Nigeria is ranked 8 on the AfDB’s African Industrialization Index

On the African Industrialization Index, which was published by the African Development Bank (AfDB) Group in November 2022, Nigeria is ranked eighth.

South Africa, Morocco, Egypt, Tunisia, Mauritius, Eswatini, Senegal, Nigeria, Kenya, and Namibia are the top 10 nations in the index, in that order.

Nigeria was 10th in 2010 with a score of 0.5766. Nigeria was tenth in 2011 with a score of 0.5792. Nigeria placed 11th in 2012 with a score of 0.5817. At 0.5901, the nation received a ranking of 13 in 2013. The nation had a 2014 ranking of 7 with a 0.6207. With a score of 0.5991, the nation was ranked 10th in 2015.

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Nigeria placed 17th in 2016 with a score of 0.5635. With a score of 0.5734, the nation came in at number 15 in 2017. Nigeria placed 12 in 2018 with a 0.5921 score. Nigeria placed ninth in 2019 with a score of 0.6133. Nigeria placed ninth in 2020 with a score of 0.6122. Nigeria placed eighth in 2021 with a score of 0.6046.

Senegal, Nigeria, Cote d’Ivoire, Ghana, and Benin are the industrially most developed nations in West Africa. Senegal and Nigeria are among the top 10 nations in the index out of the 15 nations in the area. Due to their significant coastal economies and persistent growth, Côte d’Ivoire and Ghana consistently outperform the rest of the world. Expanding economic integration benefits West Africa.

Industrialization objectives

The AfDB score indicates that the wise application of trade policy provides critical instruments for African countries to meet their industrialisation goals. Which are:

• Industrial parks and special economic zones can support connections between business and industry. They can aid in the development of new export-oriented industries by providing incentives including tax cuts, advantageous customs regimes, government subsidies, and tailored infrastructure.
• The use of tariffs can increase domestic output. According to the index, the Nigerian government is using its tariff policy to support the resurgence of the automotive sector in the nation by increasing taxes on fully completed cars and cutting them on component parts. According to Nigeria, the assembly sector may result in up to 70,000 direct jobs and 200,000 indirect jobs.
• Barriers to industrialisation are intimately correlated with non-tariff trade restrictions. Policy in other areas is improved by addressing issues with infrastructure, skills, and finance access.
• Increased economies of scale, diversity, and value addition may be made possible via intraregional commerce. The AfCFTA has the potential to increase commerce between African nations by 52.3%, with industrial commodities leading the way.

The AfDB also mentions several current circumstances that might aid in the industrialisation of Africa in the report. Which are:

• Africa has had remarkable growth over the past 20 years, which is a reflection of the continent’s rising stability and good governance.
• Africa will have the greatest labor pool in the world by 2050 and has the youngest population of any continent.
• For both domestic and international investors, Africa is becoming a more desirable location for investments.
• Because the Africa Continental Free Trade Agreement has been ratified, Africa is rapidly integrating its economy (AfCFTA).

According to the AfDB, a $100 million senior loan has been approved for Indorama, a Nigerian fertilizer firm, in order to boost its capacity for production, create jobs, and pursue export markets.

Through out-grower programs, the loan has benefited over 330,000 farmers and generated 9,000 construction employment and over 500 long-term jobs. In addition to increasing exports, the programs encourage increased fertilizer use, removing one of the key obstacles to Nigeria’s agricultural development.