Assessing the Economic Impact of the Manufacturing Sector on Economic Growth in Nigeria

Umaru Musa; Ulori Jeremiah Temituoyo; Unoh Grace Inyang; Salihu Haruna Dukku

doi:10.56201/jbae.vol.11.no10.2025.pg23.37

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Assessing the Economic Impact of the Manufacturing Sector on Economic Growth in Nigeria

Umaru Musa, Ulori Jeremiah Temituoyo, Unoh Grace Inyang, Salihu Haruna Dukku

Abstract

This study examined the impact of manufacturing sector on economic growth in Nigeria. The annual time series data was collected from world development indicator and Central bank of Nigeria respectively, covering 39 years span from 1986 to 2024 were used. The expost factor research design was used for this work. The study employed the econometric estimation technique of Autoregressive Distribution Lag (ARDL) model was used for the analysis, adopting annual data method of analysis. Aside that, a lots of tests were conducted such as co-integration test, bound test, long- run and short- run test ADF stationarity etc the result estimated, all the explanatory variables were consistent with a priori expectation. This implies that a unit increase in employment (EMPL), political instability (PLS), and foreign direct investment (FDI) will lead to a decrease of about 0.084866, 9.235912 and 0.922511 in gross domestic product (GDP), all things being equal. Base on recommendation: Encourage Productive Employment: Employment policies should focus on creating decent and productive jobs, particularly in the manufacturing and industrial sectors. Skill acquisition programs and vocational training should be prioritized to align labor supply with industry needs. Attract and Manage FDI Effectively: Policymakers should implement transparent and investor-friendly policies that encourage foreign direct investment in productive sectors such as infrastructure, manufacturing, and technology. Monitoring mechanisms should also be strengthened to ensure FDI contributes to domestic capacity building rather than capital flight. Invest in Infrastructure: Continuous investment in physical and social infrastructure such as energy, transportation, and communication, will enhance industrial output and improve overall economic efficiency. 1.

References

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Assessing the Economic Impact of the Manufacturing Sector on Economic Growth in Nigeria

Abstract

References

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