Economic Diversification Strategy and Nigerian GDP Growth

Abstract

This study examines the relationship between economic diversification strategies and gross domestic product (GDP) growth in Nigeria, focusing on recent policy interventions spanning 2023-2025. The research reveals that deliberate diversification into non-oil sectors, particularly agriculture, manufacturing, services, and information and communication technology, has become instrumental in achieving sustained economic growth. Recent data shows Nigeria achieved 3.4% GDP growth in 2024, driven predominantly by non-oil sector expansion (4.13% growth in Q2 2024). This paper analyzes the mechanisms through which sectoral diversification contributes to GDP growth and identifies critical policy frameworks enabling this transition. Key findings indicate that while diversification efforts yield positive results, persistent challenges, including infrastructure deficits, security concerns, and human capital gaps, constrain the pace of transformation. The study concludes that accelerating GDP growth toward Nigeria's 2030 objective of a one-trillion-dollar economy requires sustained commitment to diversification through coordinated public-private partnerships, technological innovation, and deliberate investment in priority sectors.

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