By Newspot Nigeria Editorial Desk
There is a global economic shift underway—loud enough for serious nations to hear, but quiet enough for Nigeria’s policymakers to keep ignoring. The resurgence of industrial policy—a blend of government subsidies, targeted incentives, and sector-specific investment strategies—is no longer a theory in textbooks. It is today’s global economic playbook.
A recent analysis by McKinsey & Company revealed that industrial-policy measures have nearly quadrupled worldwide since 2017. Countries once allergic to government-led economic interventions are now deploying billions of dollars to shore up key industries—especially in defense, semiconductors, green energy, and high-end manufacturing.
This trend isn’t about ideology. It’s about survival in a world where geopolitics is now shaping supply chains, and national security is being defined by who controls microchips, batteries, and steel.
And what is Nigeria doing?
Our government continues to fumble with outdated tools—occasional tax holidays, unclear investment codes, and sluggish implementation. We speak of “ease of doing business,” yet give no structured support to local manufacturers in sectors that matter. We promote digital start-ups, yet leave the backbone industries—like steel, energy, and precision manufacturing—to rot.
Take India for example. Its government covered over 70% of capital costs for Micron’s chip plant in Gujarat. The United States awarded $7.9 billion in grants through its CHIPS Act to companies like Intel. Even Poland locked down a $1.9 billion European Commission investment for a semiconductor assembly plant. These are not giveaways. They are calculated strategies tied to long-term national competitiveness.
The McKinsey report highlights three steps that governments and companies must take to stay competitive:
- Scan the full landscape of available incentives, across sectors and regions.
- Evaluate the durability of these incentives to ensure they support resilient long-term investments.
- Benchmark support levels and industrial outcomes against global competitors.
If Nigeria applied these steps today, we would discover how far behind we are.
We cannot keep pretending innovation will rise out of thin air. It won’t. Nigerian ingenuity needs scaffolding. That scaffolding is industrial policy—smart, focused, consistent, and corruption-free.
Yes, we must attract foreign direct investment. But we must also build domestic champions in battery technology, hydrogen energy, electric mobility, and semiconductors. Our youth population is a strength—but without structured investments in industries of the future, we are merely exporting brains while importing all the finished goods.
Industrial policy is not about over-planning the economy. It is about shaping national destiny. China understood this early. So did South Korea. Germany is now amending its constitution to pump billions into defense manufacturing. The question is: Will Nigeria continue watching from the sidelines?
We’ve missed economic revolutions before—telecoms, industrial automation, even textile production. The fourth industrial revolution is already halfway through. Another miss will not just be unfortunate; it will be inexcusable.
Nigeria needs a strategic, transparent, and results-driven industrial policy. Anything less is national negligence.
—Newspot Nigeria Editorial Board
This editorial reflects the collective position of Newspot Nigeria’s editorial leadership on urgent economic issues.
Source:
Levy, C., Watters, M., Singhal, S., & Ivers, J. (2025, May 16). From protection to promotion: The new age of industrial policy. McKinsey & Company. https://www.mckinsey.com/industries/public-and-social-sector/our-insights/from-protection-to-promotion-the-new-age-of-industrial-policy
