The Potential for Distinctive Contribution of Knowledge-Intensive Business Services in the Quest for the Diversification of Nigeria’s Economy.

Abstract

Since after independence Nigeria has for years remained a mono-product economy with heavy dependence on crude oil for export. Successive administration has over the period paid lip service to address issues of economic diversification. However, the current development in the global economy has made it compelling to seek other means of foreign exchange earnings avenues. Technological advancement is one of the ways for diversification as growth in the Knowledge-Intensive Business services (KIBS) will enhance innovation for job opportunities and economic growth. Hence this study examines the potential for the distinctive contribution of KIBS in the quest for the diversification of Nigeria’s economy. KIBS are broadly consultancy and problem-solving firms which perform for other firms, services that are highly intellectual and value-added driven. This study is based on the development economy theory. It reviews streams of literature to distinguish between general service firms and KIBS, and elucidate the key characteristics of KIBS. Its significance to the economy, the various activities, and relevance in fostering diversifications in the economy are analyzed. It is, therefore, among others suggested that there should be a sensitization program for the public and lawmakers on the relevance of KIBS for diversification as well as policymakers to provide support structures for KIBS.