ABSTRACT
With a huge population, tremendous natural resources, large and diverse human capital, and abundant finance from its petroleum proceeds, Nigeria has all the ingredients of becoming one of the major world economies. It should have gained enough experiences from its past efforts at establishing capital goods industries.
Nigeria’s overdependence on oil plus its problem of electric power shortage and inefficiency greatly impair the country’s viability as a modern economy. Poor security conditions and rent seeking are among the major problems.
Industrialization, diversification, and rural development can considerably reduce poverty, unemployment, and geographical and interpersonal inequalities. Such policies would enhance the domestic market. Development of the manufacturing sector, especially of the capital goods industries, would have tremendous impact on domestic supply and demand. The multiplier effects would extend to the whole of Africa through trade and investment.
Before the oil industry came to dominate the Nigerian economy, the country produced its own food supplies and exported large quantities of various farm products. Reemphasis on the development of the agriculture would raise incomes, reduce poverty and inequalities, expand the domestic market, and further enhance the efforts to building a self-sustaining industrial economy.
