NESG: Industrial Policy Alone Not Enough to Achieve Industrialisation

The Nigerian Economic Summit Group (NESG) has emphasized that industrial policy alone is insufficient to achieve industrialization in Nigeria's economy. The organization argues that industrialization must be viewed as a means to generate employment, decent jobs, and poverty reduction, rather than just an expansion of manufacturing.

Over the years, Nigeria has pursued industrialization as a key component of its economic transformation strategy, introducing various industrial policies to diversify the economy, boost domestic production, and create jobs. However, despite these efforts, the country still falls short of the required industrial transformation to drive inclusive growth due to factors such as inadequate infrastructure and access to finance.

The NESG stresses that industrial policy is a crucial factor in unlocking productivity gains and accelerating structural transformation but is not enough on its own. The effectiveness of industrial policy hinges on the presence of enabling structural fundamentals, including robust infrastructure, human capital, access to finance, institutional quality, and technological capabilities, which facilitate successful implementation.

The NESG asserts that persisting challenges indicate that industrialization cannot be achieved through industrial policy alone. Instead, it necessitates a coordinated policy approach that simultaneously tackles the foundational constraints limiting productive capacity while ensuring that industrial growth leads to wider improvements in living standards.

The group warns that without a deliberate commitment to industrialization, a significant portion of Nigerians will remain mired in the informal economy, characterized by low productivity and limited wage employment. It highlights that without the creation of a substantial number of productive jobs, the population of working poor will grow, potentially intensifying social pressures such as insecurity and heightened tensions.