Identification of Moribund Factories and Industrial Revival Through the BOT Model

Nigeria’s industrial landscape is marked by a paradox: vast entrepreneurial potential alongside hundreds of moribund factories and underutilized industrial assets. Reviving these dormant facilities is not merely an economic necessity; it is a strategic imperative for industrialization, job creation, and GDP diversification.

A structured national program focused on identification, audit, and revitalization, supported by the Build–Operate–Transfer (BOT) investment model, offers a viable pathway for restoring productive capacity.

The Challenge: Industrial Dormancy

Across several states, factories in sectors such as:

• Textiles and garments

• Agro-processing

• Steel and light manufacturing

• Leather and footwear

• Food and beverage processing

remain abandoned or operating far below capacity due to:

• Inadequate infrastructure

• Power supply instability

• Poor management structures

• Limited access to long-term finance

• Policy inconsistency

The result is capital erosion, unemployment, import dependence, and weakened local value chains.

Step 1: National Identification & Industrial Audit

A credible revival strategy begins with data-driven identification and classification of moribund industrial assets.

Key Components of the Audit

1. Physical Verification:

   • Location mapping

   • Infrastructure condition assessment

   • Machinery and asset valuation

2. Legal & Ownership Review:

   • Title documentation

   • Existing liabilities

   • Debt exposure

3. Operational Assessment:

   • Original production capacity

   • Workforce skill profile

   • Market viability

4. Sectoral Categorization:

   • Strategic industries (e.g., steel, agro-processing)

   • Export-oriented industries

   • Import-substitution industries

This process should culminate in a National Industrial Recovery Database (NIRD) to guide investment matchmaking and policy prioritization.

Step 2: Revival Through the BOT (Build–Operate–Transfer) Model

The Build–Operate–Transfer (BOT) framework is a Public-Private Partnership (PPP) structure where:

• A private investor rebuilds or rehabilitates the facility

• Operates it for a defined concession period

• Recovers investment and earns profit

• Transfers ownership back to the government (or agreed entity) at contract expiration

Why BOT Works for Industrial Revival

1. Reduces Fiscal Burden on Government
   Capital expenditure is borne by private investors.

2. Attracts Technical Expertise
   Investors bring managerial competence, technology transfer, and efficiency.

3. Improves Risk Allocation
   Commercial risks are shifted to private operators, while the government focuses on regulation and enabling policy.

4. Ensures Long-Term Sustainability
   Defined concession periods create accountability and performance benchmarks.

Strategic Implementation Framework

1. Establish Industrial Recovery Zones

Revived factories should be integrated into:

• Special Economic Zones (SEZs)

• Industrial parks

• Cluster-based production corridors

This ensures shared infrastructure (power, water, logistics) and reduces operational costs.

2. Incentivize Investors

Policy instruments may include:

• Tax holidays (5–10 years)

• Duty waivers on imported machinery

• Access to concessionary financing

• Land lease guarantees

• Export incentives

Investment security and regulatory clarity are critical to attracting both domestic and foreign direct investment (FDI).

3. Prioritize High-Impact Sectors

Revival programs should focus on industries with strong multiplier effects:

• Agro-processing (reduces post-harvest losses)

• Textiles and leather (labor-intensive employment)

• Pharmaceuticals (health security)

• Steel and fabrication (infrastructure backbone)

4. Workforce Reintegration & Skills Upgrade

Industrial revival must integrate:

• Technical retraining programs

• Youth apprenticeship schemes

• Partnerships with polytechnics and vocational institutes

Revival is incomplete without human capital restoration.

Economic Impact Projections

A coordinated moribund factory revival strategy can:

• Reduce import dependency

• Expand non-oil exports

• Create thousands of direct and indirect jobs

• Strengthen SME supply chains

• Increase internally generated revenue (IGR)

• Improve the balance of trade

Industrial reactivation has significant multiplier effects across logistics, agriculture, finance, and services.

Governance and Oversight

For credibility, the revival program must include:

• Transparent concession bidding processes

• Performance-based monitoring

• Independent audit mechanisms

• Anti-corruption safeguards

• Periodic impact evaluation

Clear governance prevents asset stripping and ensures genuine industrial rehabilitation.

Conclusion

The identification and revival of moribund factories through the Build–Operate–Transfer (BOT) model represents a pragmatic, investment-driven solution to Nigeria’s industrial stagnation.

Rather than constructing new factories from scratch, reactivating dormant assets offers:

• Lower capital intensity

• Faster time-to-production

• Preservation of existing industrial heritage

Industrial revival is not merely about restoring buildings; it is about restoring productive capacity, economic dignity, and national competitiveness.

With structured audits, strong governance, and investor-friendly BOT frameworks, Nigeria can transform idle infrastructure into engines of sustainable growth and industrial renaissance.