Industrialisation is the key to economic development. Therefore, the following are some of the ways in which industrialisation helps to promote economic development:
(i) Avenue for Employment Opportunity:
The growth of industries, together with increase in production and the provision of social amenities, offers more employment opportunities, especially to many young school leavers. In this way, industries help to raise the living standard of the people.
(ii) It Increases the National Income:
Industrialisation increases the national output through increased productivity of the factors of production, thereby raising the national income.
(iii) If Increases Government Revenue:
Government generates more revenue through the establishment of industries. This revenue comes from excise duties, royalties and company profit tax which is used for development projects. Such projects increase economic development.
(iv) Diversification of Economy:
Industrialisation brings about economic stability through diversification of the economy. This saves the nation in times of price and output fluctuations in the international market. It also reduces dependence on the oil sector, which has been the mainstay of the economy and will improve the foreign exchange earning position.
(v) Foreign Exchange Earnings:
Many industries are established which process products of industries abroad. This helps the country to increase foreign exchange earnings which is used for the purchase of other capital needs and many other items.
(vi) It Increases the Living Standard of the People:
Since industrialisation creates employment for the people and also provides different kinds of goods and services through marketing of agricultural products, it therefore, helps to raise the living standard of the people.