RURAL INDUSTRIALIZATION AND ITS ROLE IN PROMOTING NATIONAL DEVELOPMENT IN NIGERIA (1999–2020)

1.1 Background of the Study The Nigerian economy exhibits features typical of a developing nation with primary sector, especially agriculture, playing a dominant role and contributes over half of the country’s Gross Domestic Product (GDP). Within this structure, the oil and gas industry remains a significant economic pillar, accounting for more than 95% of Nigeria’s export earnings and over 85% of government revenue between 2011 and 2021. In terms of GDP, the oil sector contributed 14.8% in 2011 and 13.8% in 2021, and crude oil reserves increased from 36.042 billion barrels in 2011 to 37.119 billion barrels in 2021. However, the industrial sector—which comprises manufacturing, mining, and utilities—plays a much smaller role, contributing just about 6% to the economy, with manufacturing alone accounting for only 4% of GDP in 2011. This is despite numerous legislative initiatives over the past five decades aimed at spurring industrial growth (Tela, 2023). Since gaining independence from colonial rule in 1960, Nigeria’s primary challenge has shifted from combating colonialism to driving development. In response, successive administrations have formulated various development goals and long-term plans such as Vision 2000, Vision 2010, Vision 2015, and Vision 2020. Military and civilian governments alike have introduced different initiatives to place Nigeria on a path toward economic transformation. However, despite these efforts, Nigeria continues to struggle with developmental challenges. According to the United Nations Development Programme (UNDP, 2025), the country remains economically imbalanced, despite being rich in both human and natural resources. If Nigeria were able to harness and efficiently utilize these resources, it could emerge as a leading African nation and one of the top ten global economies. Unfortunately, due to outdated technologies and the underutilization of its vast resources, these developmental aspirations remain unfulfilled. Even though industrialization has been widely recognized as a vital means to achieve this objective, the level of industrial development in Nigeria remains relatively low. Contrary to common assumptions, development has taken place, particularly in urban centers. Urban areas continue to attract people due to better access to infrastructure and social amenities. However, this trend has left rural areas largely neglected. Many seem to forget that rural development is not just foundational but also essential to sustained national progress. Taiwo and Agwu (2024) argue that Nigeria’s rural economy is blessed with abundant natural resources that are yet to be exploited. Unlocking this potential requires integrating rural communities into development programs, especially through the promotion of small-scale enterprises in diverse sectors. This approach is essential because rural areas are often viewed as the backbone of sustainable growth, especially in developing economies. Lavanya, Hemalatha, and Indumathi (2024) note that rural regions serve as a major reservoir for wealth creation because a large portion of primary production activities—on which many other economic processes depend—originate from rural communities. Sundar and Srinivasan (2019) describe industrialization as the process through which humans adapt or transform their environment using various tools, methods, and knowledge to meet their needs and aspirations. Industrialization involves applying mechanical and scientific techniques to commerce and industry, encompassing a systematized body of knowledge that can be communicated, adapted, and applied practically. Thus, industrialization can be understood as the organized use of tools, skills, and scientific understanding to modify the environment for human benefit. The idea of driving rural development through industrialization stems from this understanding. Hence, the development of rural areas is vital to achieving long-term national growth. Saxena (2025) supports this view, identifying industrialization as a strategic development tool that can fast-track national progress. When properly embraced, rural industrialization can significantly improve the quality of life for individuals, families, and communities while maintaining economic and environmental balance. 1.2 Statement of the Problem Industrialization is a powerful development strategy that fosters substantial growth in both rural and urban areas. The establishment of industries provides multiple community benefits—creating employment opportunities, improving security, stimulating infrastructure development, and enhancing overall quality of life. Sharma, Chaudhary, Bala, and Chauhan (2020) affirm that expanding industrial activities in rural areas can reduce poverty and promote sustainable livelihoods for rural populations, thereby contributing to long-term national development. According to Das (2019), rural industrialization involves developing industries at the village level across diverse sectors such as agriculture, business, and manufacturing. This plays a crucial role in boosting economic growth. Viewed from both local and national economic perspectives, it represents a critical approach to alleviating rural poverty through industrial advancement (Li and Artz, 2019; Muhammad et al., 2025). However, while rural industrialization can be a transformative tool, it also poses