International Journal of Research and Innovation in Applied Science (IJRIAS)
Leadership and Industrialization: The Way Forward for Nigeria
Mamuda Muhammad, Abubakar Sani Sambo, Ismail Abubakar Jumare*
Faculty of Engineering and Environmental Design, Usmanu Danfodiyo University Sokoto, Nigeria. (P.M.B 2346)
*Correspondence Author
DOI: https://doi.org/10.51584/IJRIAS.2024.909006
Received: 09 September 2024; Accepted: 18 September 2024; Published: 30 September 2024
Energy is a key requirement to industrialization which has been vigorously promoted in advanced countries. Leadership in industrial operations is absolutely essential in view of efficiency and risk management. This paper offers a comprehensive submission on leadership as linked to industrialization with strong focus on energy and its security as a driver. Targeting Nigeria as a case of study, different cases have been showcased comparatively, as well as the way forward for effective and efficient leadership in view of industrial operations. Furthermore, policy measures and technical concerns in view of energy access and sustainability for industrialization to thrive in the case study country, have been successfully offered. These, in a nutshell, are considered key elements to industrial transformation in Nigeria and beyond.
Keywords: Energy Access; Leadership; Industrialization; Energy Policy; Nigeria
Good governance is a strong requirement for a country to be developed and transformed with ultimately enhanced and sustainable standard and costs of living. This is driven by democracy and leadership with a strong political will. Such a structure is essential to put nations on modern development trajectory of industrialisation. The development is obviously applicable to different sectors viz.: agriculture, manufacturing, mining, transportation, services and so on, which are strongly linked to social, economic, and cultural conditions on profound impact around the globe [1]. On the standard of living, it is important to specify the fact that sophistication of technologies in today’s world has resulted in new and efficient products and services which enhance the lives of people [1]. It is important to state further that as a technological input, one of the pathways to triggering industrial transformation is the development of industrial clusters [2]. If linked to effective leadership, it is considered a viable tool to enhanced economic growth and competitiveness in different economies globally.
On the technological input, basing on energy industries, the aspect of adequate, reliable and sustainable energy supply with enhanced level of security of supply, is crucial as a requirement. This ensures following the path of the global energy transition roadmap as reflected in the United Nations Sustainable Development Goals (UN SDGs) and the Net Zero Agenda of the United Nations Framework Convention on Climate Change (UNFCCC) [3]. Nations need to adopt the global energy transition plan but with adjustments to conform to their local situations.
Focusing on the argument to the Nigerian context, transformational leadership is needed to develop Nigeria by following a comprehensive blueprint based on:
Lastly, the paper aimed to provide intellectual contributions towards ensuring industrialization with focus on effective leadership and energy concerns in the Nigerian context. It has been structured in sections viz.: section 1 – introduction, section 2 – leadership and industrialization, section 3 – energy security, section 4 – climate change and energy transition, section 5 – way forward for Nigeria, and section 6 – conclusion.
Leadership and Industrialisation
By definition, a leader is the one who knows the path, shows the path, and walks on the path. It is very true that a person who just guides you and points out the path is not a leader but a boss. But the person, who is ready to step on the risky path with you by holding your hand, is the true leader. A great leader is one who motivates you to achieve success. He is an influencer who is not required to force the people to follow him. But due to his deeds and qualities, people follow him on their own. Hence, in this regard a leader must have a strong personality.
Furthermore, many definitions have been reported for ‘’Leadership’’ in various literature, of which some of the definitions as reported by [1] follow:
‘’Definition 1: Leadership is an attitude possessed by a leader that is used to influence others in the group to achieve mutually agreed goals. Definition 2: leadership is a process where leaders provide influence and examples to each individual they lead with a view to achieving common goals. Definition 3: Leadership in organizations is an entity in the direction of the duties or obligations of members in the organization intended to achieve goals’’.
