By: Ejegbu U. Oko, Ogbonnaya Ikwor Okoroafor, Anayochukwu B. Chukwu, Ikechukwu E. Okereke
Pages: 302–322, Volume: 3, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 2/1/2026, 2026
ISSN (Electronic): 2536-6742
DOI:
Effect of Industrial Development on Economic Growth in Nigeria
Abstract:
Industrial development remains a critical factor in Nigeria’s economic growth, with the potential to drive economic growth, create jobs, and enhance technological innovation. However, persistent challenges such as inflationary pressures, exchange rate fluctuations, and the economy’s overdependence on crude oil exports may dampen the sector’s performance. This study, therefore, examines the effect of industrial development on economic growth in Nigeria, using annual data from 1970 to 2023. The results from the Fully Modified Ordinary Least Squares (FMOLS) technique revealed that Industrial value added (INVA) negatively and significantly impacts GDP growth, suggesting that the sector has not reached its potential to drive the economy. Conversely, factors like human capital and infrastructure are positive drivers. The study recommends urgent structural reforms to revitalize the manufacturing base.
Keywords: Industrial development, Economic growth, Value addition, Diversification
How to Cite
Oko, E. U., Okoroafor, O. I., Chukwu, A. B., & Okereke, I. E. (2026). Effect of Industrial Development on Economic Growth in Nigeria. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 3(1), 302–322.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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