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GLOBAL VALUE CHAIN DEVELOPMENT AND STRUCTURAL TRANSFORMATION IN NIGERIA

GLOBAL VALUE CHAIN DEVELOPMENT AND STRUCTURAL TRANSFORMATION IN NIGERIA

 

Abstract: The rationale for value chain development and global integration in Nigeria is premised on several grounds. First, it is a viable lever for guiding the country’s economic transformation based on the experiences of many developing Asian countries whose structural transformation was spurred by exporting more diversified and sophisticated value added products. Second, it offers a solution to the current weak growth inclusiveness facing the country by addressing the unemployment and poverty challenges through increased job creation linked to the spectrum of activities along the value chain. Third, it assures sustainability of growth by de-linking the economy from fluctuations in commodity prices and weather conditions. Hence, understanding how Nigeria should position itself with a view to benefiting from developing value chain and ensuring effective integration and participation in the global value chain system is imperative. Despite these benefits, however, the country remains at the bottom rung of the global value chain (GVC) ladder. This paper articulates how developing value chain and breaking into the GVC could help achieve the nation’s structural transformation aspiration. The paper explores the great potentials that provide the foundation for GVC development, analyses the challenges, and outlines a framework to achieve this.

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