Industrialization and economic growth in Nigeria, 1990 – 2024

This research seeks to examine the nexus between industrialization and economic growth in Nigeria. The specific purpose of the study is to analyze the effects of manufacturing output, mining, electricity supply, construction, water/sewage/waste management, and labor force participation on Nigeria’s real gross domestic product growth rate. This study adopts an ex-post facto research design. The period covered spans from 1990 to 2024. Data were collected as annual time series secondary data from the Central Bank of Nigeria (CBN) statistical bulletin (various years), World Development Indicators, and World Energy Statistics from the International Energy Agency. The data were analyzed using the Error Correction Model. Additional tests conducted include unit root, cointegration, and autocorrelation tests. The research employs an econometric approach. The results reveal that manufacturing, mining, electricity supply, construction, and water/sewage/waste management had a negative effect on economic growth in Nigeria in the short run. However, only the effects of manufacturing, electricity, construction, and waste management on the Nigerian economy were statistically significant. In conclusion, industrialization has a negative effect on Nigeria’s economic growth. Nigeria’s industrialization efforts have not yielded the expected positive effects on the economy, leading to declining outputs in manufacturing, mining, electricity supply, construction, and water/sewage/waste management sectors. When electricity supply and distribution to the industrial sector are adequately enhanced, coupled with increased productive capacity, Nigeria’s economy will be on the path to long-term growth.