How Nigeria can move from consumption to production-driven economy – AFDB

Driving rural industrialisation through the development of needed infrastructure would help Nigeria transform from consumption to a production-driven economy.

Nigeria, Africa’s most populous black nation, must look beyond agriculture to encourage small-scale manufacturing, and processing industries and create markets for the goods produced in the rural areas, according to Banji Oyelaran-Oyeyinka, senior special adviser on Industrialisation to African Development Bank Group (AFDB) President.

He disclosed this at the 2024 Agricultural Summit Africa themed ‘From Scarcity to Security’, held recently in Abuja.

According to him, Nigeria’s most urgent goal should be to drive rapid industrialisation-induced growth accompanied by the emergence of secondary cities where hundreds of firms, large and small, engage in specialisation of niche products.

He explained that the journey from scarcity to security was straightforward, with industrialisation being the key to making it a reality.

Presenting a keynote titled ‘Building a Production Nation, Oyelaran-Oyeyinka, said the fruits of prosperity of nations sprout from the trees of production.

“In Nigeria, the industrial sector had been in decline for decades and since the 1970s, the industrial sector’s contribution to GDP had steadily decreased, with manufacturing output falling to less than 10 percent of GDP. This premature de-industrialisation has left the nation reliant on imports and unable to compete in global markets,” he explained.

To reverse this trend, he said there was a need to develop a comprehensive rural industrialisation strategy.

“This strategy should use the Special Agro-Industrial Processing Zones (SAPZ) model to foster commercialisation, increase productivity, and open up foreign markets for local produce,” he said.

He described the SAPZ model as a template for lifting the rural poor from the misery of accommodative poverty to becoming a market with significant spending power.

“Transforming the rural economy is a prerequisite to industrialization and we must build markets alongside the production structures.

Also speaking, Abubakar Suleiman, chief executive officer of Sterling Bank, said that food security was critical to Nigeria’s prosperity.

He said without agricultural abundance; the country would continue to face socio-economic challenges.

According to him, unless Nigeria finds a road to agricultural abundance by producing more than the country needs, it will struggle to grow in other areas.

Suleiman said that Sterling Bank’s decision to redefine its focus around healthcare, education, renewable energy, and transportation (HEART) sectors, with agriculture at the centre, was a strategic choice aimed at fostering long-term growth and sustainability.

While explaining the bank’s integrated development approach, he said sectors like healthcare, education, energy, and transportation are important, but food security remains foundational.

“For seven years, we have set aside everything else to convene what we believe is the most productive summit for agriculture on the continent. This summit is more than discussions; it’s about real action and tangible outcomes,” he said.

On his part, Sam Ode, deputy governor of Benue State, representative of Hyacinth Alia, the governor, said Benue State has ambitious plans to transform the agricultural sector and position Africa as a global food powerhouse.

“Our state is committed to a future where Africa not only feeds itself but thrives through sustainable and innovative agricultural practices.

“There is a critical need for Africa to shift from raw material-based agriculture to value-added agricultural products. This transformation will boost job creation, economic growth, and food security across the continent,” he said.

He painted a sobering picture of Africa’s food insecurity challenges, citing projections that the continent’s population could grow to 2.5 billion by 2050, increasing the demand for food exponentially.

“Despite our vast arable lands and rich resources, Africa remains heavily dependent on food imports. Over 40 percent of our food needs come from outside the continent. This is a paradox that we must urgently address through strategic investments that create sustainable food systems,” he advised.