structure over the 1970 - 2002 period. The only changes that have taken place to its export was just a mere shift in exported product indicating a sign of export substitution from primary agro industry-based exports to primary mining industry-based exports(i.e crude oil).The results also suggest that the structure of imports has not changed significantly over the period 1970 - 2002 despite series of strategies and policies put in place by the government. While the reforms favoured domestic resource-based industries, it produced an inverse impact on import intensive, low value-added units. In fact, over 70 per cent of the total imports were still manufactured goods, most of which consisted of industrial raw materials, spare parts, machinery and equipments and capital goods. Generally, enough incentives for efficient resource allocation in order to promote manufactured exports within the on-going process of globalisation coupled with economic liberalisation and deregulation paradigms have not been created. It was proposed that a mixture of the invisible

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