This study examines the challenges of Industrialization in Nigeria, with emphasis on the projects earmarked to support technological development and trail blaze industrialization in the fourth and fifth national development plan schedule. The study relied on primary and secondary sources of information: oral interviews and government documents constitute the primary sources, while, the secondary sources include newspapers, journal articles, conference papers and personal observations. The study reveals that colonialism truncated and hindered improvement in the indigenous skills and techniques of the precolonial economy. While the progress made by the fourth and the fifth national development plans; particularly with the establishment of a Nigerian machine tool industry at Osogbo among others, was short-lived by the withdrawal of the foreign technical partners. This is, however, seen as the problem of institutional support from the Nigerian government and secondly, of technology transfer, a struggle of opposing classes in which the developed nations tried to perpetuate a decadent status quo. However, the development of indigenous skills and techniques of precolonial Nigeria is a pre-requisite to sound technological growth, rather than depending on foreign inputs, which must be properly monitored and developed to set the pace for Nigeria’s industrialization.