Effect of Economic Diversification on Economic Growth in Nigeria

Abstract

This study evaluated the effect of economic diversification on economic growth in Nigeria using contributions of agriculture, mining, and manufacturing as exogenous variables for the period 1994 to 2024. The study adopted ex post facto research design, and collected data from the Central Bank of Nigeria Statistical Bulletin and the National Bureau of Statistics. The descriptive statistics and correlation analysis were used for the study. The multiple regression was used for analysis after testing for stationarity. The study found out that agricultural contribution had a coefficient of 0.308517 and a probability value of 0.0106 indicating a statistically significant at the 5% level. It was also found out mining contribution has a coefficient of 0.263885 and a probability value of 0.0297 indicating a statistically significant effect at the 5% level. However, manufacturing contribution had a coefficient of 0.024251, but a probability value of 0.8283, indicating that it had no significant effect at the 5 percent level of significance. The study recommended that the government intensify diversification of investments in agricultural production, formulate targeted macro-polices and invest more in the manufacturing sector to achieve long-term growth economic growth.