By Benard I. Odoh
Day 4: Comparative Advantage and the Roadmap to Execution
The most profound lesson from the Global South is this: resource wealth alone does not guarantee prosperity. Nations that have successfully transitioned from raw material dependency to industrial competitiveness did so not because they possessed more than Nigeria, but because they chose to act with clarity, policy discipline, and an uncompromising focus on outcomes. From Vietnam to Rwanda, Morocco to Ethiopia, the common thread in their transformation story is not luck or abundance—it is execution. These countries did not merely own raw materials; they created value chains. They did not just talk about industrialization; they built factories, trained workers, incentivized investors, and enforced accountability. Their progress was intentional, not incidental. It is in this spirit that Nigeria must now forge its own industrial path.
Take Vietnam, for example. Just over three decades ago, it was largely agrarian, reliant on rice exports, and trailing behind in global competitiveness. But through a visionary blend of export-led policies, the establishment of over 350 specialized industrial parks, and targeted investment in human capital, Vietnam now stands tall as a manufacturing giant. Electronics alone contribute over $96 billion to its export base, with manufacturing accounting for nearly 25% of its GDP (World Bank, 2022; GSO Vietnam, 2023). Vietnam’s transformation was not theoretical—it was architectural. If Vietnam could rise from rice paddies to global tech parks, then surely Nigeria, with even richer agricultural and mineral resources, can transition from cassava fields to ethanol corridors and from lithium pits to battery labs. By creating six well-equipped industrial parks linked to high-potential value chains by 2027, Nigeria can unlock $10 billion in manufactured exports and generate over 300,000 new jobs by 2030.
Rwanda offers another compelling example. In 2018, the country made the bold decision to halt the export of raw coltan and instead established Africa’s first tantalum refinery, inserting itself into the global technology supply chain (The East African, 2019). The results were immediate: increased foreign investment, ethical sourcing partnerships, and new job opportunities. Nigeria, with far more abundant mineral reserves, must take this strategy even further. By establishing five mineral beneficiation plants focused on lithium, barite, lead, zinc, and gold by 2028, we can raise the mining sector’s contribution to GDP from the current 0.63% to at least 3%, while creating over 50,000 jobs across the value chain (NEITI, 2023). This is how resource wealth becomes national wealth.
Morocco’s playbook offers yet another valuable lesson. Rich in phosphates, the country refused to remain a mere rock supplier. Through a state-backed industrialization strategy, anchored by the OCP Group, Morocco invested heavily in fertilizer manufacturing and has become the second-largest exporter of fertilizers globally, generating over $11 billion in annual revenue (OCP Annual Report, 2022). Nigeria, with both phosphate deposits and abundant natural gas reserves, can dominate West Africa’s fertilizer market by doubling output from 2 million to 4 million metric tonnes and exporting to ten African countries under the AfCFTA by 2028. As Nelson Mandela once said, “It always seems impossible until it’s done.” The impossible is achievable when backed by vision and follow-through.
India’s Production-Linked Incentive (PLI) Scheme shows us how to reward performance, not promises. Under the PLI, incentives are disbursed only when companies meet defined production benchmarks. This results-based model has led to a 16.8% increase in exports from sectors like electronics and pharmaceuticals within just two years (Indian Ministry of Commerce, 2023). Nigeria can adopt a similar approach through a ₦50 billion Value-Linked Grant Scheme, targeting agro and mineral processors who meet verifiable export and job creation targets. Such a model could help Nigeria triple its non-oil value-added exports from $3.5 billion today to $10 billion by 2030 (CBN & NEPC, 2024). As Peter Drucker reminds us, “What gets measured, gets managed.” By rewarding outcomes and scaling what works, Nigeria can begin a new chapter of results-driven industrialization.
Despite its domestic challenges, Ethiopia’s Hawassa Industrial Park stands as an African symbol of ambition. Eco-powered and globally branded, it attracted multinational companies such as H&M and PVH, created over 30,000 jobs, and generated more than $100 million in garment exports (Ethiopian Investment Commission, 2021). Nigeria’s textile hubs in Aba, Kano, and Lagos hold far more potential. With strategic upgrades in power, logistics, and branding, these clusters can collectively generate over $500 million annually in exports and support at least 200 MSMEs by 2028.
The pattern from these success stories is unmistakable. These countries selected a few competitive sectors, built infrastructure and incentives around them, rewarded producers, and held themselves accountable for outcomes. They didn’t merely write plans—they laid concrete, installed machines, and hired people. They moved from theory to practice. Nigeria must do the same.
A practical model Nigeria can adopt is a Two-Value Chain-Per-Zone strategy. Each geopolitical zone should focus on one agricultural and one mineral value chain. For instance, the Northcentral zone can anchor cassava (ethanol) and barite (chemical-grade processing), while the Southeast could focus on cashew processing and lead/zinc battery manufacturing. This localized industrial focus must be supported by tailored training, financing, infrastructure, and strong public-private coordination. A national Industrial Scoreboard should track implementation across zones, while states are ranked yearly via a transparent Industrial Competitiveness Index to promote healthy, productive competition.
But execution demands institutional coordination. Fortunately, Nigeria already possesses capable institutions. The Raw Materials Research and Development Council (RMRDC), under the visionary leadership of Professor Nnanyelugo Martin Ike-Muonso, in partnership with the African Development Bank, has developed a 10-year roadmap for implementing the 30% Minimum Value-Addition Bill. This policy, if passed and enforced, will require that no raw material is exported without at least 30% local processing—ensuring jobs, value retention, and upstream industrialization. As John F. Kennedy once said, “Efforts and courage are not enough without purpose and direction.” This bill offers both.
The National Assembly deserves credit for championing this bill with bipartisan support. But the legislature’s ambition must meet the executive’s urgency. President Bola Ahmed Tinubu’s Renewed Hope Agenda rightly prioritizes industrialization and job creation. Now is the time to embed this bill into national strategy with executive orders, inter-ministerial coordination, and fiscal allocations. By doing so, the administration can transform this vision into a generational achievement.
To ensure coordinated delivery, a high-level National Value-Addition Taskforce should be created, co-chaired by RMRDC and AfDB, with permanent representation from the Ministry of Industry, Trade and Investment, the Bank of Industry, NEPC, MAN, and Customs. This taskforce must report quarterly to the Federal Executive Council and National Assembly, using a public-facing digital dashboard to track jobs created, export growth, SEZs activated, and FDI inflows.
Real transformation is not driven by slogans or politics. It is powered by coordinated institutions, funded priorities, and a culture of execution. Policy must earn public trust by delivering results. If we are serious about industrialization, then we must stop exporting effort and start exporting value. As Lee Kuan Yew, the architect of Singapore’s economic miracle, once stated: “A nation is great not by its size alone. It is the will, the cohesion, the stamina, the discipline of its people and its leaders which ensure it an honourable place in history.”
Nigeria now has the opportunity—and responsibility—to industrialize with speed, scale, and integrity. With legislative backing, presidential support, and institutional resolve, we can become not just Africa’s largest economy, but its most productive. Our future must be manufactured—not imagined.
