
Africa’s economic giant, Nigeria has set the tone toward
industrialization with a blind eye to some challenges. Demands for
organizations to embrace new technologies in industries for example automation
and artificial intelligence AI is a matter of mimicking what is currently being
done by developed markets such as China, Denmark, Sweden, Norway, Finland,
Iceland and Germany. However, for a developing economy like Nigeria, such
recommendations pose the danger of not hitting important developmental
landmarks, particularly the labour-intensive industrialization phase. Much as
this article seeks to look at how Nigeria can start using technology and
innovations in its industrialisation process, it will need to do so in a manner
that sustains its economy and doesn’t render its workforce useless.
The Role of Industrialization in Economic Development
Industrialization has always played an important role in
being an economic development characteristic in most countries in the world.
Collectively, such nations as China, Denmark, Sweden, Norway, Finland, Iceland
and Germany made their nations great by both manufacturing or assembling
products and enhancing technology as they progressed. Industrialization is identified
to contribute 20-30% to GDP increase in emerging markets mainly in
manufacturing and mining and agriculture products.
However, in Nigeria which has a seventy per cent labor
participation rate, an early rush to automation exposes millions of workers especially
those in manual and semi-skilled positions to job losses. The Nigerian economy
highly relies on its informal economy, which is estimated to have more than 80%
of the Nation’s labor force as reported by the National Bureau of Statistics
(NBS). The idea is that for many of them, such as those implementing broader
changes like full-scale automation without moving people into new sectors and
occupations – the same process is catastrophic.
The Case for Balanced Technological Adoption
Rather than considering technology as a substitute for labor
it should be considered as an enabler. This is the core potential of extending
current modes of production through polishing existing industries and processes
without expunging the workforce. This is how countries like China have
successfully employed the incorporation of technologies in their economy.
China, on the other hand, has recently encouraged the application of AI and
automation technologies, and on the other hand, it does not cease to take
advantage of its enormous manpower advantage the attraction of global
manufacturing contracts. This approach has made it easy for China to increase
production efficiency without compromising employment chances in a big way.
For Nigeria, the challenge is clear: to industrialize
without undermining the existence of millions of workers in the factories.
Instead of going in for quick robotics adoption, Nigeria should take the more
incremental path of technology adoption that will uplift productivity without
the risk of leaving its people unemployed. This would enable the economy to
grow through advancement that is in equal proportion to the employment status
in the market.
Technology and Innovation to Support Industrialization
Indeed, there is immense potential for the application and
deployment of technology to drive industrialization in Nigeria but needs to be
systematic based on the current level of development in Nigeria. Below are some
key areas where technology and innovation can be implemented in Nigeria’s
industrial sector:
1. Refining Existing Manufacturing Processes
However, since it is not feasible for Nigeria to go for
full-blown automation, the best thing that the nation can do is to enhance its
existing manufacturing industries. This presupposes the introduction of new
machinery for production, but in a manner that is supplementary to the efforts
of human labor. Here, the experience of China in industrialization may be used
as an essential lesson. Currently in China automation is applied to increase
the efficiency of some processes while still relying on manpower in the
manufacturing line. Nigeria could apply the same approach to other sectors such
as the textile manufacturing sector, agriculture and especially the food
industry.
2. Digital Transformation in Logistics and Supply Chain
There’s one industry where Nigeria will make a lot of profit
by implementing different technological solutions while not using them to
replace the staff: logistics and supply chains. An analysis of big data and
cloud computing helps to enhance the supply chain by giving minimal leakages
and making efficient delivery systems. This does not lead to job deletion,
though: it optimizes the work in the supply chain, making it quicker and better
suited to respond to trends in the market.
Also, McKinsey & Company highlighted that, logistics
operations that manage to integrate digital tools in their processes,
experience a planned productivity cut of 15-20%. For a country like Nigeria
that experiences high operation costs that hamper the growth of the industrial
subsector, such innovations would go a long way.
3. Technology in Agriculture
The National Bureau of Statistics reveals, that agriculture
is still one of the most dominant sectors of the economy in Nigeria with about
70% of the population dependent on this sector for employment. Applying smart
irrigation, drones in crop monitoring, and AI-driven tools for soil nutrient
analysis will also increase productivity greatly. Nonetheless, rather than
fully or partly replacing human factors of production, these technologies
should complement the efforts of the farmers. Such an approach has made it
possible to maintain the labor force and at the same time accord, it benefits
which include increased productivity.
4. Small-Scale Manufacturing Hubs
The Nigerian government should follow the examples practiced
by China in the establishment of special economic zones SEZs that are mostly
proven models for innovative manufacturing and export. The Nigerian government
should emulate this by creating similar areas where manual work complements
technological one. Such zones could be established to orient the workforce on
new technologies so that they acquire the competencies needed for deployment
even as these enhance their employability. This will over time help to create
Nigeria’s labor market for the future when technology will be more dominant.
5. Educational Programs and Skill Development
Industrialization comes with some requirements which are
important facets of human capital development. The approach Nigeria is adopting
through the use of increased technology in the country has to go hand in hand
with education and skill developmental programs. This helps to guarantee that
when the transformation is occurring in industries, workers are not left out
for the change all the time. The industries should provide vocational training
in technology management as well as operations and maintenance of machines so
that the workers can be trained to undertake other skilled jobs as industries
continue to embrace modern technology.
Challenges and Risks of Rapid Technological Adoption
On the one hand, the potential of technology is huge; on the
other hand, it is crucial to consider the costs of the premature introduction
of automation and the corresponding risks associated with the lack of economic
and labor transformations. Oxford Economics’ study indicates that the fast pace
of automation could result in over 23 million job losses across the world by
2030. In a country like Nigeria for instance, where today’s unemployment rate
is above 33% as defined by the National Bureau of Statistics (NBS) 2021, the
implications are disastrous should they not be well handled.
Moreover, Nigeria’s purchasing power per capita has not been
as high as an advanced economy where big-scale automation has been more
possible like in the United States. Hence, the Nigerian government requires
sensitising itself to the need for a more gradual approach to the use of
technology to avoid burdening the affiliated businesses with the costs of
improving the use of technology.
The Path Forward: Gradual, Inclusive Industrialization
When Nigeria is looking at how it can industrialize and increase
the strength of its economy the question should not be how many technologies
can be developed to automate different endeavors but how much manpower should
be incorporated into these endeavors. Here, the fundamental principle is the
optimal combination of the two approaches, skill enhancement and integration of
employees. As a result, not only will the jobs be preserved but the industries
will improve and turn into more efficient market players on an international
level.
For purposes of this discussion, Nigeria may look at
examples from other countries and learn that it does not have to tread the same
path as others but can create its industrialization that will encourage
innovative skills while at the same time creating employment for its citizens. A
well-planned and systematic integration of technology into the economy will
enable Nigeria to move to the production base without losing its manpower and
the possible creation of a two-tier economy.
Conclusion
Nigeria is currently in a critical stage of its possible
industrial evolution. Even as technology avails monumental opportunities for
enhancing productivity and innovativeness, the country has to be very cautious
not to plunge headlong into automation at the expense of employment
opportunities. Instead, a smooth, dual, integrated approach is required to
transform existing processes, adopt technologies and embrace people. By so
doing, Nigeria can unlock the productivity factor through technological
advancement without losing the much-needed workforce in the industrialization
process.
There should shift in the country’s development towards the
type of industrialization that should incorporate manpower and technology in
the real sense of the discussion in order to nurture and shape a sustainable
future for the nation.