Explain FIVE roles of industrialization in the economic development of Nigeria. – NABTEB QUESTION

Industrialization In Nigeria plays major roles towards economic development. Such roles include the following:

(i) Economic growth: Industrialization increase the Gross National product hence economic growth is guaranteed.

(ii) Reduction in the rate of unemployment: Industrialization creates employment opportunities to many unemployed Nigerians thus helping to reduce the rate of unemployment.

(iii) Industrialization increases the standard of living of the people by making greater quantities and varieties of goods and services available.

(iv) Diversification of the economy: industrialization in Nigeria removes overdependence on agriculture.

(v) Industrialization provides more foreign exchange earnings through exports.

(vi) Reduction in the inflation rate through the flooding of the market with more manufactured products.

(vii) Industrialization helps to correct deficit balance of payment in Nigeria.

(viii) Industrialization will expand the market for agricultural raw materials hence higher earnings for farmers.

(ix) Improvement in farming techniques: the industrial sector produces modern and more efficient machineries for agriculture such as ploughs, harvesters, silos etc. The sector produces fertilizers, herbicides and insecticides for the agricultural sector.

(x) Increase in government revenue: The manufacturing companies will pay taxes in form of royalties, excise duties or profit tax to the government thereby increasing government revenue.

(xi) Transfer of Technology: Industrialization enables Nigerians to acquire the necessary technical and managerial skills necessary for indigenous business ventures.

(xii) Industrialisation leads to the development of infrastructural facilities.