Industrialization Strategies and Economic Growth in Nigeria

Taofeek Ajani Lamidi PhD

doi:10.56201/ijebm.vol.12.no9.2026.pg82.108

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Industrialization Strategies and Economic Growth in Nigeria

Taofeek Ajani Lamidi PhD

Abstract

This study examined the impact of industrialization strategies on economic growth in Nigeria using annual time-series data covering the period 1980–2018. Real gross domestic product was employed as the proxy for economic growth, while industrial production index represented the principal measure of industrialization. Trade openness , aggregate bank lending , tariff , exchange rate and inflation were included as complementary explanatory variables. Secondary data were obtained from the Central Bank of Nigeria Statistical Bulletin, International Financial Statistics and World Development Indicators. The study employed Dickey-Fuller Generalised Least Squares and Phillips-Perron unit-root tests, followed by the Autoregressive Distributed Lag bounds- testing procedure and an Error Correction Model. Analysis of Variance and the Welch test were also employed to examine differences among the means of the series. The unit-root results established that the variables were integrated at levels and first differences, with none integrated at order two. The ARDL bounds test produced an F-statistic of 10.02356, exceeding the relevant upper-bound critical values and confirming a long-run relationship among economic growth and the industrialization strategy variables. The short-run results showed that industrial production, trade openness and aggregate bank lending had positive and statistically significant effects on real GDP, while exchange rate had a negative and statistically significant effect. Tariff and inflation were statistically insignificant in the short run. In the long run, industrial production, trade openness and aggregate bank lending had positive and statistically significant effects on real GDP, while exchange rate and inflation had negative and statistically significant effects. Tariff and lagged RGDP were statistically insignificant. The error correction coefficient of -0.4503 indicated that approximately 45.03% of short-run disequilibrium was corrected within each period. The ANOVA F-test and Welch F-test both produced probability values of 0.0000, indicating statistically significant differences among the means of the series. The study concludes that industrialization strategies significantly contribute to economic growth in Nigeria, although their effectiveness depends on financial development, trade integration and macroeconomic stability. The study recommends strengthening domestic industrial production, expanding affordable credit to productive sectors, promoting export-oriented industrialization, maintaining exchange-rate stability, controlling inflation and improving the coordination and implementation of industrial policies.

Keywords

Industrializationeconomic growthindustrial productiontrade opennessbank lendingexchange rateinflationNigeriaARDL. P-ISSN 2695-186X

References

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Industrialization Strategies and Economic Growth in Nigeria

Abstract

Keywords

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