Industrial development and economic growth in Nigeria: Implications for economic recession

Abstract

Industrial sector remains a strong sector of any country; industrialization plays an important role in economic growth. Economic recession has severe negative and also some positive impacts on aggregate economic activities in Nigeria. Despite having plentiful natural largest market in West Africa, and abundant and cheap labour force, Nigeria industrial performance has been highly disappointing in the last decade. The hypothesis was tested using ordinary least square (OLS) statistical technique; this technique was used in testing the influence of the independent variable on the dependent variable, in analyzing industrial development and economic growth, implication of economic recession. It made use of time series data from (1981-2016). The result from this analysis is that industrial development affects economic growth in Nigeria positively, in Nigeria; economic growth is directly linked to the output of industries in the country. Economic recession affects economic growth negatively. The policy makers of the country are provided with a viable framework, that which is to develop the industrial sector through various policies. I therefore recommend that indigenization policies, savings, small and medium scale enterprises should be encouraged, import substitution should be implemented.