The Impact of Industrial Output on the Economy Growth in Nigeria

This study investigated the impact of industrial output on the economic growth in Nigeria using a time series from 1991 to 2023. The study employed a descriptive statistics in form of mean, standard deviation, correlation matrix, ADF test for unit root, regression, Granger casaulity. The study discovered a positive significant impact of exchange rate (EXR) on the economic growth, industrial sector output has significant impact on economic growth in Nigeria, and that there is a uni-directional causality relationship flowing from RGDP to IDO between industrial sector output and economic growth in Nigeria. However, the study found an insignificant effect of foreign direct investment on economic growth in Nigeria, but not statistically significant, suggesting that their impacts on RGDP are negligible in this context. This suggests that increased industrial output contribute positively to economic growth. Agricultural output (AGO) has a negative significance on the economic growth but is not statistically significant indicating that agricultural output does not have a meaningful impact on economic growth in Nigeria. This study therefore recommends that government should increase investment on industries for effective production of output. This will serve as a powerful incentive for increase in economic growth and increase in the real gross domestic product (RGDP) of Nigeria and there is need for the government to implement a competitive exchange rate. Government should maintain a competitive exchange rate which could attract foreign investment and aid or stimulate economic growth and motivating an increase in real gross domestic product (RGDP) in Nigeria.