Moving the Nigerian Economy From Recession to Renaissance: Where Rests the Solution?

International Organization for Scientific Research - Journal of Economics and Finance, 9 (2), 75-90

16 Pages Posted: 7 Jan 2019

See all articles by Ebele Nwokoye

Ebele Nwokoye

Nnamdi Azikiwe University - Department of Economics

Christopher Kalu

Nnamdi Azikiwe University - Department of Economics

Chinedum Nwosu

Alvan Ikoku Federal College of Education

Date Written: March 2018

Abstract

Given its consumptionist nature, economic activities in Nigeria are mainly driven by household aggregate consumption expenditure with greater percentage of the spending on consumer-goods-importation. A statistical performance-illustration of the sectoral components of Nigeria’s gross domestic product (GDP) provided pointers to a recession and further provided insights towards facilitating functional dimensions for moving the economy from recession to renaissance. Evidences from the sectoral scrutiny showed asymmetric growth in GDP and its major components. While growth in agriculture, construction, trade, and service sectors boosted GDP growth in 2015, only the agricultural and service sectors recorded positive growths in the making of 2016 GDP leaving the abysmal performance of the other sectors accountable for the current recession. This study also documented a positive strength of relationship between the growth rates of Nigeria’s real GDP and service sector contributions — a cursor to the role played by human capital development, administrative and professional services. Based on findings, this study recommends import-substitution strategies aimed at encouraging growth in the non-oil trade balance and the provision of basic infrastructure aimed at boosting real sector activities in the industrial, trade and construction sectors so as to actualize the country’s desire for economic diversification.

Keywords: aggregate demand/supply, economic growth, GDP, Nigeria, recession, sectoral contributions

JEL Classification: E01, EYE, O40, O41

Suggested Citation

Nwokoye (nee Nwabude), Ebele and Kalu, Christopher and Nwosu, Chinedum, Moving the Nigerian Economy From Recession to Renaissance: Where Rests the Solution? (March 2018). International Organization for Scientific Research - Journal of Economics and Finance, 9 (2), 75-90. Available at SSRN: https://ssrn.com/abstract=3305652

Ebele Nwokoye (nee Nwabude) (Contact Author)

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

HOME PAGE: http://www.unizik.edu.ng/profile/nwokoyees

Christopher Kalu

Nnamdi Azikiwe University - Department of Economics ( email )

Enugu-Onitsha Expressway
Nnamdi Azikiwe University
Awka, Anambra
Nigeria

Chinedum Nwosu

Alvan Ikoku Federal College of Education ( email )

Owerri, South-East
Nigeria

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