INDUSTRIAL OUTPUT AND ECONOMIC GROWTH OF NIGERIA: A SUB-SECTORIAL ANALYSIS

The study evaluated the impact of industrial sector output on the economic growth of Nigeria. The ex-post facto research design was applied on aggregate secondary, time series data sourced from Central Bank of Nigeria (CBN) Statistical Bulletin for the period 1981 to 2021. Data collected were analysed using the Johansen approach to co-integration and Vector error correction model. Findings from the study indicated that there exists a long run and short run relationship between economic growth and industrial sector output. Furthermore, construction subsector, electricity, gas, steam and air conditioner subsector, mining and quarry subsector, manufacturing subsector and water supply, sewage, waste management subsector all had positive impact on the economic growth of Nigeria, but the impact of mining and quarry and manufacturing subsectors were not significant. The study concluded based on empirical evidence that Industrial sector output influences economic growth. The study among other things recommended that Government should make the mining and quarry sub sector more transparent to reduce corruption and attract more investment. Government should endeavor develop a more efficient framework to verify and pay contactors that have executed state projects. Electricity, gas, steam and air conditioner subsector should be opened up for real private sector participation. The ease of doing business in Nigeria should be streamlined to eliminate conflicting policies and multiple taxation. Finally increased budgetary allocation to stimulate water supply, sewage, waste management should be undertaken.