ABSTRACT

This study has investigated the effect of industrial sector on economic growth in Nigeria for a period of 37 years (1980 to 2016). The study adopted a linear multiple regression model and the OLS estimation technique. The study used GDP as the dependent variable while industrial sector, FDI, total savings and inflation were used as the explanatory variables. From the results gotten, industrial output has a positive relationship with economic growth and it is statistically significant.FDI was revealed to have a positive relationship with the gross domestic product in Nigeria. Thus, policies geared towards the attracting FDI, will have a positive effect on it and thereby resulting to an increase in the gross domestic product. Total savings from the result also have a positive relationship with economic growth in Nigeria and it is significant. And also inflation rate from the model has a negative relationship with economic growth and it is statistically insignificant.It is recommended that policy geared towards industrial sector development should be pursued such as giving incentives as tax holidays and providing cheap and easily accessible loans for this industries to tap into to further grow. It is thus concluded that industrial sector is a significant determinate of economic growth in Nigeria and such should be given high priority in government developmental policies.