Glocalising Nigeria: The path to economic resilience and stronger naira

Imagine a Nigeria where local industries are not just surviving but thriving—powered by indigenous resources, homegrown innovation, and deep integration with global markets. This means glocalising Nigeria.

Envision a textile industry fueled by Nigerian-grown cotton, processed in local mills, and transformed into world-class fashion, competing on international runways. Picture a technology ecosystem where Nigerian-built software solutions and fintech platforms serve both local enterprises and global corporations.

Think of an agricultural sector where our cassava, cocoa, and palm oil are not only feeding our people but commanding premium prices on global shelves.

Read also: Africa’s 10 fastest-growing industries

Learning from History: The Rise, Fall, and a Chance to Rebuild

Nigeria was once a continental leader in textiles, with cities like Kaduna and Kano bustling with mills that supplied both local and export markets. The 1970s saw a thriving industrial base, contributing over 25% to GDP at its peak.

However, policy inconsistencies, infrastructural decay, and an over-reliance on imports led to its decline. Today, Nigeria imports over $4 billion worth of textiles annually, a sharp contrast to the era when our textile industry employed over 500,000 people. The lessons from that period are clear: sustainable industrialisation requires strategic government intervention, private sector innovation, and global market integration.

Now, consider the glocal strategies that propelled economies like China, India, and Brazil to global prominence:

China: Leveraged local manufacturing strength while integrating with global supply chains. It focused on building industries with export potential while maintaining strong domestic consumption, leading to the rise of brands like Huawei and BYD. Today, China accounts for nearly 30% of global manufacturing output and exports over $3.4 trillion worth of goods annually.

India: Positioned itself as a global leader in IT and pharmaceuticals by developing local capacity while serving international markets. Companies like Infosys and the success of India’s generic drug industry show how local expertise can meet global demand. India’s IT sector alone contributes over $200 billion to GDP, while pharmaceutical exports exceed $25 billion annually.

Brazil: Maximised its agricultural advantage, making its agribusiness sector a global powerhouse through investment in research, local value addition, and export-oriented policies. Today, Brazil dominates the global soy, beef, and sugar markets, with agriculture contributing nearly 25% of GDP and accounting for over $100 billion in annual exports.

Read also: GEF-UNIDO project to assist industries advance energy efficiency MAN

Mapping Nigeria’s Glocal Transformation

A strategic glocal approach—where Nigeria prioritises local production while scaling for global competitiveness—could fundamentally reshape our economy. The key is identifying industries with the highest potential:

✅ Textiles and Fashion: With a rich history in cotton production, revamping the textile value chain can create millions of jobs and reduce import dependency. Nigeria currently produces about 60,000 metric tons of cotton annually, but with strategic investments, this can rise to over 200,000 metric tons, significantly reducing the need for imported fabric.

✅ Technology and Fintech: Nigeria’s fintech sector is already making global waves, with companies like Flutterwave and Paystack processing billions in transactions annually. Expanding digital infrastructure and fostering local innovation will further solidify our position as Africa’s tech hub. The Nigerian tech sector attracted over $1 billion in funding in 2022 alone, highlighting its global competitiveness.

✅ Agribusiness: By focusing on value addition, Nigeria can shift from raw commodity exports to processed goods that fetch higher global prices, strengthening the naira in the process. Currently, Nigeria is the largest producer of cassava, yet over 80% of it is consumed locally with minimal processing. Investing in starch and ethanol production could generate billions in foreign exchange.

✅ Manufacturing: Policies that promote import substitution while maintaining global standards can transform Nigeria into West Africa’s industrial leader. The manufacturing sector, currently contributing around 9% to GDP, could reach 20% with targeted investment and policy reforms.

Policies and Partnerships: The Catalysts for Change

Government and private sector initiatives must align to accelerate this shift. Key focus areas include:

Investment in Infrastructure: Reliable power supply, efficient transportation networks, and digital connectivity are essential for competitiveness. Nigeria loses over $29 billion annually due to inadequate electricity, a critical barrier to industrial growth.

Incentivising Local Production: Tax breaks, export incentives, and funding for SMEs will encourage domestic growth. The Bank of Industry has provided over N1 trillion in loans to support local businesses, but more targeted funding is required to scale production.

Strategic Trade Agreements: Leveraging the African Continental Free Trade Area (AfCFTA) to access a wider market while protecting local industries. The AfCFTA could boost intra-African trade by over $450 billion by 2035, providing an unprecedented opportunity for Nigerian businesses.

Public-Private Partnerships: Collaboration between government, businesses, and investors to drive innovation and industrial expansion. Successful models, such as the Dangote Refinery project, show the potential of large-scale industrialisation driven by local expertise and foreign investment.

Read also: Love, commerce, opportunity: How Nigeria’s local industries thrived on Valentine’s Day

Why This Matters: Strengthening the Naira and Securing Our Future

A robust local value chain reduces import dependency, strengthens the naira, and creates employment. Nigeria currently imports over $47 billion worth of goods annually, much of which could be produced locally.

Imagine a Nigeria where demand for locally made goods fuels a production boom, attracting foreign investments and reversing capital flight. Technology, infrastructure, and strategic partnerships will be critical in positioning Nigeria as an African powerhouse.

China, India, and Brazil have shown that going local with global expansion in mind isn’t just possible—it’s the foundation for economic transformation. Nigeria stands at the crossroads. The choice is ours.

It’s time to connect the dots and take decisive action.