Industrial Sub-Sectors Performance and Economic Development in Nigeria
DOI:
https://doi.org/10.51699/cajitmf.v7i4.1340Keywords:
Economic Development, Construction SConstruction Sector, Mining and Quarrying Sector, nufacturing Sector, Utility SectorAbstract
This study investigates the affiliation between industrial sub-sector performance and economic development in Nigeria from 1980 to 2025. The indicators used are manufacturing sector, mining and quarrying sector, construction sector and utility sector. The data were sourced from the Central Bank of Nigeria (CBN) Statistical bulletin. The study employed the Augmented Dickey Fuller (ADF) Unit root test, Johansson Co-integration tests, Error Correction Mechanism (ECM) model to ensure data stationarity and robust examination of short-run connections. Furthermore, the ECM (-1) results is -0.743865 or 74 % in absolute term and this indicates the speed of adjustment from the long run to its short run dynamics. The granger causality tests indicate that bi-directional associations exist among construction sector and human development index, manufacturing sector and human development index, mining and quarrying sector and human development index, construction and manufacturing sector in Nigeria. Again, uni-directional associations exit among manufacturing sector and mining and quarrying sector, manufacturing sector and construction sector, mining and quarrying sector and manufacturing sector. Finally, non-directional relationship existed among utility sector and human development index, Utility sector and construction sector, manufacturing sector and utility sector and mining and quarrying and utility sector. The study concludes that manufacturing sector output, the mining and quarrying sector output, construction sector output and utility sector output significantly impacts on the economic development of the Nigeria. The study recommends steady electricity in the economy as it acts as a positive channel to improving the industrial sector performances in Nigeria.
References
B. V. Oyeku, “Labor force dynamics and economic growth sustainability in Nigeria,” Journal of Business Administration and Social Studies, vol. 8, no. 1, pp. 57–66, 2024.
M. A. Loto, “The determinants of output expansion in the Nigerian manufacturing industries,” Journal of Emerging Trends in Economics and Management Sciences, 2012.
H. O. Amusa, R. Mabugu, and A. Adeniran, “Industrialization, agricultural productivity and economic growth in Nigeria,” Journal of Economic Studies, vol. 46, no. 2, pp. 325–341, 2019.
Z. I. Aliya and J. C. Odoh, “Impact of industrialization in Nigeria,” European Scientific Journal, vol. 2, no. 10, pp. 1–11, 2016.
M. B. Amar, “Does industrialization matter for economic growth? Evidence from African economies,” vol. 8, no. 2, pp. 139–152, 2014.
M. A. Adejugbe, “Industrialisation, distortions and economic development in Nigeria since 1950,” in Industrialisation, Urbanisation & Development in Nigeria 1950–1999, M. O. A. Adejugbe, Ed. Lagos, Nigeria: Concept Publications Ltd, 2004.
L. Effiom and E. B. Udah, “Industrialization and economic development in a multicultural milieu: Lessons for Nigeria,” British Journal of Economics, Management & Trade, vol. 4, no. 11, pp. 1772–1784, 2014.
E. C. Obioma and U. M. Ozughalu, “Industrialization and economic development: A review of major conceptual and theoretical issues,” presented at The Challenges of Industrialization: A Pathway to Nigeria Becoming a Highly Industrialized Country in the Year 2015, Nigerian Economic Society, Ibadan, Nigeria, 2020.
Central Bank of Nigeria, Annual Report and Statement of Account. Abuja, Nigeria: Central Bank of Nigeria, 2023.
F. C. Metieh and C. Mgbomene, “Tradeoff between inflation and unemployment: Implications on the growth of the Nigerian economy,” International Journal of Multidisciplinary Research and Growth Evaluation, vol. 6, no. 1, pp. 375–386, 2025.
Nairametrics, “Industrial sector performance in Nigeria,” Lagos, Nigeria, 2023. [Online]. Available: https://nairametrics.com
A. Ekpo and O. Umoh, “Foreign direct investment in Nigeria: Evidence from time series data,” Economic and Financial Review, vol. 35, pp. 13–23, 2016.
E. E. Ideba, E. O. Iniobong, W. Otu, and N. B. Itoro, “Analysis of agricultural public capital expenditure and agricultural economic growth in Nigeria 1961–2010,” American Journal of Experimental Agriculture, vol. 4, no. 4, pp. 443–456, 2014.
