Nigeria is one of Africa’s largest economies, yet most of its valuable resources—like oil, cassava, and leather—are sold as raw materials. These raw products are then brought back as expensive finished goods. It’s like growing cocoa, selling it cheaply, and then buying it back as costly chocolate. The European Union (EU), however, has found smarter ways to manage its trade. Using tools called FIGARO indicators, the EU can spot opportunities, reduce waste, and create jobs. Nigeria could learn a lot by using similar strategies.
Take cassava, for example. Even though Nigeria is the world’s largest cassava producer, we still import cassava starch and ethanol. Why? Because we don’t process enough of it locally. By using methods like the EU’s, Nigeria could track cassava’s journey from farms to factories to markets. This would show where value is lost. Building local factories to process cassava could reduce imports, save money, and create many jobs in farming, manufacturing, and transportation.
The leather industry has the same problem. Sokoto’s leather is some of the best in Africa, but much of it is sold as raw hides, letting other countries profit by making shoes, bags, and jackets. Imagine if Sokoto became known worldwide like Italy for its leather products. With smart planning and investment, Nigeria could produce high-quality goods and grow a strong local industry that competes globally. Reports show that Nigeria’s leather industry could grow its contribution to the economy significantly if more leather were processed locally. This could open up new markets and create many jobs.
The EU’s approach to handling crises also provides lessons. When COVID-19 disrupted global trade, countries that relied heavily on imports struggled the most. Nigeria experienced this too, especially with medicine and food supplies. Tools like FIGARO could help Nigeria map out its import needs and develop local solutions, making the economy stronger and more self-reliant. For example, investing in local pharmaceutical production could reduce reliance on imported medicines and create a steady supply chain.
In technology, Lagos is already a center for innovation, but many startups still depend on imported software and hardware. What if we started making more of these products here in Nigeria? Imagine Nigerian-made apps and devices being used not just at home but across Africa and beyond. FIGARO-style tools could help identify where local tech production can grow and reduce the need for imports. Lagos’s tech ecosystem has already attracted significant investments, showing its potential to expand and compete globally if given the right support.
Unemployment, especially among young people, is one of Nigeria’s biggest challenges. Tools that analyze trade and production can show where investments can create the most jobs. Developing industries like Sokoto’s leather sector or Lagos’ tech scene could create work opportunities at every level, from factory workers to office professionals. These jobs would improve incomes and strengthen communities. For example, targeted investment in training and infrastructure for the leather industry could create thousands of jobs every year.
The environment is another area where Nigeria can learn. The EU uses its tools to make industries greener, and Nigeria could do the same. Cleaner production methods in industries like cement or manufacturing would not only protect the environment but also attract investors who care about sustainability. This would position Nigeria as a leader in eco-friendly development. Using renewable energy in factories could also help reduce emissions and lower production costs.
Discussions about Nigeria’s tax reforms, especially value-added tax (VAT) distribution, also show the need for fair policies. Some states believe they should keep more of the VAT they generate, while others argue for sharing funds more equally to support essential services. Using data-driven tools like FIGARO, Nigeria could analyze how VAT is generated and spent. This would help ensure that productive states are rewarded while less-developed ones still get enough support for schools, hospitals, and roads. A balanced approach could build trust among states and encourage all regions to boost their economic activities.
The EU’s success shows what is possible. Their experiences are detailed in a report called Macroeconomic Globalisation Indicators Based on FIGARO, available on the Eurostat website. Nigeria can adapt these strategies to fit its own needs, improving trade policies and creating fair tax systems.
Nigeria has the resources, talent, and potential to grow industries that compete globally and improve lives locally. By keeping more value within the country, creating jobs, and designing smarter policies, Nigeria can turn its potential into real prosperity. The time to act is now. Let’s show the world what Nigeria is capable of.
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