Feature/OPED
Nigerian Economic Recovery through Industrialization and Diversification by Public and Private Sector Synergy
By Ehiedu Iweriebor
The current economic crisis and recession in Nigeria has brought to the fore what is already known: that the existent Nigerian national economy is not organized for internal self-propulsion and autonomous economic and business activities.
The Nigerian economy, since independence, has been operated by the maintenance of the neo-colonial system of development incapacitation, primary commodity export, dependency and poverty generation.
Its basic and long-standing focus has been on the expanded production and export of primary commodities, such as agricultural products like palm oil, groundnut, cotton, cocoa, rubber in the 1960s and 1970s and subsequently crude oil since the 1970s.
But as raw material export depends on external demand, it does not activate autonomous and secure economic activity.
Therefore, the Nigerian economy has no internal capacity for mass production and self-propulsion. It is a large, unfree, dependent and unviable economy.
It is well established globally that successful national economic development is a function of domestic technology capacitation and industrialization, agricultural modernization and mineral exploitation, beneficiation and use by local industries for the mass production of value-added goods.
Therefore, economically successful countries focus on expansive industrial development to achieve self-actuated development, mass production and domestic prosperity generation. This is the path followed by old and new advanced societies.
The current campaign for economic diversification also demonstrates the backwardness of Nigeria, officially thought as its primary prescription to move from one exported mineral raw material – crude oil to agricultural raw materials like yam and rice export. But those are all raw materials whose demand depends on buyers, and not sellers.
Against all global historical evidence and the nation’s own experience that raw materials production and export does not promote any form of advanced development, Nigerian leaders in the 21st century remain arrested in the 1960s imagery of groundnut and cocoa pyramids and barrels of palm oil, as Nigeria’s economic golden age.
However, in order to achieve effective economic recovery, an enlightened and ideologically autonomous Nigerian state, and especially its Ministry of Industry should actively promote economic diversification through mass industrialization and the production of manufactured goods for the home and export markets.
This can best be achieved by proactively identifying catalytic industrial development projects and programmes that will yield a variety of new industrial products. In this context, a good example of this possibility is to promote large, medium and small scale endogenous investors to utilize the intermediate goods from the catalytic plants that will generate a multiplicity of manufactured products for internal use and export within and outside Africa.
The best approach for achieving this is to survey the entire national investment environment and identify catalytic, local resource-based projects that have the potential to foster broad-based industrialization and national economic diversification for internal use and export of value added goods.
Today in Nigeria, the best example of forthcoming critical catalytic projects that can contribute to national industrial development and serious economic diversification are the Dangote Petroleum Refinery, Petrochemical and Fertilizer complexes under construction in Lekki, Lagos. These plants will not only supply their basic goods like refined petroleum, petrochemicals and fertilizer; the intermediate products of these plants if recognized and effectively promoted by the Nigerian state and especially the Ministry of Industry, Trade and Investment can transform Nigeria into a vast centre of the production of value-added petrochemical products that will convert Nigeria into an economic power house in the petrochemical sector.
This can be illustrated by identifying the modern products that can be converted into manufactured products from the intermediate products of the petroleum refinery, petrochemical complex and the fertilizer plants.
For example, the petroleum refinery in addition to its basic products such as Petrol, Diesel, Jet Fuel, and Kerosene, will also produce Slurry for Carbon Black.
In addition to the direct benefits of the beneficiation and utilization of domestic raw materials – crude oil and natural gas, each of these projects has the potential to generate a multiplicity of cognate manufacturing industries that would use their products as feed-stock or intermediate raw materials for production of new products.
The petroleum refinery for instance, in addition to its basic products will also produce Slurry which is used in the manufacture of Carbon Black.
Carbon Black is used in making of tires and numerous other rubber products including for example belts, hoses, gaskets, bushings, wiper blades, conveyors and others. It is also used in plastics and electronic products, for coatings and for making toners and printing ink.
In short, just from Carbon black a whole range of critical manufacturing industries can be developed to deepen Nigeria’s manufacturing economy. With the current expansion of computers and printers; toners and printing inks are in very high demand and are all imported into Nigeria. And much of Africa. Thus, carbon black can be used to develop an expansive toner and printing ink industry to serve Nigeria and the vast African market.
Petrochemicals are usually derived from petroleum and natural gas. They are usually classified into three major groups: Olefins, Aromatics and Synthesis Gas. Olefins include ethylene, propylene and butadiene which are used in plastic and synthetic rubber industries.
The primary products of the Dangote Petrochemical Plant are within the Olefin sub-group, specifically polypropylene and polyethylene – collectively known as polymers. They can provide the intermediate materials requirements of the entire domestic plastics manufacturing industry. With their availability, Nigeria’s plastic products manufacturing industry would no longer be dependent on the importation of feedstock and there would be a guaranteed and secure domestic source of raw materials supply.
The production activities of the plastic subsector manufacturers will now be unconstrained by foreign exchange shortage. Some products made from Ethylene include garbage bags, camera films, milk crates, bags and other products.
All these ancillary industries will contribute to expanded manufacturing production in the various sub-sectors of the plastics industry and other economic activities and the generation of substantial employment opportunities.
In the light of these potential impacts of the Dangote Petrochemical complex on industrialization and economic diversification, a nationalist and pro-active Federal Ministry of Industry, Trade and Investments should now be actively organizing workshops, seminars and awareness programmes across the country, complete with ready-made project profiles for large, medium, small and cottage level Nigerian industries to prepare to start their factories as soon as the petrochemical plant takes off.
This is how a proactive and patriotic Ministry of Industry, Trade and Investment, as well as other MDAs that are primarily committed to Nigeria’s interests should work to advance Nigeria’s development. This would be in complete contrast to the current posture and vocation of Nigerian MDAs which now works for the World Bank and implements its anti-development dogmas, policy and programmes diktats that render Nigeria prostrate.
The fertilizer plant will produce ammonia and urea, intended primarily for agricultural production. However, it is important to note that numerous other industries can be established with the use of urea as feedstock. For example, UREA is used in making paints, adhesives, polyurethanes, pharmaceuticals, such as toothpaste, cosmetics, flame proofing, acid, fabric softeners, cattle feed, formaldehyde and as an additive to paper, board and plywood; for surface coating, moulding resins, leather coating, textiles and for products that reduce noxious emissions in diesel engines. In short, a multiplicity of fine chemical industries can be developed from the products of the fertilizer plant.
Thus, with the availability of this feedstock from the various refinery, petrochemical and fertilizer plants, there is clearly potential to create a multiplicity of basic and ancillary industries, all of which will contribute to the country’s advanced economic development.
Taken together with all these by-products made from intermediate products of the petroleum refinery, petrochemical and fertilizer plants, it is actually feasible to develop Nigeria as one of the primary global and African centres of the mass production of basic petrochemicals and their by-products like plastics and hundreds of other derivative chemicals.
In this way, and with these value-added products, Nigeria would move into the league of industrially developed countries that sell and export diverse manufactured goods, rather than agricultural and mineral raw materials. These would help diversify country’s revenue streams away from dependence on raw materials export.
More fundamentally, it would put the country on the pathway of economic freedom and self-actuated development, development capacitation, mass production, mass employment, export of value-added products, domestic prosperity generation and national empowerment.
Ehiedu Iweriebor, PhD, is a professor of history in the Department of Africana and Puerto, Rican/Latina Studies, Hunter College, City University of New York, USA.
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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