An Empirical Analysis of the Impact of Private Sector on the Economy.

Student: Noah Sunday Adewole (Project, 2025)
Department of
Bayero University, Kano, Kano State

Abstract

This study examine the impact of the private sector on the economic growth and development in Nigeria. A model was specified and data were collected from the period of 1981 – 2022. The method used in this research work is the Ordinary Least Square {OLS} Regression model variables which are: Gross Domestic Product{GDP}, as the dependent variable while Foreign Private Investment{FPI}, Domestic Private Investment{DPI}, Total Private Savings and the Total Bank Loans are independent variable and are all significant except total Private Savings that is insignificant. I recommend that there should be policies that will attract foreign investors; such policies could be the reduction of corporate tax rate, providing incentives to local investors to enable them compete with foreign investors worldwide. Policies also be against the transfer of capital and profit from Nigeria to foreign countries as it drains the income meant for National development. The government should also maintain political stability in the economy because unstable environment discourages investors.

Keywords
empirical analysis impact private sector economy
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