MANUFACTURING SECTOR AND ECONOMIC GROWTH IN NIGERIA

Abstract

This study examines the impact of manufacturing sector on economic growth in Nigeria. The research is a quantitative research and time series and secondary data was used for the study over a period of 33 years from 1990 to 2023. Secondary data was used extracted from the CBN Statistical bulletin (2023). E-Views software was used to analyse the variables. The adopted the ARDL model as a technique for analysis. The study used GDP as the dependent variable and manufacturing sector output, exchange rate, inflation rate and interest rate as the independent variables. It was concluded that a significant positive relationship exists between manufacturing sector output and economic growth in Nigeria. It was recommended that government should encourage the growth of industries in Nigeria through establishment of favourable policies for industrial growth and development. The study also recommend that government should intensify effort at improving physical infrastructure notably in power supply and make it more accessible to manufacturers to reduce self-supply of electricity which brings huge operating cost. This suggests that economic openness and the interest rate must be combined with other vital factors to give the desired boost to industrialization development which in turn benefit the manufacturing sector and improve economic growth in Nigeria.