In an age where technology is thriving and economic activity is booming, Nigeria can take advantage of active participation in Global Value Chain to improve and sustain her economy.

1. PARTICPATION IN GLOBAL
VALUE CHAIN:
A STRATEGY FOR STEADY AND RAPID ECONOMIC GROWTH IN
NIGERIA
BY ANIEBIET-ABASI AKPAN

2. Nigeria is Africa’s Largest Populated
Nigeria is the 48th largest export economy
Nigeria’s GDP averages $400B per annum
INTRODUCTION
Nigeria is considered the Giant of Africa and about the 48th
largest export economy in the world. She has a population of
over 200 million people and a GDP of about $400B on the
average per annum (see figure in next slide), with an average
growth rate of about 2%.

3. Ever since oil was discovered in Nigeria by Shell-BP in 1956, the country
has lived and depended mostly on oil-generated revenue. This was made
possible by the influx of different crude oil mining and refining
companies that trooped into Nigeria by their numbers to explore the
newly found oil wells. However, the oil sector has not remain so
promising over the years and as a matter of policy, the government
sought to encourage participation in agriculture entrepreneurship.
Nigeria’s GDP from 2010 – September 2020, Source: TRADINGECONOMICS.COM | WORLD BANK

4. Nigeria has some significant level of participation in international trade over the
years with crude oil ranking as her major international trade commodity. Taking
advantage of her unique resources, she has been able maintain some comparative
trade advantages and consistent participation in international trade and as at 2018
was the 48th largest exporting country in the world. See table:

5. GLOBAL VALUE CHAIN
• Nigeria exports more of crude oil and imports more of refined
petroleum (see table in last slide).
• Nigeria building refineries to maximize its crude oil opportunity.
• This paper recommends effective participation in Global Value Chain.
• GVC breaks up the production process across countries
Global Value Chain (GVC) simply refers to the participation of different firms in different
countries of the world in creating utility (i.e. production or value). As defined by the World Bank
Development Report (2020), GVC breaks up the production process across countries. Firms
specialize in a specific task and do not produce the whole product, thereby establishing an
interdependence among these firms across the countries of the world towards creating a
specific product. A simple illustration is the process of creating a phone, instead of have it all
produced in China, Germany could produce the screen, China produce the battery, Nigeria
produces the boards and it is coupled in USA. By so doing, each country focuses her strength in
what she does best and becomes efficient in it.

6. PROBLEM
The Nigerian economy faces the
challenge of limited economic
transformation and diversification.
This is evident from the country’s
specialization in less dynamic and
low value added domestic activities and
trading in the global system. (Eric, 2014)
Fluctuating GDP Levels and
economic debts
High unemployment rate & low
living standards
Under-utilization of human &
natural resources
• Nigeria has depended greatly on revenue from crude oil and have attempted
refining same locally which appeared unsuccessful.
• Few years ago, a ban was placed by the government on importation of rice, with the
aim of encouraging the production of rice locally which appeared inefficient.
• Active participation in GVC can ameliorate most of these challenges.

7. OBSTACLES
Several factors impedes Nigeria’s
participation in GVC which include
(but not limited to): weak political
systems, poor educational systems,
poor policies and institutions etc.
Particularly, trade policies and
political systems have a huge
impact on participation in GVC.
More so, little or poor awareness of
the advantages of GVC among
policy makers and the inclusion of
GVC in educational learning
curriculum also limits participation
in GVC.
Weak Political Structure
Poor Educational System
Poor Trade Policies

8. ACHIEVING ACTIVE
PARTICIPATION IN GVC
In order to achieve active participation in GVC, Nigeria must eradicate corrupt political
leaders and encourage economic leaders who are knowledgeable in policy making. Policies
that encourage trade ties with other countries of the World (not just Africa) should be
encouraged and certain trade contracts should be signed.
The educational curriculum should be absolutely updated to include global learnings
especially on economic matters like GVC. Investment in education should be topmost and
encouraged. By optimizing her natural resources and improving (or developing) her human
capital, Nigeria can be better position to take advantage and effectively manage her
participation in GVC.
Eradicate Corrupt
Leaders
Invest in
Education
Encourage
Trade Ties

9. CHALLENGES IN IMPLEMENTING
ACTIVE PARTICIPATION IN GVC
• Several challenges may be encountered in achieving active participation
in GVC for Nigerians.
• Firstly, there is a low technological and human skill; this could however be
surmounted by investment in human capital development.
• Secondly, poor regulatory and institutional framework for producing
goods with high quality that can meet global standard.
•
• Thirdly, poor infrastructural facilities like good road, communication etc.
• Fourthly, inadequate intellectual property rights protection to promote
and encourage upcoming firms.

10. RECOMMENDATION
Participation in GVC for Nigeria is an effective tool for economic
development and sustained growth.
As observed by Eric (2014), several justification for Nigeria’s participation in
GVC are: viability as a lever for guiding the country’s economic
transformation; potency for addressing the growth inclusiveness challenge
facing the country; and effectiveness in driving sustained growth through
delinking the economy from fluctuations in commodity prices and weather
conditions.
THANK YOU!
References:
• Trading for Development in the Global Age of Value Chain (WDR 2020)
• Global Value Chain Development and Structural Transformation in Nigeria (AFDB 2014)