In the control and management of people and resources there are many types of leadership styles, but basically there are two types of leadership in the world today as far as growth and development are concerned. These are: Transactional and Transformational leaders [4]. The Transactional Leadership is viewed as a task oriented leadership based on 2 components i.e. reward and punishment being an extrinsic motivational-based [5]. Hence, in this regard, a transactional leader specifies the task to be performed as well as the expectations and tries to measure performance. Compliance to the expectations tends to be rewarded otherwise a penalty arises for failure. In fact, it is the type of leader, that, in the view of a number of thinkers, agencies most often produce. This is the successful professionals: engineers, doctors, lawyers, accountants, teachers and so on and so forth. They are well educated, do their jobs with diligence, and are often rewarded appropriately. The Transformational Leader is one who also exercises great responsibility in view of creating a vision and inspiring subordinates to struggle and strive beyond the required expectations [6]. Hence, this type of leader is not satisfied with the status quo, with achieving authority and status within established organizations, according to well accepted criteria. It should be noted that the transformational leader has as his or her driving motivation to move their organizations and their co-workers to achieve goals they never thought about, to find inspiration in new ideas. Think of it this way, the transformational leader brings new, larger and richer goals to organizations.
On basing the next argument on industrialization, which is or should be linked to effective leadership for success stories significantly, is viewed in respect of economic and social processes related to the discovery of more efficient ways for the creation of value [7]. Looking at the Nigerian context, it should be noted that the Industrial Policy of the country, which was made public in 1989, aims to make the industrial sector the main source of strength of its economy with the following elements as reported by [8]:
In addition to the preceding points, numerous policies and actions have been taken by governments over the years to support industrial development in Nigeria, some of which included: the Nigerian Indigenization Policy (NIP) of 1972-77, Structural Adjustment Program (SAP) of 1986, Trade and Financial Liberalization Policy (TFLP) of 1989, establishment of the Bank of Industry in 2000, National Economic Empowerment and Development Strategy (NEEDS) of 2004, and the Nigerian Industrial Revolution Plan (NIRP) of 2014.
It must be further noted that the economy of Nigeria is described as a middle-income, mixed economy, and emerging market with expanding manufacturing, financial, services, communications, and entertainment sub-sectors. Its GDP as of 2022 was valued at $ 472.62 billion, and with a per capita value of $ 2,163, and hence ranked the 33rd of the major economies in the world [9]. The industries contribute about 30.78% to the Nigeria’s GDP compared to 23.69% and 44.04% contributions from agriculture and services respectively [10]. In spite of all its policies and its current position in the world, only three manufacturing sub-sectors: food and beverages; cement; and textiles account for 77% of the manufacturing output in Nigeria. The fact that the manufacturing activities of Nigeria are essentially focused on the production of consumer goods is because there is essentially nothing in terms of new manufacturing techniques as well as no local Capital Goods production.
In providing further details on the capital goods as mentioned earlier, such kinds of goods which should be produced in Nigeria, include:
The top 10 manufacturing nations in the world are also those with the largest Capital Goods sectors with their shares of the global total of 2019 statistics as reported by [11] that follows in table 1:
Table 1: Top 10 Manufacturing Nations on Capital Goods Basis in 2019 [11]
| Country | Share of the World Manufacturing (%) |
| China | 28.4 |
| United States | 16.6 |
| Japan | 7.5 |
| Germany | 5.8 |
| India | 3.3 |
| South Korea | 3 |
| Italy | 2.3 |
| France | 1.9 |
| United Kingdom | 1.8 |
| Indonesia | 1.4 |
Energy Security
Energy security being an important aspect in energy operations for a country, region, continent and the globe at large has been defined according to [12] as “The uninterrupted availability of energy sources at an affordable price”. It is further noted that energy security can be seen from two perspectives, viz.: long term energy security, which deals with timely investment on energy activities for economic development and environmental needs; and short term energy security being the energy system prompt reaction to sudden changes [12]. If electricity supply is from coal and hydro sources is described as having an energy mix of 2, that from coal, gas, solar, hydro and wind will have an energy mix of 5. An energy supply with high energy mix is ascribed with high energy security which manufacturing plants seek to consolidate their productions [13].
