The Impact of Infrastructural Development on Nigeria's Industrial Sector

Abstract

The importance of infrastructure to the industrial sector of any economy cannot be overlooked, thus making its development key to the survival of the sector. The purpose of this study is to analyse the effects of infrastructure on the industrial sector of Nigeria. In that vein, ordinary least square method of regression analysis was adopted, using time series data spanning from 1990 to 2015. Industry value-added (% of GDP) was used as an indicator of Nigeria's industrial sector performance, while index of electricity consumption, gross capital formation, and federal government spending on transport and communication were used as indicators for infrastructural development. The results of the regression showed that the index of electricity consumption exerted a positive but insignificant impact on industry value-added; AFRREV VOL. 11 (3), S/NO 47, JULY, 2017 24Copyright © International Association of African Researchers and Reviewers, 2006-2017: www.afrrevjo.net. Indexed African Journals Online: www.ajol.info gross capital formation and federal government spending had a negative but significant impact on industry value-added on industry value-added (on a 5% confidence level). The study recommended that measures to revamp and maintain the power sector of Nigeria must be taken seriously to ensure better supply of power. It was also recommended that corruption be curbed and projects, for which funds are disbursed, be properly monitored so as to ensure that efficient and long-lasting infrastructure will be built and properly maintained to encourage greater industrial output.

Public infrastructural development and economic performance in Africa: a new evidence from panel data analysis

“…At this point, the results of this study have shown that infrastructural development impacts positively and significantly on GDP per capita growth in Africa. This is, however, contrary to the widely held view that Africa has been facing huge infrastructural deficit problem, at least in the last two decades (Mafusire et al 2017 ; Orji et al 2017 ). Indeed, this view raises the concern that our results may not have sufficiently captured the realities of African economies.…”

Infrastructure Development, Capacity Utilization and Manufacturing Value Added in Nigeria

“…The study by Orji, Worika, and Umofia (2017) reports that transport infrastructure does not support manufacturing sector productivity. Other infrastructure, electricity was found to have positive and insignificant effect on manufacturing performance.…”

Infrastructural Facilities and Industrial Development: An Empirical Investigation in the Lagos Region

“…Infrastructural facilities such as power supply and good road network do not ease the production of goods particularly in the fabrication, manufacturing, and processing of goods in the study area. The result of this finding corroborates the study of Orji et al (2017). Z tabeli 3 wynika, że 41,7% respondentów stwierdziło, że wpływ infrastruktury na badania i rozwój był słaby, a 5,8% było zdania, że wpływ był średni.…”

“…Adequate infrastructure is one of the characteristics of a well-industrialised economy, thereby impacting positively on the industrial sector (of the economy) which is seen as an engine of economic growth. Adequate and efficient infrastructural development not only does improve the quality of life of the people, but also promotes rapid industrialisation (Orji et al, 2017).…”

“…These studies, however, focused on the contribution of infrastructural facilities on the academic performance of students and housing development. There is little evidence on studies that investigate the impacts of infrastructure facilities on industrial development in Nigeria, although Olatunji et al (2016) and Orji et al (2017) attempted to assess the impact of infrastructural development on Nigeria's Industrial sector. The studies adopted the use of secondary data (time series data spanning from 1960 and 1990 to 2015) and established that investment in infrastructural facilities such as, among others, power supply, transportation, information, and communication have a positive impact on industrial development.…”