Glocalising Nigeria: Path to Economic Resilience and a Stronger Naira

Nigeria is looking to transform its economy by focusing on glocalisation, which involves maximizing local resources and production while integrating into global markets. Key industries like textiles, technology, agribusiness, and manufacturing present opportunities for growth. Successful glocal strategies from countries like China, India, and Brazil serve as valuable lessons. Government and private sector alignment on infrastructure and incentives is crucial to drive this change and strengthen the naira.

Nigeria is envisioning a transformation where local industries not only survive but flourish through integration with global markets. This vision, referred to as “glocalising Nigeria,” aims to enhance industries such as textiles, technology, and agriculture. For instance, local textiles made from Nigerian cotton could compete on international platforms, while the technology sector aims to provide software solutions for both local and global clients in fintech and beyond.

Historically, Nigeria led the continent in textiles, with cities like Kaduna and Kano thriving during the 1970s. The textile sector contributed over 25% to GDP, but inconsistent policies and infrastructure decay caused its decline. Nowadays, Nigeria faces significant import bills, including $4 billion worth of textiles annually, illustrating the need for strategic industrialization and innovation from both public and private sectors.

Other nations have successfully implemented glocal strategies: China maximized its manufacturing capacity while integrating into global supply chains, leading to significant contributions to the global economy. India hosted a thriving IT and pharmaceutical industry, showing local expertise can meet international demand. Brazil utilized its agricultural strength to dominate global markets, demonstrating how targeted investments in research and policy can reshape an economy.

Focusing on glocalization could significantly reshape Nigeria’s economy, identifying high-potential sectors as follows: The textile industry has the opportunity to revitalize job creation and reduce imports, while the technology sector can enhance its global competitive edge through local innovation. In agribusiness, shifting focus from raw exports to processed goods can boost revenue. Additionally, manufacturing policies can accelerate growth, aiming for a GDP contribution increase from 9% to 20%.

To initiate these changes, aligning government and private sector initiatives is crucial. This includes investing in infrastructure, incentivizing local production with financial support, leveraging trade agreements such as AfCFTA, and promoting public-private partnerships for industrial expansion.

A stronger local value chain can cut down imports and improve the naira’s value. Nigeria currently faces over $47 billion in annual imports that could be sourced locally. By fostering demand for domestically produced goods, Nigeria can attract foreign investment and achieve economic resilience. The global success stories of China, India, and Brazil show that a blend of local focus with global aspirations can lead to economic transformation, and Nigeria stands at a pivotal moment to implement such changes.

Nigeria has the opportunity to harness its local resources and expertise to build a resilient economy through glocalisation. By reimagining industries like textiles, technology, agribusiness, and manufacturing, Nigeria can create jobs, reduce import dependency, and strengthen the naira. This transformation will require strategic government support and private sector innovation, and focusing on local production while aiming for global competitiveness is essential for success.

Original Source: businessday.ng