Industrial Sector Performance and Poverty Reduction in Nigeria: 1981-2018
International Journal of Managerial Studies and Research
The study empirically examined industrial sector performance and poverty reduction in Nigeria and time series data were sourced from different sources spanning from 1981-2018. Econometric techniques, stationary unit test (ADF), Johansen Co-integration test, and techniques of Granger causality test, Ordinary Least Square (OLS) and multiple regressions were employed in the study. The regression estimated result revealed that aggregate industrial output (INDQ) had positive impact on poverty
... t on poverty reduction in Nigeria so also aggregate industrial employment (INDEM). The coefficients of the estimated results were; POVR = 49.14225+ 2.00E-06 INDQ + 1.58E-06INDEM and the R2 = 63.34%. From the result of the Granger causality test, the study revealed that aggregate industrial output (INDQ) granger caused poverty rate (POVR), poverty rate (POVR) granger caused aggregate industrial employment (INDEM), and aggregate industrial output (INDQ) granger caused aggregate industrial employment (INDEM) all depicting a unidirectional causality. The study recommends that the government of Nigeria should put in place the needed mechanism to ensure that budget allocation to industrial sector is increased for adequate industrialization for a purposeful increase in Gross Domestic Product (GDP) via increase in industrial output. Government poverty reduction strategies should be strengthened and financed adequately with proper coordination to ensure that funds are not misappropriated or diverted by government officials. The government should be proactive in terms of industrial policy consistency and continuity to make sure that uncompleted industrial projects are funded and monitored for proper industrialization. Technological development in the Nigerian industrial sector should be taken with utmost seriousness by the government, in partnership with the private sector, to address squarely the challenges of obsolete technologies which are counterproductive.