Nigeria, Africa’s most populous nation, grapples with widespread poverty, with over 80 million citizens living below the poverty line. To lift millions out of poverty, the government must deliberately transform Nigeria into Sub-Saharan Africa’s manufacturing powerhouse, emulating Vietnam’s remarkable post-war economic ascent.
By prioritising industrialisation, Nigeria can drive job creation, economic diversification, and sustainable growth.
Vietnam’s transformation offers a compelling blueprint. After the Vietnam War ended in 1975, Vietnam was a war-torn, agrarian economy with per capita GDP below $100. By 2020, it had risen to over $2,700, with manufacturing accounting for 16% of GDP and exports reaching $282 billion. Vietnam achieved this through deliberate government policies: liberalising trade, investing in infrastructure, and creating a business-friendly environment. The 1986 Đổi Mới reforms opened markets, attracted foreign direct investment (FDI), and incentivised export-oriented industries like textiles and electronics. By 2023, Vietnam was a global hub for brands like Samsung, with manufacturing employing millions.
Nigeria, endowed with abundant natural resources, a young workforce and a strategic location, is well-positioned to replicate this model. However, deliberate government action is critical. First, Nigeria must address its infrastructure deficit. Chronic power shortages, with only 4,000 MW generated for 200 million people, cripple industrial potential. Vietnam invested heavily in electricity, achieving near-universal access by the 2000s. Nigeria should prioritise renewable energy and grid modernisation, leveraging public-private partnerships to boost capacity.
Second, the government must streamline policies to attract FDI. Vietnam’s success stemmed from tax incentives, special economic zones, and simplified regulations. Nigeria’s bureaucratic red tape and inconsistent policies deter investors. Establishing industrial parks with reliable power, tax breaks, and efficient logistics could draw manufacturers. The Lekki Free Zone is a start, but scaling such initiatives nationwide is essential.
Third, Nigeria must invest in human capital. Vietnam’s literacy rate, nearing 95%, and vocational training programs created a skilled workforce. Nigeria’s 60% literacy rate and underfunded education system limit industrial growth. Government-led programmes to enhance technical education and vocational training, particularly for youth, would prepare Nigerians for manufacturing jobs.
Fourth, Nigeria should focus on value-added industries. Vietnam transitioned from raw material exports to manufacturing electronics and garments. Nigeria’s reliance on crude oil exports leaves it vulnerable to global price shocks. Developing agro-processing, textiles, and consumer goods industries could leverage local resources like cotton and cocoa, creating millions of jobs.
Challenges remain, including corruption and insecurity, which deter investment. Vietnam’s stable governance and anti-corruption measures fostered investor confidence. Nigeria must strengthen institutions and ensure security to create a conducive environment. Additionally, regional integration through the African Continental Free Trade Area (AfCFTA) offers Nigeria a market of 1.3 billion people, amplifying export potential.
By emulating Vietnam’s deliberate industrialisation strategy—investing in infrastructure, attracting FDI, building skills, and prioritising value-added industries — Nigeria can become Sub-Saharan Africa’s manufacturing hub. This transformation could lift millions out of poverty, creating jobs and reducing inequality. The government must act decisively, learning from Vietnam’s success, to unlock Nigeria’s immense potential and secure a prosperous future.
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