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The document discusses global value chains (GVCs) and opportunities for Nigeria's participation. Developed countries drive GVCs through R&D and financing, while developing countries contribute production, raw materials, labor, and support activities. Nigeria is well positioned for GVC investment due to its large population, natural resources, and low costs, though it needs improved infrastructure and manufacturing capacity. Key opportunities for Nigeria exist in manufacturing, agriculture, infrastructure, and sectors like FMCG and vehicle parts. Overall GVCs provide a way for countries to cooperate economically and develop trade.
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Final project
- 1. FINAL PROJECT WORLD BANK GVCs COURSE INNOCENT AZIH
- 2. The Chain The Chain is driven from research and development, capacity and financial strength from the developed countries It supports the developing countries as geographies for production (manufacturing), raw materials and unskilled labour provision, and
- 3. THE SUPPORT TO GVCs The niches of chain participation in developing countries are in the logistics, operations, marketing (export) and services. The economies benefit from procurement revenues, technology deployment and deepening, infrastructure and human resource development and utilization. These support activities provide opportunities for jobs, tax incomes and export revenues
- 4. Nigeria Case Study: Favorable Conditions • Huge natural resources: Agriculture, crude oil, solid minerals • Huge population (over 200 million) • High unemployment rates @ 30% • Low skilled labour • Poor infrastructure • Low currency value • Poor manufacturing capacity and growth • Huge export and logistics facility Nigeria’s manufacturing trend Nigeria is a huge ground for increased GVC investments.
- 5. FDIs: Financial leg of GVCs • High return on capital investment opportunities: highest in the world @ 35% • High consumption population: 200 m • Diversified market value
- 6. GVC Opportunities in Nigeria FMGC Vehicle parts GVC opportunities exist in Nigeria in sectors such as manufacturing, agriculture, infrastructure
- 7. CONCLUSION • GVCs was, and still remains a great window for global cooperation and trade. • It has provided an outlet for developed countries to export capacity and developing countries to scale up economic development and trade. • The spiral downwards of GVCs due to 2007/2008 financial meltdown required a new wave of economic thought and activism for its rescuscitation. • In the post COVID-19, developing economies will need new wave of reforms to sustain their capacity to innovate, buld and trade, since all economies are affected.