The aim of this paper is to identify the role industrial sector plays in driving the GDP of Nigeria. The paper further seeks to predict the long-run behavioral relationship between industrial production, non-oil exports and economic growth in Nigeria using data from 1970 -2007. Vector Error Correction Mechanism (VECM) was utilized to establish the co-integrating relationship between industrial production, non-oil exports and GDP. The paper reveals the existence of a positive and significant uni-directional relationship that runs from industrial production to non-oil exports. It was further evident in the study that the current policies on industrial production in Nigerian do not sufficiently encourage non-oil export. The paper therefore predicts an imminent collapse of the Nigerian manufacturing industries in the nearest future if immediate remedial measures are not quickly taken to strengthen the ailing industries. The paper among other things encourages the government to strengthen the legislative and supervisory framework of the Agricultural Credit Guarantee Scheme in Nigeria.

This paper aimed at examining the impact of Foreign Direct Investment (FDI) and Industrial Sector Performance on economic growth in Nigeria. This study utilized annual time series data for the period 1981-2015 using elaborate econometric analysis which tests the sensitivity of GDP to shocks in FDI and Industrial Sector Output, using the Impulse Response Functions (IRFs) and Variance Decomposition (VDC) techniques within a Vector Autoregressive (VAR) framework. The Johansen Cointegration test result reveals the absence of a long-run relationship between FDI, Industrial Sector Output and GDP. The result also shows the existence of a bidirectional relationship between FDI and Industrial Sector Output, GDP and Industrial Sector Output, with a unidirectional causality running from FDI to GDP. The VAR estimate shows that FDI had a slight significant positive impact on GDP, while Industrial Sector Output had a small significant positive impact on GDP at present, with a negative relationship observed at previous periods. The impulse response functions clearly reveal that GDP exhibited negative response to shocks in FDI up to the 3rd period, while the effect was positive from the 4th period henceforth, while GDP also exhibited a negative response to shocks in Industrial Sector Output throughout the period observed. The variance decomposition analysis further revealed that GDP was mainly driven by shocks in FDI, with industrial sector output contributing very little. The study concludes that Nigeria is yet to fully reap the benefit of FDI since its contribution to GDP is still very low at the moment, whilst the contribution of the industrial sectorin the country has not be vibrant enough to spur economic growth. The study therefore recommends among other things that social and economic infrastructure be improved as this will help lessen the burden of industrialist and eventually lower the cost of doing business and in turn attract FDI inflow into Nigeria.

This study examined the causality between non-oil export, financial sector development and economic growth in Nigeria. The study employed credit to private sector, total bank deposit, prime lending rate, market capitalization, money market instruments as proxy to measure financial sector development, while GDP was used to capture economic growth, using annual data from 1985 to 2015. All the variables were stationary at first difference using the Augmented Dickey Fuller (ADF) and Phillip Perron (PP) tests. The Johansen Cointegration test result showed that a long-run relationship between non-oil export, financial sector development and economic growth existed. The Granger causality test indicates that a bi-directional causality runs from total bank deposit, credit to the private sector and market capitalization to economic growth. Also, a unidirectional causality existed between prime lending rate and economic growth. The study shows that out of the five proxy for financial sector development, three showed significant causality with economic growth. These findings therefore imply that a bi-directional relationship exists between financial sector development and economic growth, indicating that a growth in the financial sector will cause same in the economy and vice versa. Finally, the study recommends that the government formulate policies that will enhance credit to the private sector, such as not operating the Treasury Single Account (TSA) Policy in a holistic manner, so that banks will have fund to propel their credit delivery function effectively; considering the fact that the public sector drives the Nigerian economy as it stands now. However for capital market development, investors protection policies should be enhanced in order to strengthen and improve public confidence in the capital market, such as reducing charges for the purchase and sale of securities and reduction of listing requirements for new companies on the exchange.

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