Olusegun Obasanjo - Industry

Industry

Industrialisation, which had grown slowly after World War II through the civil war, boomed in the 1970s, despite many infrastructure constraints. Growth was particularly pronounced in the production and assembly of consumer goods, including vehicle assembly, and the manufacture of soap and detergents, soft drinks, pharmaceuticals, beer, paint, and building materials. The government invested strongly in infrastructure from 1975 to 1980, and the number of "parastatals" — jointly government- and privately owned companies — proliferated. The Nigerian Enterprises Promotion decrees of 1972 and 1977 further encouraged the growth of an indigenous middle class.

Heavy investment was planned in steel production. With Soviet assistance, a steel mill was developed at Ajaokuta in Kogi State, not far from Abuja. Agriculture and associated projects generally declined, although the government undertook large-scale irrigation projects in the states of Borno, Kano, Sokoto, and Bauchi with World Bank support.

The oil boom revenues led to a rise in per capita income, especially for the urban middle class. Inflation, particularly in the price of food, promoted both industrialisation and the expansion of agricultural production. With the government encouraging food crops, the traditional export earners — peanuts, cotton, cocoa, and palm products — declined in significance and then ceased to be important at all. Nigeria's exports became dominated by oil.