Nexus Between Industrialization and Economic Growth in Nigeria (1990 – 2024)

Student: TOLANI TOLULOPE ATUNRAMU (Project, 2025)
Department of Economics
Ekiti State University, Ado-Ekiti, Ekiti State

Abstract

This study examines the relationship between industrialization and economic growth in Nigeria from 1990–2024. Using econometric techniques such as the Autoregressive Distributed Lag (ARDL) model and Granger causality test, the study analyzed the effects of industrial output, inflation, exchange rate, and trade openness on GDP. Data were sourced from the Central Bank of Nigeria, National Bureau of Statistics, and World Bank. Findings show that industrial output does not significantly influence GDP in the long run, while gross capital formation and labour force contribute positively. Trade openness and inflation negatively affect growth. The causality result reveals a unidirectional relationship from industrialization to GDP, confirming that industrial development supports long-term growth. The study recommends improving infrastructure, promoting local production, encouraging investment in technology-driven industries, and implementing policies that enhance Nigeria’s industrial capacity for sustainable economic growth.

Keywords
Industrialization Economic Growth Nigeria ARDL Model Granger Causality Industrial Output Trade Openness Inflation Gross Capital Formation Labor Force Infrastructure Technology-driven Manufacturing Policy Reform Macroeconomic Stability.
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