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The African Development Bank (AfDB) has called on President Bola Tinubu’s administration to steer Nigeria towards a path of prosperity through an industrial revolution. Dr Akinwumi Adesina, the President of AfDB, delivered this message during his keynote speech at the Business Day Chief Executive Officers (CEO) Forum in Lagos.
Adesina titled his keynote “The Day the Lion Roared! Making Nigeria a Global Industrial and Economic Giant,” drawing a parallel between Nigeria’s potential and the story of Simba in the Lion King. He emphasized that Nigeria holds great promise, but that promise has yet to be fully realized.
“Nigeria should never be a poor country, and Nigerians are tired of being poor,” Adesina stated. He highlighted that Nigeria’s current pace of development is slow and falls well below its true potential. Adesina emphasized that Nigeria needs an industrial revolution, likening it to the moment the lion roars, signifying the transformation of the country into an economic giant.
Adesina pointed out that the share of manufacturing in Nigeria’s GDP has remained around seven percent for many years. The nation has been unable to unleash the full potential of its industrial manufacturing sector, resulting in underperformance.
“The performance of the manufacturing sector in the past five years has been poor,” Adesina noted. He highlighted the decline in the sector during that period. In contrast, he mentioned the dynamic and rapid growth of the manufacturing sectors in countries like Singapore, Malaysia, India, and China.
The manufacturing sector in Nigeria represents only three percent of total export revenue but accounts for 50 percent of imports in the country. Adesina expressed concern that Nigeria focuses more on import substitution rather than expanding the share of manufactured goods in its total export revenue.
Adesina stressed the need for Nigeria to shift from a “survival mode” to a “global manufacturing growth mode.” He emphasized the importance of a well-developed and policy-enabled manufacturing sector with an export orientation. This, he believes, will drive innovation, industrial policy, export market development, and structural transformation of the economy.
Instead of solely conserving foreign exchange, Adesina urged Nigeria to focus on expanding foreign exchange through greater export value diversification. He cited the examples of Malaysia and Vietnam, which successfully diversified their industrial manufacturing and experienced significant wealth creation.
Adesina concluded by highlighting the gap between policy ideas and actions in African countries, including Nigeria, when it comes to industrialization and expanding industrial manufacturing. He called for concrete steps to bridge this gap and transform Nigeria into a globally competitive manufacturing hub.
The AfDB’s message underscores the importance of embracing an industrial revolution to unlock Nigeria’s economic potential, foster innovation, and create job opportunities for its people.
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