ABSTRACT
There is a popular conception that the Nigerian economy depends on crude oil – that is, Nigeria is an oil economy. While this is true in terms of contribution to public sector revenue, sectors like agriculture, ICT, and the creative economy contribute more to GDP. There is a second popular conception that as the need for diversification is now clear, the path for Nigeria is to build up its low-end manufacturing and then move on to higher value-added goods, essentially mimicking the development of South Korea, Taiwan and other countries. In this chapter, we argue that both conceptions are, in fact, misconceptions. We then hypothesize a different optimal development path for Nigeria, one based on the concept of Brain Capital. Our hypothesis is based on the fact that Nigeria is already extremely successful at exporting Nigerian brains, and the country should build on this strength rather than pursue diversification strategies based on lower value-added activities. In addition, unlike oil, Nigeria’s Brain Capital strategy is resilient and consistent with long-term trends as there will be an increasing demand for professionals abroad. More so, the recent trend of work-from-home and virtual jobs has jettisoned the concept of brain drain. Therefore, a full-scale implementation of the Brain Capital strategy will unlock a new channel of public sector revenue, foreign exchange generation and support for development in Nigeria.
