Infrastructure Development and Economic Growth Nexus: The Nigeria Experience (Published)
This study examined the impact of government infrastructural development on transportation (IFDT), road (IFDR), water (IFDW) and telecommunication (ITEL) as they influence the growth process of the Nigerian economy, proxy by real GDP (RGDP), from 1990 to 2023. Data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin (various issues), World Development Indicators (WDI), and National Bureau of Statistics (NBS). Four models were estimated to capture the influence of infrastructure development on GDP growth. The Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests were conducted to ascertain the level of stationarity of the series. Descriptive statistics and econometric methods of Auto-Regressive Distributive Lag (ARDL) model and Granger causality estimation tests were conducted to examine the long run relationship of the series.The analysis revealed that infrastructure development on transport services (IFDT) was positive and significant in explaining changes in real GDP of Nigeria. However, Infrastructure development on road (IFDR), water (IFDW) and telecommunication (ITEL) were negative and not significant in explaining changes in Nigeria’s real GDP within the study period. On this basis therefore, the study concludes that there is no long run relationship between the dependent variable (RGDP) and the explanatory variables (IFDT, IFDR, IFDW and ITEL). It was recommended that the government, in partnership with the private sector, should increase her investment in the provision of infrastructural facilities that are reliable, durable and affordable to the people, as this will not just reduce the cost of doing business but also attract foreign investors into the country. Proper and dedicated maintenance culture of existing infrastructure facilities should be prioritized as this will save government huge amount that can be channeled into other areas of development.
Keywords: Infrastructure development on water, Nigeria, Road, economic growth, telecommunication