A financial expert and Special Advisor to the African Development Bank (AfDB) President, Professor Banji Oyelaran-Oyeyinka, has identified Nigeria's overreliance on oil and lack of economic diversification as the primary reasons for the country's unsuccessful industrialization efforts.

Oyelaran-Oyeyinka made these observations during a lecture delivered at the School of Economics and Political Science on Wednesday, where he presented a paper titled "Divergent Outcomes: Asia and Africa Development Strategy."

In his presentation, the professor examined how four Asian countries—Vietnam, Indonesia, Malaysia, and Bangladesh—successfully transformed key sectors including agriculture, manufacturing, and textiles into competitive, export-oriented industries. He contrasted this with Nigeria's economic stagnation despite having similar resources and initial conditions.

Three Major Causes of Nigeria's Underperformance

According to Professor Oyelaran-Oyeyinka, Nigeria's industrial challenges stem from three major factors: the failure to transition from resource dependence to diversified industrial production, vulnerability to shocks from volatile oil-based revenues, and persistent gaps in political leadership and institutional capacity.

"Industrialisation does not occur by accident," the AfDB advisor emphasized. "It requires deliberate action, visionary leadership, and sustained investment in education, technology, and long-term policy planning."

He noted that countries that made early investments in these areas were able to build competitive economies that successfully navigated external shocks while maintaining steady growth. Nigeria, however, has struggled due to its continued dependence on commodity exports and importation of finished goods, which has hindered the development of a robust industrial base.

The lecture was based on his book, "Reversal of Fortune to Economic Resurgence: Industrialisation and Leadership in Asian Prosperity and Nigeria's Regress," co-authored with Dr. Oyebanke Abejirin.

As Nigeria continues to seek pathways to economic diversification and industrial development, Professor Oyelaran-Oyeyinka's analysis provides important insights into the structural changes needed to achieve sustainable economic growth beyond the oil sector.