| Title: | Investment in Infrastructural and Economic Growth in Nigeria from 1990 - 2022 |
| Author(s): | J.I. Onyema, A.A. Momodu, C.R. Amadi & O.V. Aninwagu |
| Abstract: | This research investigates the impacts of infrastructural investment on Nigeria’s economic growth from 1990 to 2022, utilizing time series data sourced from the CBN Statistical Bulletin and the World Development Indicators. The specific objectives of this study are to investigate the impact of investment in road and construction on Nigeria's GDP growth; assess the effect of investment in transport and communication on GDP growth; evaluate the influence of telecommunication developments on GDP growth; and to examine the impact of access to electricity on GDP growth in Nigeria. The dependent variable in the study is the GDP growth rate (annual %), while the independent variables include investment in roads and construction, access to electricity (% of population), investment in transport and communication, and fixed telephone subscriptions (per 100 people). The data analysis techniques utilized include the ADF unit root test, bounds cointegration, the autoregressive distributed lag (ARDL) estimation method and the residual diagnostic tests. The Augmented Dickey-Fuller (ADF) unit root tests revealed a mix of I(1) and I(0) series, indicating that the variables differ in their levels of integration. Evidence of cointegration was established, suggesting a long-term equilibrium relationship among the variables. The ARDL results revealed that investment in roads and construction exhibits a negative relationship with economic growth, which is not statistically significant; access to electricity has a positive relationship but is not statistically significant with economic growth; investment in transport and communication has a positive and statistically significant impact on Nigeria's economic growth; and fixed telephone subscriptions have a positive but not statistically significant impact on economic growth in Nigeria. Based on these findings, the study recommends, among other things, that the Nigerian government should conduct a thorough review of the current strategies and allocations in road construction. This review should aim to identify inefficiencies and misallocations of resources. |
| Keywords: | ARDL, ADF and Infrastructure investment |
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