Role of Services Sector in Economic Diversification in Nigeria (1984-2023)

The study examined Role of Services Sector in Economic Diversification in Nigeria (1984-2023). Given Nigeria's dependence on oil revenue has rendered its economy susceptible to global price volatility. Economic diversification is a critical pathway for reducing this dependency, particularly through the services sector. The research is guide by two objectives, research questions and hypotheses, it employs an ex post facto design using secondary data validated by the World Bank (WB,2024). The dataset includes Nigeria’s Real Gross Domestic Product (RGDP) as a proxy for economic growth and key service sector indicators, including Finance and Insurance and Real Estate, with Inflation is included as a control variable. Regression analysis conducted via SPSS reveals a significant correlation between Finance and Insurance contributions to GDP (t = 2.385, p = 0.022), Real Estate contributions (t = 4.101, p = 0.000), and GDP growth. Both sectors substantially impact economic growth and diversification. The study recommends that the government should promote private sector investments in service sectors that will enhance and support the agriculture and manufacturing sectors in Nigeria.