INFRASTRUCTURE DEVELOPMENT AND INDUSTRIALISATION IN NIGERIA
Abstract
This study examines the impact of infrastructure development on industrialization in Nigeria from 1996 to
2023. Key infrastructure indicators—access to electricity, internet penetration rate, and government
capital expenditure—were employed, while government effectiveness served as a control variable.
Manufacturing value added was used as a proxy for industrialization. Data were sourced from the Central
Bank of Nigeria (CBN) Statistical Bulletin and the World Bank’s World Development Indicators (WDI).
The analysis employed the Augmented Dickey-Fuller (ADF) Unit Root Test to assess stationarity, while the
Autoregressive Distributed Lag (ARDL) model was used to estimate both short-run and long-run
relationships. Findings from the bounds test confirmed the existence of a long-run relationship between
infrastructure development and industrialization in Nigeria. Specifically, access to electricity showed a
strong and positive impact on manufacturing value added in both the short and long run. Government
capital expenditure exhibited a significant long-run effect, while government effectiveness was positively
associated with industrialization in the short run. Interestingly, internet penetration did not show a
significant impact on manufacturing value added during the period under review. The study concludes that
infrastructure development plays a pivotal role in advancing Nigeria's industrial growth. Accordingly, it is
recommended that the Federal Ministry of Power intensify efforts toward nationwide electrification—
particularly in rural and industrial zones—to unlock the full potential of Nigeria’s manufacturing sector
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Published in Journal of Finance, Governance & Strategic Studies
ISSN: 2714-2573
This article appears in our peer-reviewed academic journal
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