From the foregoing, Energy Security is an absolute necessity for economic growth and development of all nations. Reliable energy supplies are needed for supporting industrial productions of all types, powering businesses, powering water supply systems, schools, hospitals etc. Furthermore, energy insecurity, on the other-hand, retards socio-economic growth of nations by leading to higher energy prices generally, higher cost of goods and services as auto-generation of energy has to be recouped, and social instability.
The major factors that affect Energy Security can be identified as:
In addition, to have a brief view of the Nigerian power sector, statistics of 2021 showed a total installed capacity of 11.7GW however, the actual generation capacity leading to 31.5GWh electricity generation was valued at 7500MW [14]. This is extremely inadequate for a population of more than 200 million as an energy security concern. Hence, that ultimately showed the obvious low electrification rate far lower than many countries in Africa. On refinery cases, at the moment, all the 4 federal government owned petroleum refineries with a combined capacity of refining 445,000 bpd are not functional and virtually all the petroleum products requirement of the nation are being imported. This includes transport and industrial fuels. To compound the situation, the imported products are sold to Nigerians at subsidised rates. Reports credited to OPEC indicated that while Nigeria exported USD 27.73 billion worth of petroleum products in 2020 it imported refined petroleum products worth $ 71.29 that year showing that $ 43.56bn was the excess of imports over exports [15]. The Group Managing Director (GMD) of Nigerian National Petroleum Cooperation (NNPC) reported that Nigeria is currently spending more than N400 billion monthly as subsidy on the sale of petroleum products. Other major issues of the Nigerian oil and gas sector that impact the security of petroleum products supply include: oil spills in the Niger Delta, pipeline vandalism, crude oil theft, inadequate pipeline infrastructure, unreliable gas supply, poor gas funding.
The quantified production of crude oil in the case study with the export overview in a trend wise manner have been presented in figure 1:
Figure 1: Nigerian Crude Oil Production and Export Trend [16]
Based on the crude oil information presented with the obvious challenges, Dangote Refinery and Petrochemical Complex was commissioned on 22 May 2023. When in full operation it will process about 650,000 bpd of crude oil, making it the largest single-train refinery in the world, of which more than US $ 19 billion was invested in the project [17]. The Complex has the capacity to meet 100% of the Nigerian requirement of all refined products viz.: Premium Motor Spirit (PMS) – 53 million litres per day, Automotive Gas Oil (AGO) – 34 million lires per day, House Hold Kerosine (HHK) – 10 million litres per day, and Aviation Kerosine (AK) – 2 million litres per day. The Complex also has surplus of each of these products for export. This security of petroleum products supply will surely be inadequate when Nigeria’s current population of about 220 million people rises to about 400 million in 2050.
Information from the Ministry of Petroleum Resources indicate that more than 30 licences for constructing refineries have been granted but seems only a few are being constructed with their specified capacities as shown in table 2:
Table 2: Constructed Refineries Based-on Licenses with Capacities
| Refinery | Capacity (barrel per day – bpd) |
| BUA Refinery in Akwa Ibom with a capacity | 200,000 |
| Niger Delta Petroleum Resources (Rivers States) | 1,000 (Operational) |
| Resource Petroleum and Petrochemicals Inc. (Akwa Ibom State) | 100,000 |
| Amakpe International Refinery in Akwa Ibom State | 12,000 |
| Kainji Resources Limited (Imo State) | 24,000 |
| Omega Butler Refinery in Rivers State | 20,000 |
Climate Change and Energy Transition
Global temperature rise arising largely from combustion of fossil fuels is the principal cause of global warming which if not curtailed will lead to climate change in general with impacts or outcomes viz.: melting of the glaciers, massive global floods, droughts, increased fire threats, weed and pest invasions, amongst others. Although Nigeria and the developing nations were not the contributors of the emissions that have brought climate change to the world but because the environment has no borders we are, in Nigeria, already suffering from climate change impact. The impact is clearly evidenced by: temperature rise, rainfall variability, increased desertification, rising sea levels, erosion and floods, bush fires, and loss of biodiversity [18].
