EMPIRICS OF INDUSTRIALIZATION AND POVERTY REDUCTION IN NIGERIA: IS THERE A CAUSATIVE RELATIONSHIP?

Nigeria is second only to India as the world's poverty capital. Despite having a wealth of natural and human resources at their disposal, economic actors in the country have been unable to generate significant growth. In the first quarter of 2023, 41% of Nigeria's youth were unemployed, and 84% of Nigerians lived in extreme poverty, with less than $1.9 per day to spend. Sixty-three percent of Nigerians, or 133 million people, live in multidimensional poverty (WDI, 2023) due to the country's economic situation. This overwhelming evidence makes it imperative that we thoroughly investigate the link between industrialization and poverty reduction in the country. Using annual time series data from 1981 to 2019, the study used a pairwise granger causality test and multiple regression analysis to objectively examine the correlation between industrialization and poverty reduction in Nigeria. The findings point to a negative relationship between industrial sector productivity and multidimensional poverty, and the granger causality test indicates that raising productivity in the manufacturing sector will have a positive impact on Nigeria's GDP per capita. The study concluded that a sustained industrial improvement in productivity and growth, which would generate job opportunities and reduce poverty, could be achieved by improving Nigeria's industrial sector in more strategic ways. The report finds that industrialization is essential for growth in the twenty-first century.