Between 5 and 14 December, 2019, the International Development Cooperation Team of Institute of New Structural Economics (INSE) visited Nigeria on the invitation of the Governor of Kaduna State, Nasir Ahmad el-Rufai. The Kaduna State Government commissioned INSE to study the potential of industrial development in the cotton/textile/garment and leather and shoemaking industries. Kaduna, a state in Northwest Nigeria, was a commercial and industrial hub from the 1960’s until the early 2000’s, but has lost most of its manufacturing since. However, with a strategic location, a young population of over 9 million, access to Nigeria’s huge markets, and a committed government, Kaduna State’s future looks bright.

INSE was welcomed to Kaduna by a delegation consisting of representatives from different branches of the state government, including the departments of energy, mining, agriculture, and the investment promotion agency. INSE visited various garment firms. While some of these firms had been closed for a long time, INSE found several small companies producing garments. INSE also met with representatives from the local Chamber of Commerce, the Manufacturers Association and a leather research institute. All of these institutions expressed an eagerness to work together with foreign investors to drive industrialization in Kaduna. There are two special economic zones (SEZs) set up in the Kaduna State. One of these is still in the early development stage, but the Green Agro Alliance Industrial Zone (GAAIZ) already hosts three firms in agro-processing. INSE visited a modern plant owned by Olam, a multinational company that has become very successful in Nigeria. INSE also met with the Kaduna Bureau of Statistics, which provided the necessary data on Kaduna’s economy.

At the end of the fieldwork, INSE met with the Governor and his team. The Governor stressed the progress the State Government has already made in improving security and investing in infrastructure. In addition, he conveyed his hope that INSE’s report will help guide the Government’s direction in attracting foreign investment.

In addition to the fieldwork in Kaduna, INSE also visited the Lekki Free Trade Zone near Lagos and met with the Chinese Ambassador in Abuja, the capital. We believe Nigeria has a lot of potential due to its young and capable population, favorable climate, and natural resources. Nigeria is well suited for further agricultural development and is well positioned to export agricultural products to world markets, including China.

Like many other developing regions, Kaduna faces a range of serious challenges, including power shortages, insecurity, and poor infrastructure. However, local authorities appear to be aware of the importance of finding solutions for these obstacles to industrialization. By doing so, the Government can unlock Kaduna’s potential and begin to attract international investors to revive its manufacturing industry and provide much needed jobs to its youth. INSE will now use the data collected during the fieldwork to write a comprehensive paper with policy recommendations for the Kaduna State Government. Cooperation between INSE and Kaduna will continue, with a visit of the Kaduna State Government team to China already planned.