What has the government done to encourage industrialization in Nigeria?

Answer Details

Concept. Industrialisation is the process of building up manufacturing and processing industries in an economy. Governments in developing countries deliberately encourage it to create jobs, add value to raw materials, diversify the economy, and reduce dependence on imports.

Measures the government has taken to encourage industrialisation in Nigeria.

• Provision of infrastructure. Building roads, ports, electricity, and water supply to lower the cost of doing business and support factories.
• Establishment of industrial estates and free trade zones. Setting aside serviced land and export-processing zones where industries can operate with facilities and incentives.
• Provision of finance. Setting up development banks and industrial funds (for example the Bank of Industry) to give loans to manufacturers.
• Tax incentives. Granting tax holidays, tariff concessions, and pioneer status to new and priority industries.
• Protection of infant industries. Imposing import tariffs, quotas, or bans on competing foreign goods to shield local firms.
• Import-substitution and local-content policies. Encouraging local production of goods formerly imported and requiring the use of local raw materials.
• Manpower development. Establishing technical colleges and training institutions to supply skilled labour.
• Indigenisation and privatisation policies. Transferring ownership to Nigerians and improving efficiency of state enterprises.

Examination takeaway. Group the measures into fiscal (taxes and incentives), monetary/financial (loans and development banks), and protective/infrastructural policies; explaining how each measure promotes industry earns more than a bare list.