The Senior Special Adviser on Industrialisation to the President of the African Development Bank, Prof. Banji Oyelaran-Oyeyinka, has stated that rural industrialisation is essential for transforming Nigeria from a consumption-based economy to a production-focused one.
Speaking at the Agriculture Summit Africa Conference in Abuja on Tuesday, he explained that prioritising production infrastructure and local markets would pave the way for Nigeria’s economic growth.
Delivering his keynote address, “Building a Production Nation,” Oyelaran-Oyeyinka highlighted the critical role of production in national prosperity.
He added that Nigeria must build the necessary infrastructure, foster rural industrialisation, and create markets for the goods produced.
Oyelaran-Oyeyinka explained that the journey from scarcity to security was straightforward, with industrialisation being the key to making it a reality.
He said, “This is not an abstract ideal; it is a pressing necessity. We cannot afford to continue living in a cycle of poverty. We must break free from this ‘Destitution Equilibrium’ and create opportunities for the rural poor to become active participants in the economy.
“As we move forward, let us commit to making the transition from scarcity to security by embracing the SAPZ model, improving our agricultural and industrial sectors, and investing in our people. The future is within our grasp—let us not waste this opportunity to create a more prosperous and equitable nation for all.”
He explained that Nigeria’s most urgent goal was rapid industrialisation-led growth, accompanied by the emergence of Secondary Cities where hundreds of firms, large and small, engage in the specialisation of niche products.
Oyelaran-Oyeyinka added that historically, the emergence of large firms and industrial clusters has always responded to the emergence of large markets, noting that to achieve security, production and markets are indispensable factors.
He revealed that the establishment of Special Agro-Industrial Processing Zones was a template for lifting the rural poor from poverty to becoming a market with significant spending power.
He explained, “Transforming the rural economy is a prerequisite for industrialisation. As we build production structures, we must build markets.
“This is why we are promoting the establishment of agro-industrial clusters known as Special Agro-Industrial Processing Zones.
“The SAPZ is designed to overcome the isolation faced by rural farmers, creating a network of human interactions and logistics. Clusters remove credit constraints and reduce the cost of investment in production technologies.
“The clustering process lowers capital entry barriers and enables more entrepreneurs to participate in non-farm production. The proximity of firms in a cluster also encourages inter-firm collaboration.”
Citing examples like China, the United Kingdom, and the United States, he explained that successful transitions to industrial economies involved linking small-scale rural production with larger industrial markets.
The Deputy Governor of Benue State, Dr. Sam Ode, representing Governor Hyacinth Alia, outlined Benue State’s ambitious plans to transform the agricultural sector and position Africa as a global food powerhouse.
“I stand before you as a representative of our state’s commitment to a future where Africa not only feeds itself but thrives through sustainable and innovative agricultural practices.
“There is a critical need for Africa to shift from raw material-based agriculture to value-added agricultural products.
“This transformation will boost job creation, economic growth, and food security across the continent,” he said.
He added, “Despite our vast arable lands and rich resources, Africa remains heavily dependent on food imports,” he noted.
“Over 40% of our food needs come from outside the continent. This is a paradox we must urgently address through strategic investments that create sustainable food systems.”