GSE 223: INTRODUCTION TO ENTREPRENEURSHIP
THE HISTORY OF ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA
The history of entrepreneurship development in Nigeria can be traced back to pre-colonial times
when indigenous communities engaged in various entrepreneurial activities such as agriculture,
trade, craftsmanship, and small-scale manufacturing. However, the modern development of
entrepreneurship in Nigeria can be categorized into different phases:
1. Colonial Era (Late 19th century - 1960)
During the colonial era, Nigeria's economy was predominantly agrarian, with limited
industrialization. The entrepreneurial activities were largely driven by foreign traders and
colonial companies. Indigenous entrepreneurs were involved in trading activities, particularly in
commodities like palm oil, rubber, and groundnuts, which were exported to meet the demands of
the colonial powers.
2. Post-Independence (1960 - 1970)
After gaining independence in 1960, Nigeria witnessed a surge in entrepreneurial activities. The
government launched various initiatives to promote indigenous entrepreneurship and economic
development. The establishment of the Nigerian Industrial Development Bank (NIDB) in 1964
aimed to provide financial support and promote industrialization. This period also saw the
emergence of prominent Nigerian entrepreneurs in sectors like manufacturing, construction, and
services.
3. Oil Boom Era (1970s - 1980s)
The discovery of oil reserves in Nigeria in the 1970s led to an oil boom, with petroleum
becoming the mainstay of the economy. The government focused on oil revenue and neglected
other sectors, leading to a decline in entrepreneurial activities outside the oil industry. This
overreliance on oil revenues resulted in a decline in local production and increased dependence
on imports.
4. Structural Adjustment Program (SAP) Era (1980s - 1990s)
In response to economic challenges, Nigeria implemented the Structural Adjustment Program in
the mid-1980s, which aimed to promote economic liberalization, privatization, and deregulation.
The SAP era witnessed the emergence of new entrepreneurs in sectors such as
telecommunications, banking, and services. The government encouraged private sector
participation and established institutions like the Bank of Industry (BOI) and the Small and
Medium Enterprises Development Agency of Nigeria (SMEDAN) to support entrepreneurship
and small businesses.
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5. Democratic Era and Entrepreneurship Development (2000s - Present)
Since the transition to democratic governance in 1999, Nigeria has witnessed increased emphasis
on entrepreneurship and economic diversification. The government launched various initiatives
and policies to support entrepreneurship, including the establishment of the Bank of Agriculture
(BOA), and the National Directorate of Employment (NDE). The growth of sectors such as
telecommunications, e-commerce, fintech, and entertainment has created opportunities for new
entrepreneurs, fostering innovation and job creation.
Despite the progress made, entrepreneurship development in Nigeria still faces challenges such
as inadequate access to finance, infrastructure deficits, bureaucratic hurdles, and policy
inconsistencies. However, the government, private sector, and international organizations
continue to work towards creating an enabling environment for entrepreneurship and promoting
sustainable economic development in Nigeria.
