The country's population and purchasing power have not translated into a robust industrial base. This is largely because local firms cannot consistently compete with imports. While protecting local industries might seem like a solution, it is ineffective without addressing the underlying constraints that make production difficult and costly.
An effective industrial strategy requires a selective, evidence-based approach. Sectors like food processing, pharmaceuticals, textiles, and construction materials should be assessed for their potential to link domestic demand with local inputs and capabilities. Incentives should be performance-based, rewarding productive achievements rather than political connections.
Improving infrastructure is crucial. Industrial parks need more than just land allocation; they require dependable electricity, water, transport, and secure property rights. Governments should focus on improving existing industrial clusters and ensuring reliable service delivery, alongside transparent customs procedures and simplified business charges.
Foreign investors receiving public support should be held accountable for tangible outcomes such as workforce training, local supplier development, and export performance. Public procurement can also support local firms by providing transparent opportunities for qualified Nigerian suppliers to compete for government contracts, with timely payments being essential.