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Building nigerian heavy industry; Perspectives from brazil

In today's world, everything seems to flow smoothly. Technology changes almost every day with an increasing efficiency in the production of goods. This efficiency which has emerged from industrialization is necessary for the growth of any economy in the world. The use of industrial plants has led to more precise and accurate products while still having mass production. Cities with industrial plants have become centralized and have attracted more population from all over the country and possibly even from other countries through the transaction of foreign companies building plants in Nigeria. Industrialization has become the key element for economic growth and development in all the developed countries of the world, and it’s absence in a developing country like Nigeria has caused a major setback in the realization of its dreams as one of the world’s leading economies by the year 2020.There is no empirical evidence of any country that has achieved economic and social growth in isolation from industrialization thus the contribution that achieved with a manufacturing sector that contributes significantly to the GDP with a manufacturing value added of not less than 40 percent thus eliminating poverty vis a vis wealth creation.

Comparative analysis with the Brazilian industrialisation

From historical point of view, industrialization in Brazil suffered many setback attempts from its colonial days because of the economic principle of the Portuguese also called “Mercantilism” which was used to protect their products and their goods on sale in the Brazilian territory.

Brazil experienced a great depression during the 1930’s, a twenty year military dictatorship, series of political crisis. And then during the 1980’s there was a process of re- democratization which led to the Import- substitution industrialization (ISI) policy implemented with the intent to reduce foreign dependency through local production of industrialized products. The major focus by the Brazilian Government then was on the development of heavy industries. Since then till date rapid industrialization took place through a period that has seen Brazil’s GDP grown from $15.1 billion in 1960 to almost $1.6 trillion today making Brazil the world’s seventh largest economy by purchasing power parity.(Shah,2011)

"This rapid socioeconomic transformation..." says Werner Baer in his book 'The Brazilian Economy: Growth and Development' "...can be illustrated with a few numbers. In 1940 only 30 percent of the country's population was urban; by 1970 this proportion had increased to 56 percent, and by 1999 to 78 percent. The contribution of agriculture to gross domestic product (GDP) declined from 28 percent in 1947 to about 10 percent in the late 1990's (measured in current prices), whereas that of industry rose from not quite 20 percent in 1947 to about 36 percent in the late 1990s. After four decades of intense industrialization, Brazil was producing 2 million motor vehicles in 1997, 26 million tonnes of steel in 1997, 39 million tonnes of cement in 1998, about 7.8 million television sets, and 3.7 million refrigerators in 1997. It had over 58,000 megawatts of installed electric power capacity in 1998, and over 60 percent of its exports consisted of manufactured products. Its paved road network increased from 36,000 kilometres in 196 to close to 150,000 kilometres in 1999." Recent history (since 2001) has seen more than ten percent of Brazil's population rise out of poverty- and the nation adopt a driving posture in global economics and foreign policy.

In comparison to Brazil, Nigeria shared the same experience during the colonial days from Britain. The discovery of natural resources and raw materials which are in abundance could serve as a solid base for industrial development. Several attempts have been made by Nigeria to embark upon industrialization such as the import substitution and the structural adjustment program. But each failed to yield results and these on one hand was on the basis that both policies were at variance with each other and on the other hand the inconsistent government policies that are not sustained were being implemented.

Industrialization has fared well in Brazil with tremendous benefits in several production lines such as the indigenous car production (Troller) which also exported to other Latin American countries as well as Africa. The Brazilian automobile industry has a production of over 2.5 million cars as at 2010 (OICA reports, 2011), the production of aircrafts both for commercial and military purposes from its indigenous conglomerate Embraer, these and other productions all point to the commitment of the Brazilian government towards industrialization which has strengthened its economy making its economy one of the leading economies of the world.

Heavy industry development in Nigeria

Nigeria has abundant natural resources for a wide range of industries. These mineral resources are the primary raw materials for industrializations. Iron ore and a host of other locally available metallurgical raw materials are being utilized for the local iron and steel industry. Crude oil and natural gas are the basic raw materials for the petrochemical and fertilizer industries.

In addition to these heavy industries, the availability of a large number of minerals has supported a dynamic building and construction industry, the chemical industry, and the manufacture of glass, ceramic products as well as other manufacturing processes.

Nigeria exports tin, ferrous and non-ferrous minerals, as well as gem- stones. Common industrial minerals such as sand, clay, limestone and marble are intensively utilized. Bitumen and coal are also important. Inventory of these minerals as raw materials in Nigeria has been undertaken by the Raw Materials Research and Development Council since 1987, as part of the Federal Government's drive for the local sourcing of raw materials under the Structural Adjustment Programme.(Daily news articles, 2012)

However, for Nigeria to develop its heavy industries it is necessary for these mineral resources to be harnessed within the borders of the country with the full support of the Nigerian government focusing on building industries that produce goods not only for internal consumption but for exports as well. There is a tremendous growth potential for the mineral industry in Nigeria, to meet local demands and that of the Economic Community of West African States.

It is highly recommended that the Ajaokuta steel industry project which has till date been abandoned by several administrations due to several scandals and lawsuits between the Nigerian government and contractors involved be completed. This project would be a major landmark success if it is ever completed and would be the beginning of industrialization in Nigeria thus putting the country on course to achieving its vision by the year 2020.


Eghe Guobadia (2012) Industrializing the Nigerian economy. In; Business day online articles.

Werner Baer (2007) Brazilian economy: Growth and development 6th edition

Online Nigeria daily news (2012) Industrialization potentials. In; Daily news online articles.

OICA production statistics report 2011.” Organisation Internationale des Constructuers d’ Automobiles.oica.net

Charles Christopher I. (Нигерия), Т. Б. Иванова Российский университет дружбы народов (Москва, Россия)

Управление интеллектуальным капиталом. Материалы Международной научно-практической конференции (Екатеринбург, 27 апреля 2012 г.) Екатеринбург: Издательство Уральского государственного экономического университета, 2012.


Количество Статей в теме 'Коммерческий торговый представитель': 66