It has since been confirmed by the IPCC that about 87% of CO2 emissions from human sources arise from the combustion of fossil fuels and has 4 major components: electricity generation – 41%, transportation – 23%, industry – 20%, and Others – 16% [3]. There is the urgent need to significantly minimize CO2 emissions in the power and transport sectors. Sustainable pathways should be adopted for stability of the environment. It should be noted that in 2015 the United Nations adopted the 17 Sustainable Development Goals (SDGs), amongst others, by 2030 curtail the catastrophe that will befall the world from the increasing menace of global warming and Climate Change [3]. SDG7 in particular is for all nations to provide universal access to modern energy services to its citizens by 2030 as well as to significantly increase the uptake of renewable energy and doubling of energy efficiency. After monitoring the implementation of the SDGs, it was concluded that the world will not limit temperature rise at 1.5 °C and thereafter, the 2050 Net Zero Agenda was brought forth [3]. The Agenda:
Figure 2: Causal Factors of Climate Change [18]
Nigeria pledged to attain Net Zero emissions by 2060 through its Energy Transition Plan that was presented to the Climate Change Conference in 2021 and reconfirmed at the edition of 2022 at Egypt. This was following all commitments from the 2013 where the African Union (AU) adopted Agenda 2063 after recognizing Climate Change as a key challenge to the continent’s development and agreed that member states should produce their Nationally Determined Contributions (NDCs) for abating Climate Change complications.
The Way Forward for Nigeria
On Leadership, even though the preferred option is to have a Transformational Leadership over Transactional one, in the political terrain of Nigeria today it will be very difficult to get any of the two leaderships. A move towards getting Nigerians to be more interested in getting good leaders will need the following steps:
A solid manufacturing sector in Nigeria will necessarily need:
Capital Goods are physical assets that are used by companies to manufacture products and services needed by consumers. Examples of Capital Goods include buildings, machinery, equipment, vehicles and tools. Capital Goods are not finished products which means they are the man-made materials or systems that are needed to produce goods and services. The more a country invests in its capital goods the stronger its economy and GDP. The following pathway is recommended for Nigeria to industrialized:
On Climate Change and Energy Transition, it should be noted that while the global Energy Transition Plan (ETP) prepared by the International Energy Agency has no provisions for new fossil fuel plants from now to 2050, the Nigerian version, in line with its “Just Energy Transition Policy”, provides for the significant use of gas, being the cleanest of the fossil fuels, and renewable energy. The Nigerian Energy Transition Plan (ETP) can be described as one that has included a timeline and framework for achieving reduced emissions from utilisation of the oil products of petrol, diesel and kerosine products in cooking, in transport, in industries and in power generation mainly by refocusing to use the huge gas resources of the nation. The Nigerian ETP, and indeed the global ETP, do not highlight the fact that the pledge of nations is for net zero emissions by the pledge dates and not absolute zero emissions. A country like Nigeria that is discovering newer gas fields ought to have a long-term energy plan and to come up with:
Based on the different findings presented as way forward for Nigeria, it is important to offer some clear theoretical justifications as follows:
In line with the contributions presented in this paper for the case of Nigeria, some recommendations for future work in line of the research have been presented below:
This paper touched on several aspects linked to effective leadership for supporting development in general and industrialization in particular, in Nigeria. Several pathways were provided for the country while also making strong recommendations on energy supply considerations. Emphasis was made on the fact that transformational leadership is needed to develop Nigeria by producing and implementing a comprehensive development blueprint based on: