Paul Alaje Urges Nigeria to Build Factories Like China to Create Jobs, End Poverty
Lagos/Abuja—October 3, 2026—Leading economist Paul Alaje has called on the Nigerian government to abandon a passive approach to industrialization and instead take the lead by building factories and large-scale housing projects, drawing direct inspiration from China’s economic transformation.
Speaking on Channels Television’s Sunrise programme during a discussion on President Tinubu’s “Age of Prosperity” agenda, Alaje, Chief Economist at SPM Professionals, stressed that China did not wait for private manufacturers to first acquire equipment before industrializing.
Instead, the authorities proactively constructed factories, creating the foundation for mass employment and manufacturing growth.
“China did not wait for manufacturers to start buying equipment… the authorities started building factories,” Alaje said, according to the widely shared clip.
He argued that Nigeria needs a similar turnkey approach—one in which the state deliberately establishes industrial capacity and housing infrastructure to stimulate demand, create jobs, and drive sustained manufacturing output.
Why Factories and Housing Matter
Alaje has long maintained that Nigeria’s path out of poverty and economic vulnerability lies in shifting from primary production (raw materials and agriculture) and commerce toward robust manufacturing.
In previous appearances and writings, he has pointed to China’s deliberate state-led roadmap, which galvanized private sector and diaspora participation and turned the country into the world’s manufacturing hub.
He has repeatedly warned that without a deliberate industrial strategy, GDP growth remains fragile and often election-cycle driven rather than productivity-based.
Manufacturing’s contribution to Nigeria’s GDP has remained weak, and Alaje has previously urged that it should rise significantly—ideally toward 30–40 percent over time—to build resilience against external shocks.
Large-scale housing projects, he contends, would not only address Nigeria’s acute housing deficit but also create downstream demand for construction materials, steel, cement, and other locally produced goods, thereby supporting the very factories the government would help establish.
Broader Context of Alaje’s Call
Alaje’s comments come against the backdrop of ongoing debates about the pace and depth of economic reforms under the Tinubu administration.
While acknowledging certain policy shifts, including subsidy removal and market liberalization, he and other analysts have consistently argued that reforms must extend into industrial output, energy reliability, and agriculture if ordinary Nigerians are to feel tangible benefits.
He has studied China’s transformation extensively and frequently cites how government leadership, combined with private-sector partnership, unlocked rapid industrial growth and lifted hundreds of millions out of poverty.
Nigeria, he says, should aim to become the manufacturing centre of Africa rather than remain primarily a nation of commerce and farming.
Alaje’s intervention adds to a growing chorus of voices calling for a more assertive, production-oriented industrial policy.
Proponents argue that state-backed industrial parks, reliable power, skills development, and targeted housing could unlock job creation at scale.
Critics of heavy state involvement, meanwhile, often emphasize the need for private-sector efficiency, improved security, and a more predictable business environment.
As Nigeria continues to grapple with high unemployment, cost-of-living pressures, and the need for inclusive growth, Alaje’s message is clear: waiting for the private sector alone may not be enough.
Government, he insists, must lead by building the factories and the homes that can put millions of Nigerians to work and place the country on a firmer industrial footing.
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