- Suggests industrialization as an imperative for national economic boom
SAMPSON ENYONGEKERE, UYO
A shrewd and globally revered energy expert, Engr. (Dr.) Wisdom Patrick Enang has identified industrialization as the most viable path to unlocking Nigeria’s economic potential.
Dr. Enang proffered the opinion on Friday, August 15, while speaking with newsmen in Uyo, the Akwa Ibom State capital.
While presenting his opening address, the erudite scholar stressed that without a shift from consumption to production, Nigeria will remain trapped in slow economic growth and import dependence.
He further maintained that the country’s economic renaissance hinged on building a strong industrial base capable of creating jobs, boosting exports, and driving inclusive prosperity.
“Historically, Nigeria has struggled with deindustrialization, over dependence on imports, and limited value creation in key sectors”, he averred.
Enunciating further, the Adjunct Professor of the North Dakota University (USA) averred that industrialization offers a strategic solution to the challenges in context by unlocking the country’s manufacturing potential, enhancing productivity, and strengthening linkages across sectors like agriculture, extractives, and services.
Dr. Enang also explained that Nigeria’s manufacturing sector has faced years of decline, constrained mainly by poor infrastructure and inconsistent policies.
“Reversing this trend requires coordinated action between the government and the private sector to build competitive industries anchored on innovation, local content, and technology adoption.”
The Akwa Ibom born, British trained Chartered Engineer equally noted that industrialization was not just about building factories, but about creating a national ecosystem of productivity where skilled labour, reliable infrastructure, access to finance, and supportive policies work harmoniously together.
He harped passionately on modernizing Nigeria’s industrial policy; supporting small and medium enterprises; integrating value chains in agribusiness, mining, and pharmaceuticals; and leveraging Fourth Industrial Revolution technologies.
“This will establish the three strategic pillars of reforms, resilience, and results, with a focus on improving power supply, streamlining business regulations, facilitating trade, and investing in human capital, all of which are imperative for Nigeria’s transformation into West Africa’s industrial powerhouse.”
According to the renowned policy strategist, the call for action is highly exigent as Nigeria’s fiscal stability faces renewed pressure from declining global oil prices, with heightened risk of a wider budget deficit and higher borrowing needs.
“Brent crude has been sliding in recent weeks, trading below the Federal Government’s 2025 budget benchmark of $77.96 per barrel.”
“This decline is driven mainly by weaker global demand expectations and geographical tensions that have clouded the energy market outlook.”
On the domestic front, Dr Wisdom Enang informed that crude output averaged at about 1.5 million barrels per day (bpd) this year, explaining that while this marks an improvement from last year’s levels, it remained short of the 1.78 million bpd target in the budget, and well below the aspirational 2 million bpd figure that the federal government has repeatedly set as a goal.
While expatiating further on why crude oil prices are declining, the renowned Fellow of both the Nigerian Society of Engineers (FNSE) and the Nigerian Institution of Safety Engineers (FNISafetyE) intimated that of recent the OPEC+ cartel was unwinding production cuts faster than planned in order to retain market share, invariably adding 2 million bpd to global supply in the second half of 2025.
He also informed that this, combined with non-OPEC growth was swelling global crude inventories to levels that have historically driven 25-50% price drop, even as he stressed that weak demand and rising trade tensions has curbed consumption and slowed global economic growth projections.
“The uncertainty from tariff threats and geopolitical flashpoints are also disrupting various markets, coupled with the U.S. tariff threats over Indian-Russian oil imports, and broader trade policy shifts that is fuelling market risk aversion.”
According to the highly revered energy guru, Brent is expected to average at $67.84 in 2025, possibly falling to $63 by mid 2025.
While positing thoughts on how Nigeria can navigate the raging economic storm, the Ethical and Attitudinal Reorientation Czar highlighted that since assuming office in 2023, President Bola Tinubu has implemented several market-oriented economic reforms aimed at boosting government revenue and improving fiscal discipline.
“The removal of fuel subsidy has been the most notable, which ultimately unlocked funds for the Federation Account Allocation Committee (FAAC) to distribute to States and the federal government, resulting in record high monthly FAAC disbursements.”
“Currency reforms and operational changes at the Nigerian National Petroleum Company Limited (NNPCL) have also been introduced, resulting in significant gains in oil output.”
On the possibility of leveraging taxation as a panecea to funding shortfalls, Dr. Enang explained that whilst the federal government was optimistically banking on the newly enacted Tax Reform Act to boost non-oil revenue and reduce dependence on crude, with Nigeria’s tax-to-GDP ratio still at just 9% which is one of the lowest globally, the scale of additional tax revenue in the short-term may be insufficient to offset oil-induced shortfalls.
“Lower oil receipts could also have knock-on effects beyond fiscal balance as oil revenues account for the bulk of Nigeria’s export earnings, and a significant share of federally collected revenue.“
“The situation is further exacerbated by the N13 trillion budget deficit projected in Nigeria’s 2025 appropriation bill, and the subsisting N149 trillion public debt.“
“Debt servicing already consumes a large portion of government income. While recent reforms have eased the debt service-to-revenue ratio, these improvements could be reversed if oil earnings fall short for an extended period.“
“Reduced dollar inflows may pressure Nigeria’s foreign exchange reserves, limit the central bank’s capacity to stabilize the Naira, and further compound imported inflation.“
“If crude prices remain subdued and output fails to pick up, Nigeria could face the unwelcomed combination of wider fiscal deficit, higher debt servicing costs, and tighter foreign exchange liquidity, a scenario that risks slowing economic growth.”
According to the multiple excellence award winner, the path forward will depend on three key factors amongst them, global oil market trends.
“Recovery in global crude prices could ease fiscal strain. Similarly, sustained improvement in security and infrastructure at oil producing sites is critical to lifting output closer to target.”
He also emphasised that the success of tax reforms and economic diversification efforts will determine how quickly Nigeria can reduce its vulnerability to oil price swings.
“Without progress on at least two of these fronts, the Tinubu administration may be forced to rely more heavily on domestic and external borrowing to finance its spending plans, a move that could raise debt servicing costs and test investor confidence.“