L. S. Badriah, A. S. Alisjahbana, K. Wibowo, and F. Hadiyanto, “Labour productivity growth in the industrial sector of Indonesia: Structural bonus or structural burden?” Malaysian Journal of Economic Studies, vol. 56, no. 1, pp. 139–159, 2019.
B. K. Anyanwu, U. N. Kalu, and O. U. Alexanda, “The effect of industrial development on economic growth: An empirical evidence in Nigeria 1973–2013,” European Journal of Business and Social Sciences, vol. 4, no. 2, pp. 127–140, 2015.
B. K. Obioma, U. N. Anyanwu, and A. O. Kalu, “The effect of industrial development on economic growth: An empirical evidence in Nigeria (1973–2013),” European Journal of Business and Management, vol. 7, no. 13, pp. 20–35, 2017.
K. G. Egbulonu, H. C. Dim, and P. U. Agba, “Economic recession and industrial growth in Nigeria,” International Journal of Social and Behavioral Sciences, vol. 8, no. 4, pp. 78–87, 2018.
N. Haraguchi, C. F. C. Cheng, and E. Smeets, “The importance of manufacturing in economic development: Has this changed?” World Development, vol. 93, pp. 293–315, 2017.
A. S. Bakare, “An econometric analysis of sustainable agriculture and rural development in Nigeria: A vector autoregressive approach (VAR),” Journal of Agricultural Economics and Development, vol. 2, no. 5, pp. 184–193, 2013.
P. Bustos, B. Caprettini, and J. Ponticelli, “Agricultural productivity and structural transformation: Evidence from Brazil,” American Economic Review, vol. 106, no. 6, pp. 1320–1365, 2016.
A. Afolabi and O. T. Laseinde, “Manufacturing sector performance and economic growth in Nigeria,” in Proc. International Conference on Engineering for Sustainable World, vol. 1378, no. 3, 2019.
B. Afolabi and S. Ogoh, “Industrial output and economic growth in Nigeria,” European Journal of Scientific Research, vol. 147, no. 1, pp. 87–96, 2017.
V. U. Oboh and A. I. Adeleke, “Accelerating inclusive agricultural growth in Nigeria: An examination of strategic issues, challenges and policy options,” International Journal of Development and Economic Sustainability, vol. 4, no. 6, pp. 1–25, 2016.
S. Aboagye, “The implication of economic growth, industrialization and urbanization on energy intensity in Sub-Saharan Africa,” Journal of Applied Economics and Business Research, vol. 6, no. 4, pp. 297–311, 2016.
World Bank, World Bank Development Report. Washington, DC, USA: World Bank, 2024.
P. Romer, “Endogenous technological change,” Journal of Political Economy, vol. 98, no. 5, pp. S71–S102, 1990.
J. J. Umoinyang and F. A. Dimoji, “Industrial sector performance and economic development in Nigeria,” International Journal of Humanities Social Science and Management, vol. 5, no. 4, pp. 103–121, 2025.
Okuneye, “Industrial sector performance and economic growth in Nigeria,” 2025.
A. C. Florence and G. Otto, “Industrialization and economic growth in Nigeria, 1990–2024,” Economy, vol. 12, no. 2, pp. 108–119, 2025.
I. B. Odusanya, A. K. Toriola, and F. A. Odunayo, “The nexus between labour productivity and agricultural development in Sub-Saharan Africa (1991–2021),” International Journal of Food and Agricultural Economics, vol. 11, no. 4, pp. 269–282, 2024.
M. H. Pesaran, Y. Shin, and R. J. Smith, “Bounds testing approaches to the analysis of level relationships,” Journal of Applied Econometrics, vol. 16, no. 3, pp. 289–326, 2001.
D. A. Dickey and W. A. Fuller, “Likelihood ratio statistics for autoregressive time series with a unit root,” Econometrica, vol. 49, no. 4, pp. 1057–1072, 1981.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Memoye Suotor, Chidi Wosu
This work is licensed under a Creative Commons Attribution 4.0 International License.
In submitting the manuscript to the Central Asian Journal of Innovations on Tourism Management and Finance, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere,
- The publication has been approved by the author(s) and by responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
License and Copyright Agreement
Authors who publish with Central Asian Journal of Innovations on Tourism Management and Finance agree to the following terms:
- Authors retain copyright and grant the Central Asian Journal of Innovations on Tourism Management and Finance right of first publication with the work simultaneously licensed under Creative Commons Attribution License (CC BY 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the Central Asian Journal of Innovations on Tourism Management and Finance published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