potential risks to communities. For instance, the establishment of a cement factory in a rural area can result in environmental degradation. Dust pollution from limestone processing can render the surrounding land unsuitable for farming. Visible signs such as dust-coated trees and withering grasses point to declining agricultural productivity. Additionally, government policies can hinder industrial growth. For example, the privatization of state-owned enterprises often leads to job losses. This was evident when Benue Cement Company was sold to the Dangote Group; the new management brought in workers from outside the state, ignoring employees from the previous administration. This not only left many locals unemployed but also deprived them of owed wages. These challenges indicate that achieving successful rural industrialization requires addressing several barriers. Banerjee (2015) identified government policies—including licensing procedures, taxation, and tariffs—management inefficiencies (where one person may handle both production and administration in small firms), lack of access to market information, technological limitations, and marketing constraints as key obstacles to national development. It is against this backdrop that the current study seeks to examine the role of rural industrialization as a catalyst for national development in Nigeria, specifically focusing on the period from 1999 to 2020. 1.3 OBJECTIVES OF THE STUDY The broad objective of this study is focused on Rural Industrialization and Its Role in Promoting National Development in Nigeria (1999–2020). The specific objectives of this study are;- i. To ascertain the forms of industrialization which can promote rural development in Nigeria. ii. To highlight if rural industrialization promote human development in Nigeria. iii. To determine if rural industrialization enhances employment opportunities for rural communities. iv. To find out if rural industrialization be of significant impact on infrastructural development in rural communities. v. To examine the factors militating against rural industrialization towards promoting national development. 1.1 RESEARCH QUESTIONS The study will be guided by the following questions; i. What are the forms of industrialization which can promote rural development in Nigeria? ii. Does industrialization promote human development in Nigeria? iii. Does rural industrialization enhance employment opportunities for rural communities in Nigeria? iv. Does rural industrialization has significant impact on infrastructural development in rural communities? v. What the factors militating against rural industrialization towards promoting national development 1.5 RESEARCH HYPOTHESES Ho1: Rural industrialization does not promote human and materials development. Ho2: Rural industrialization does not enhance employment opportunities for rural communities in Nigeria, Ho3: Does rural industrialization has significant impact on infrastructural development in rural communities. 1.6 Significance of the Study This study is beneficial to the society investor rural dweller and it would serve as a efficiencies materials coming on the side of the rural dweller it will help in appreciating the department of natural resource available in rural setting is develop through industrialization process it will bridge the gap in rural urban migration. More so, the society as a whole stand to benefit from the study. The society is drawn from rural setting developing rural setting implies developing the society the implication being that the society standard of living would in prove employment will be generated and investment created means while policy maker through this study would understand why it necessary to promote industrial project they would also understand that the leadership efforts are needed to pioneer industrialization process. 1.7 Scope of the Study The scope of this study borders on Rural Industrialization and Its Role in Promoting National Development in Nigeria (1999–2020). The study further discussed forms of industrialization which can promote rural development in Nigeria and established rural industrialization promote human development in Nigeria, determine if rural industrialization enhances employment opportunities for rural communities, if rural industrialization be of significant impact on infrastructural development in rural communities and the factors militating against rural industrialization towards promoting national development. The study is however delimited to 1999-2020. 1.8 Limitation of the Study In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study. Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgement of issues. More so, most information for public consumptions is some time tagged secret there by restraining our ability to have all the necessary information or data needled to the subject matters. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges. 1.9 Definition of Terms Industrialization: Is the period of social and economic change that transforms a human group from an agrarian society into an industrial one, involving the extensive re-organization of an economy for the purpose of manufacturing. Development: This is level of physical environment social political and economic growth or civilization of the people. Rural area: This connotes the interior or remote parts of the local government, which the central government wants to develop by creating local government.