This work focuses on Industrialization strategy and Nigeria economic growth: A case study of industrial cluster in the FCT. Nigeria’s industrial sector has experienced prolonged stagnation in growth since the country gained independence from Britain in 1960. Nigeria government over the years has instituted series of reforms in order to address the problems of the industrial sector of the economy and create employment. Given the tremendous need for jobs in the economy, the large population and number of graduates turned out from the educational institutions annually, this study is an attempt to evaluate the employment-creating capabilities of the policy reforms in the Nigerian economy in general and the industrial sector in particular. Primary data was used and a sample of 50 respondents was selected from five industries in the FCT. The data was analyzed through simple percentage and chi – square test the findings showed that industrialization strategies have not yield positive impact on Nigeria economic growth. It was concluded that the scientist knowledgeable in the specific industries are not actually involved in the design, implementation and monitoring of industrialization policies and programmes, etc.
This study aims at determining the contribution of the industrialization strategy to Nigeria economic growth using the industrial cluster in FCT as a case study. Nigeria’s industrial sector has experienced prolonged stagnation in growth since the country gained independence from Britain in 1960. Efforts by the authorities to address the problems of the sector did not appear to yield much with capacity utilization recording a very low level except in the post-1970 oil boom era when industry seemingly flourished in the euphoria of the abundant petro-dollar of the period and the massive involvement of the government in key sectors of the economy, including manufacturing. This was however short-lived given the glut that set in, in the world market for oil.
According to Egwaikhide et al (2001), the Nigerian industrial sector is often associated with features such as dominance of low-level technology import public sector policy reforms 3 of 20 substitution industries, the virtual insignificance of the engineering industry, the rise in the proportional share of the mining industry and the relative weakness of the intermediate goods industry. In addition, there is the general problem associated with weak infrastructural and social overhead capital, leading to very high costs of transactions.
Given the successes reported in the growth of the South East Asian economies and the role played by their industrial sectors in this regard, the general natural strategy of growth in Nigeria, adopted in the period of the 1980s has been the export-led industrialisation strategy, which has been linked to the tremendous growth recorded in these Asian economies. A distinguishing characteristic of the economic performance of Newly Industrialising Countries (NICs) in East Asia is the highly equitable distribution of gains from economic growth. The rapid and sustained growth in these economies since the late 1960s has been accompanied by a reduction in poverty and improvement in living standards of their people across the board. Income distribution continued to remain relatively more equal than in other countries at a comparable stage of development. The mainstream (neoclassical) economists interpret this achievement as a natural outcome of export-led industrialisation, which can be replicated in other developing countries provided the policy fundamentals are right (Adenikinju and Chete, 2002).
With series of reforms instituted in Nigeria, beginning from the Structural Adjustment Programme, SAP in 1986, to the current transformation agenda of the federal government, efforts have been made to address the problems of the industrial and other sectors of the economy and create employment, given the tremendous need for jobs in the economy, in view of the large national population and number of graduates churned out from the educational institutions annually. Hence, this study is an attempt to evaluate the employment-creating capabilities of the policy reforms in the Nigerian economy in general and the industrial sector in particular.