The Correlation Between Infrastructural Development and the Nigerian Economy

There were many conversations and empirical studies around infrastructural development and its impact on economic growth in Nigeria and the rest of the world with different results: positive, negative and non-linear relationship. This necessitated this study which empirically examined the correlation between infrastructural development and the Nigerian economy. It employed the Vector Error Correction Model (VECM) to achieve its objective using annual data from1986 to 2024. This technique was important not only for providing useful information on the long run equilibrium relationship of the variables but also for the purposes of forecasting analysis. It was supported by unit root and co-integration tests. The unit root test indicated that the variables were stationary at first difference while the Co-integration showed that there was a long run relationship between infrastructural development and the growth of the Nigerian economy. VECM results revealed that there was a positive correction between infrastructural development and economic growth in Nigeria. It was striking to note that transport, education and electricity had positive and significant relationship with the growth of the Nigerian economy while telecommunication had negative impact on economic growth in Nigeria. The study recommended that government should increase budgetary allocation to infrastructural development such as transport, education, electricity and telecommunication sectors to enhance their services as they were the drivers of economic growth in Nigeria.