The Rentier Metabolism: A foundational framework for the diversification penalty and the pathogenesis of industrial atrophy in resource-dependent economies

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Authors: Simon Suwanzy Dzreke
Cited by: 0

Abstract

Nigeria's well-known 23% "diversification penalty" shows the thermodynamic cost of maintaining a rentier metabolic state, a maladaptive equilibrium in which resource richness systematically causes industrial atrophy. This study goes beyond traditional "resource curse" narratives by revealing self-reinforcing rentier mechanisms that actively undermine non-resource sectors through institutional deterioration, cognitive capture, and financial diversion. Longitudinal mixed-methods analysis of Nigeria and Ghana (1990-2025), integrating sectoral data and institutional diagnostics, estimates Rentier Metabolism as accounting for 71% of industrial diversification failure variation, outperforming previous models (48%), and imposing a 23% efficiency penalty. This article presents the first dynamic system model of rentier pathophysiology as well as therapeutic transition concepts to interrupt metabolic lock-in, as proven by Nigeria's textile collapse. Policy proposals have focused on institutional bypasses and metabolic reengineering to promote resilient diversification. Keywords: Rentier Metabolism, Diversification Penalty, Industrial Atrophy, Resource Curse, Metabolic Lock-in, Institutional Decay.

Fields of Study & Subjects

Natural Resources and Economic Development World Systems and Global Transformations Culture Economy and Development Studies

Publication details

Journal / source
Engineering Science & Technology Journal
Volume
7
Issue
2
Pages
36–49
Publication date
8 February 2026
Language
EN