Moving The Nigerian Economy From Recession To Renaissance: Where Rests The Solution?

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.