Contribution of Economic Sectors to Nigeria Gross Domestic Product

The primary goal of this study is to determine the contribution of Economic Sectors to Nigeria Gross Domestic Product (GDP) based on the collected data from 1994 to 2023 on Agriculture, Industry, and Service Sectors and GDP at Current Basic Price. A multiple regression model is estimated to analyze the data using GDP at current basic price as the dependent variable and Agriculture, Industry and Service Sectors as the independent variables. The Pearson correlation test was also used in this study to assess the relationship between economic sector and GDP. The study reveals a significant structural shift in the Nigerian economy, with the Services sector emerging as the dominant contributor to GDP, growing from 42.94% in 1994 to 43.60% in 2023. Meanwhile, the Agriculture sector's contribution declined slightly from 25.43% to 23.17%, and the Industry sector exhibited volatility, ultimately contributing 33.22% in 2023. Using multiple regression analysis, this study identifies a near-perfect correlation between these sectors and GDP, suggesting a high degree of interdependence and predictive accuracy. Additionally, the correlation analysis highlights strong linkages between the sectors, indicating that developments in one sector can significantly influence the others. The forecast for 2024 to 2031 anticipates continued economic growth, with GDP projected to rise from ₦216,849.27 billion in 2024 to ₦361,725.02 billion by 2031. The study concludes that sustainable economic growth in Nigeria requires targeted policy interventions to diversify and strengthen the Agriculture and Industry sectors while expanding the already dominant Services sector. Recommendations include investment in agricultural modernization, industrial innovation, infrastructure development, and policy stability. This research contributes to the understanding of Nigeria's evolving economic structure and provides insights for policymakers aiming to achieve balanced and sustainable growth