For decades Nigeria has been stuck in the resource curse while following Western prescribed development models. Looking to India for inspiration might help break the cycle, writes Ademola Oshodi.
For decades, Nigeria, like many developing African economies, has looked to the West for economic models, financial assistance, and governance frameworks. Yet, despite its abundant natural resources, a youthful population of over 200 million, and its status as one of Africa’s largest economies, Nigeria’s development challenges persist.
In a rapidly transforming global landscape, it has become imperative for nations to maximise development using pathways that match their own context. Nigeria must look beyond Western models and explore alternative success stories. India’s Jugaad – a philosophy of frugal innovation and creative problem-solving – offers a compelling blueprint for Nigerian development.
Jugaad underscores notions of grassroots resilience, collaboration, sustainability, local empowerment, inclusivity, and resourcefulness. Building on these, Jugaad provides a framework for addressing Nigeria’s unique challenges while leveraging its strengths. A Nigerian application of Jugaad would prioritise local innovation and grassroots development by maximising the informal sector to propel growth. This approach of exploring “simple” solutions to everyday problems will go a long way in transforming the Nigerian socio-economic landscape.
Jugaad: A model for resourceful development
Jugaad is a concept synonymous with frugal innovation. It emphasises doing more with less. It is a mindset of negotiating adversity through creative improvisation and leveraging limited resources to achieve maximum impact. Jugaad’s principles provide a framework for Nigeria where limited resources are confronted with competing developmental needs.
India, once a struggling post-colonial state like Nigeria, has transformed itself into a global powerhouse in technology, manufacturing, and human capital development. The country has significantly reduced extreme poverty and is projected to become the world’s third-largest economy by 2030. India’s rise demonstrates that development models from the Global South can be effective and potentially more relevant for other emerging economies like Nigeria. Unlike Western economies built on colonial-era wealth, India’s success is rooted in homegrown innovation, digital transformation, and strategic workforce development.
A shared history yet divergent paths
Nigeria and India share striking similarities: both are multi-ethnic, multi-religious, and multi-cultural nations with colonial legacies that gained independence from Britain in the mid-20th century. Both nations are regional powerhouses. India is the world’s largest democracy and Nigeria is Africa’s largest. Yet, while India has diversified its economy and built a robust industrial base, Nigeria remains heavily reliant on oil exports, leaving it vulnerable to global price fluctuations. Valuable lessons can be learnt from India’s prioritisation of industrialisation, digital transformation, and entrepreneurship support. India’s economic reforms since the 1990s include liberalising trade, attracting foreign investment and boosting local industries.
In the ease of doing business index, India jumped from 142nd position in 2014 to 63rd in 2019. Nigeria meanwhile has witnessed minimal improvements from 140th position in 2014 to 131st position in 2019. Nigeria can replicate India’s success by embracing similar reforms, reducing bureaucratic bottlenecks, and fostering a business-friendly environment.
Lessons from India’s development journey
India’s economic shift from agriculture to manufacturing and services has been transformative. Initiatives like Make in India have created industrial corridors and clusters that have boosted sectors such as automobiles, electronics, and pharmaceuticals. India has earned itself the title of “pharmacy of the world”. This was achieved by prioritising generic drug manufacturing over Western patent models. Exports from this sector are projected to reach £272 billion by 2047. The development of the pharmaceutical industry can be attributed to the prioritisation of localised production, heavy investments in R&D, adoption of AI technology, and diversified supply chain sources.
Nigeria, with its vast resources and youthful population, must prioritise industrialisation to reduce its dependency on oil and create sustainable economic growth. India has managed to maintain a strong agricultural sector through mechanisation, improved irrigation, and modern farming techniques. Nigeria is blessed with vast arable land that can be leveraged to boost food security and reduce import dependency. This can be achieved by adopting similar policies that support smallholder farmers and increase productivity.
Digital transformation and inclusion are evident in India’s transformational pathway. The Digital India initiative has revolutionised access to technology and financial services. India alone accounts for over 40 per cent of global digital transactions. Nigeria accounts for less than 1 per cent of the global digital payments market value, at an estimated £53.35 billion of a global total of £15.86 trillion. Nigeria can leverage its vibrant tech hubs in Lagos, Abuja, Port Harcourt and other parts of the country to accelerate digital innovation to address challenges like financial inclusion and public service inefficiencies.
India has managed to leverage its informal sector to spur significant digital inclusion and growth. For instance, its Aadhaar Enabled Payment System (AePS) allows access to financial services especially for individuals without access to traditional banking. While systems like Nigeria’s Opay are driving financial inclusion, the rapid process of India’s AePS can be adapted to maximise Nigeria’s over £1.1 trillion valued informal sector, focusing on underserved rural communities.
India’s development model tells a story of empowerment through education and the development of local enterprises. The country’s emphasis on STEM education and vocational training has built a skilled workforce. Its support for small and medium-scale enterprises through initiatives like Startup India has spurred entrepreneurship and job creation with India boasting the third largest startup ecosystem globally. Nigeria can replicate this by investing in its own human capital, provide easier access to credit, and reduce regulatory hurdles.
Beyond adopting the Indian success story, Nigeria and India can build on their existing diplomacy for strategic collaboration. Both countries already share significant economic ties, with bilateral trade valued at approximately £10 billion between 2021 and 2022. Indian companies have invested heavily in Nigeria’s pharmaceuticals, manufacturing, and technology sectors. By deepening this relationship through knowledge transfer, industrial collaboration, and educational exchanges, Nigeria can accelerate its development while maintaining sovereignty. Institutional partnerships between Nigerian and Indian universities can foster technical cooperation in AI, agriculture, and manufacturing. With thousands of Nigerian students already studying in India, joint research and development initiatives can further strengthen ties and drive innovation.
An alternative path for Nigeria
India’s development model demonstrates that sustained economic growth is possible without solely depending on Western frameworks.
Jugaad – rooted in resourcefulness, adaptability, and self-reliance – offers a viable blueprint for Nigeria’s transformation and an opportunity to redefine its development strategy. By learning from India’s experience, Nigeria can unlock its potential and build a prosperous, resilient, and globally competitive economy while building on the principles of equality and sustainability.
Photo credit: MEAphotogallery used with permission CC BY-NC-ND 2.0
