Volume 9, Number 3

Export Diversification Drive: The Role of Nigerian Manufacturing Sector

  Authors

Abiola Olawale M., Research and Economic policy Division, Nigeria

  Abstract

This research delves into the enigmatic relationship between Nigeria's manufacturing sector and the nation's drive for export diversification. Leveraging a regression analysis and time series data from 1985 to 2022, it paints a nuanced picture of their complex interplay. The analysis confirms the stationarity of all variables at first differenced. Additionally, the Johansen co-integration test reveals along-run equilibrium relationship between them, suggesting that while their short-term fluctuations may diverge, they are ultimately bound by a deeper interdependence.The analysis exposes a weak and negative association between the two, hinting at the meagre contribution of the manufacturing sector to export diversification during the studied period. This underscores the need for a critical reevaluation and targeted interventions to unlock the sector's potential as a powerful engine of export growth.Therefore, the study advocates for a paradigm shift in approach. Instead of government’s piecemeal efforts, it should champion the creation of a robust and vibrant manufacturing ecosystem, pulsating with innovation and productivity. This vision will envision modern factories humming with cutting-edge processes, meticulously crafting high-quality goods capable of holding their own on the global stage. From value-added agricultural products to sophisticated machinery, the potential portfolio of Nigerian exports is vast and brimming with promise.

  Keywords

Export Diversification, Manufacturing sector, Value added.