The Senior Special Adviser to the President on Industrialization at the African Development Bank Group, Prof. Oyebanji Oyelaran-Oyeyinka, said Nigeria and Africa must develop strong technological capabilities to effectively participate in global markets.
Oyelaran-Oyeyinka, who also serves as a professor at the United Nations University in the Netherlands, made these remarks during his address at the third International Conference of the School of Management and Social Sciences at the Lead City University, Ibadan.
The theme of the conference was “Digital Transformations in Economic, Business and Socio-Political Outcomes on the African Continent”.
He noted that in assessing Nigeria’s readiness for digital transformation, he used data sets such as the Network Readiness Index and the Global Innovation Index, which measure countries’ readiness in industrial and technological sectors.
He explained, “The Network Readiness Index ranks 134 economies across 60 variables, categorized into four pillars.”
He then elaborated: “According to the Network Readiness Index, the top 10 countries are Sweden, Denmark, Singapore, the Netherlands, Switzerland, Finland, Norway, the United States, Germany and the United Kingdom. No African country is among the top 60 countries in terms of NRIs, nor among the top 51 countries using the Global Innovation Index. These top performing countries in the GII include Switzerland, Sweden, the United States of America, the United Kingdom, the Netherlands, Denmark, Finland, Singapore, Germany and the Republic of Korea.
He further stressed, “Nigeria does not rank among the top ten African countries because of its low scores on the four pillars: Technology (88), Knowledge (96), Governance (114) and Impact (116).
Oyelaran-Oyeyinka added, “Clearly, meaningful participation in global markets, including the high-tech sector of the Fourth Industrial Revolution, requires a strong technology base capable of incorporating digital technologies. Manufacturing forms the backbone of the infrastructure and systems that drive the Services sector, in which digital transformation is an integral part. Without achieving a certain level of developmental transformation, full participation in the new knowledge economy is almost impossible, relegating countries to peripheral roles.”
He stressed the critical importance of industrial policy, which involves government interventions to achieve outcomes beyond what the market could achieve on its own.
“Governments must invest in human capital and infrastructure to promote the growth of industries and promote technologies that drive economic growth,” he noted.
He explained this with a recent example, stating: “President Biden’s White House recently implemented one of the most ambitious industrial policy programs in decades. The strategic goal is to revitalize manufacturing sectors that have lagged in the US, largely due to international competition.”
Oyeyinka also said that Nigerian and African governments are currently focusing on the electric vehicle market. However, he advised Nigeria to rather tap into its own and Africa’s vast resources to set up electric vehicle manufacturing plants.
“In other words, there has been a shift from manufacturing to ‘smart’ manufacturing as an evolutionary strategy, not a leapfrog strategy. African countries would do well to study how successful industrial policies adopt features of smart manufacturing activities to restart their industrialization processes,” he concluded.
Furthermore, Prof. Kabiru Adeyemo, the Vice President, highlighted the importance of digital transformation in Nigeria, noting its potential to catalyze rapid economic progress.
He explained that the conference will initiate further discussions on digital transformation and implementation.
Adeyemo said, “However, to fully realize the potential of digital transformation, we need to address issues such as digital literacy, infrastructure development and regulatory frameworks. Ensuring that our education systems equip the next generation with the necessary digital skills is paramount. Similarly, investing in strong digital infrastructure and promoting an enabling regulatory environment will be crucial to support the growth of digital economies. The digital transformation of financial business governance and its impact on socio-economic outcomes in Africa is a complex but exciting journey. It requires concerted efforts by all stakeholders, including governments, business, civil society and academia.”
The Deputy Vice-Chancellor, Prof. Omolara Campbell expressed his appreciation for Oyelaran-Oyeyinka’s insightful lecture.