Sectorial Performance and Economic Growth in Nigeria Experience From 1991-2023
CHAPTER ONE
Objectives of the Study
The primary objectives of this study are:
- To analyze the relationship between sectoral performance and economic growth in Nigeria from 1991 to 2023.
- To identify the sectors that have had the most significant impact on Nigeria’s economic growth during the study period.
- To evaluate the role of government policies in enhancing sectoral performance and their subsequent effect on economic growth in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
Preamble
The literature review plays a crucial role in contextualizing the study of sectoral performance and economic growth in Nigeria, providing a foundation for understanding the existing body of knowledge and identifying gaps that this research aims to address. This chapter will explore key themes, including economic growth, sectoral performance, economic diversification, resilience against economic shocks, policy implications, stakeholder roles, and global influences. The objectives of this literature review are to synthesize relevant concepts, evaluate theoretical frameworks, analyze empirical studies, and highlight gaps in the literature, thereby establishing a comprehensive backdrop for the study’s objectives and significance.
Conceptual Review
Economic Growth
Economic growth is a fundamental concept in economics that refers to the increase in the production of goods and services in an economy over a specific period. It is typically measured in terms of real Gross Domestic Product (GDP), which adjusts for inflation to provide a more accurate reflection of an economy’s performance. Economic growth signifies the overall health of an economy, influencing various aspects of national development, such as employment rates, living standards, and public welfare. It plays a crucial role in determining the financial stability and quality of life for citizens within a nation. As a result, understanding the dynamics of economic growth is vital for policymakers, researchers, and stakeholders involved in national and global economic planning (Kim, 2019).
One of the primary reasons economic growth is significant is its ability to enhance the living standards of the population. When an economy grows, it generally leads to higher incomes, increased employment opportunities, and improved access to goods and services. This is particularly important in developing countries like Nigeria, where economic growth can alleviate poverty and improve social conditions. Moreover, sustained economic growth is essential for generating government revenue, which can be utilized for public services and infrastructure development. Thus, the implications of economic growth extend beyond mere figures; they profoundly affect societal well-being and future prospects (Meyer & Sanusi, 2019).
CHAPTER THREE
METHODOLOGY
Introduction
This chapter discusses the methodology used to analyze the relationship between sectoral performance and economic growth in Nigeria, with a focus on the agricultural, manufacturing, and oil and gas sectors over the period 1991 to 2023. Key elements covered include the research area, design, population, sample, data collection, and estimation techniques, leading to the specification of a multiple regression model designed to capture the study’s objectives.
Research Area
The research area for this study is Nigeria, chosen due to its diverse economic sectors, particularly agriculture, manufacturing, and oil and gas, which have historically driven the country’s economic growth. As reported in the World Development Indicators (2021), these sectors exhibit distinct growth patterns influenced by domestic policies, global economic conditions, and structural changes within the Nigerian economy. Given the complex and dynamic nature of Nigeria’s economic landscape, it was essential to focus on macroeconomic data representing each sector’s performance and contributions.
CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION OF FINDINGS
Preamble
Chapter 4 presents a comprehensive analysis of the sectoral performance and economic growth in Nigeria from 1991 to 2023. It examines the contributions of key sectors—agriculture, manufacturing, and oil and gas—to the nation’s Gross Domestic Product (GDP) and the impact of government policies, particularly external debt, on economic development. The chapter employs descriptive statistics, correlation estimates, regression analysis, and ANOVA to interpret the interplay between these variables. Through this analysis, it aims to provide valuable insights into the challenges and opportunities within Nigeria’s economy, highlighting the importance of diversification and effective policy implementation for sustainable growth.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary of Findings
The analysis of sectoral performance and economic growth in Nigeria from 1991 to 2023 provided valuable insights into the dynamics between key economic sectors and the overall economic landscape. This chapter summarizes the findings from the study, focusing on the contributions of agriculture, manufacturing, and oil and gas sectors to Nigeria’s Gross Domestic Product (GDP), as well as the influence of external debt and government policies on these relationships.
The descriptive statistics revealed that the mean GDP over the study period stood at approximately $278.09 billion, with a relatively low standard deviation of $29.48 billion. This stability indicated that Nigeria’s economy had undergone fluctuations but maintained a consistent average GDP level during the analyzed years. However, the skewness value of 0.048 suggested that the GDP distribution was fairly symmetrical, while the kurtosis of -1.525 indicated a relatively flat distribution with light tails. These findings signified that Nigeria’s economic performance had not only been stable but also predictable, implying that external factors and domestic policies influenced its growth trajectory.
The agricultural sector exhibited an average contribution of approximately 31.84% to GDP, indicating its significant role in the economy. Despite facing numerous challenges, such as inadequate infrastructure and climate variability, the sector’s performance remained stable, as indicated by a standard deviation of just 1.10%. This suggests a relatively consistent output, underscoring the importance of agriculture as a foundation for economic stability and food security in Nigeria. The findings reinforced the notion that enhancing agricultural productivity could further bolster the overall economic growth of the country.
Recommendations
Based on the research objectives concerning sectoral performance and economic growth in Nigeria from 1991 to 2023, the following recommendations are proposed:
- Enhancing Agricultural Productivity: The government should implement targeted programs to enhance agricultural productivity, including investments in modern farming techniques, infrastructure development, and access to credit for farmers. Encouraging the adoption of technology and sustainable practices will not only increase yield but also contribute significantly to GDP growth.
- Promoting Manufacturing Sector Growth: To strengthen the manufacturing sector, the government should create an enabling environment through favorable policies, tax incentives, and support for small and medium-sized enterprises (SMEs). Initiatives aimed at enhancing the supply chain, reducing import dependency, and improving access to raw materials can bolster the manufacturing sector’s contribution to economic growth.
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