A Professor of Geography, Professor Dickson 'Dare Ajayi has advocated the adoption of production subcontracting as a veritable tool for regional development in Nigeria.

He made this advocacy while delivering the 615th Inaugural Lecture of the University of Ibadan on behalf of the Faculty of the Social Sciences.

The lecture was titled: “Spatial Linkages and Regional Development.”

Professor Ajayi explained that production subcontracting constitutes an important component of the regional development process and it plays an important role in the restructuring of some industrial sectors, development of micro, small and medium enterprises, both at the national and international levels.

He described regional development as a comprehensive and often policy-driven effort aimed at fostering the growth and advancement of a region.

The Professor of Geography also described industrial production subcontracting as a technique which allows another independent firm to handle part of the production activities of another firm

‎He stated that regional development policy remains essential for achieving inclusive economic outcomes, improving social welfare, ensuring environmental sustainability, and strengthening resilience in the face of emerging economic and environmental challenges.

The Inaugural Lecturer classified regions into three major categories: formal regions with officially defined boundaries, functional regions shaped by economic and social interactions, and perceptual or vernacular regions influenced by cultural identity and public perception.

He identified seven major industrial groups involved in industrial production subcontracting activities as Food and Beverages; Basic Metal; Iron and Steel; Chemical and Pharmaceuticals; Plastic and Rubber; Pulp and Paper Products; Non-metallic Mineral Products; and Wood and Wood Products.

The Professor of Geography explained that subcontracting often occurs over relatively short distances because many of the required resources are widely available, making market access more important than transportation costs.

He explained how interactions among firms and production networks contribute to economic activities across different geographical spaces and regions.

According to him, this arrangement enables firms to focus on their core competencies while benefiting from the expertise and resources of subcontracting partners.‎

‎The Don said production subcontracting offers several advantages, including the reduction of investment risk, strengthening of control over the labour process, and the fostering of faster responses to technological and market changes.

He further noted that subcontracting helps firms remain competitive in an increasingly dynamic economic environment, observing that it plays an important role in the restructuring of the industrial sectors at both national and international levels.

The Inaugural Lecturer explained that the strategy could be implemented at both regional and national levels and could be adopted by state and federal governments as part of broader development initiatives.

He explained that such arrangements facilitate the flow of resources, skills, and opportunities across regions, thereby contributing to broader development objectives.

‎The Don noted that in the de-concentration of production processes into smaller units over space, especially in developed market economies such as the United States of America, the rise of production subcontracting is attributable to the performance problems caused by capital redundancy and labour militancy.

He also attributed the rise of production subcontracting to the strategic responses of firms towards rapid market changes, increased international competition and the corresponding development of new modes of corporate competition which are based on inter-firm consultative coordination and continuous improvement in the production process.

The Don urged government at the regional and national levels to generate industrialization in the underdeveloped regions and ensure that there are no marked regional disparities in development.

He charged the States and Federal governments to identify the lagging regions and the prosperous ones and also carry out a detailed analysis of the resource base of the lagging regions.

Professor Ajayi stated that successful implementation would require the identification of lagging and prosperous regions, adding that the commitment and collaboration of both state and federal governments are necessary for the strategy to succeed.

He called for the mobilization of private capital and cooperation amongst investors, state and federal governments for the strategy to be successful.

The inaugural lecture was the 12th in the series for the 2025/2026 academic session.