Effect of sector-specific domestic investments on economic growth in Nigeria: a comparative analysis of agriculture, manufacturing, and services

This paper investigates the relative contributions of industry, services, and agriculture to Nigeria's economic growth. The research study covers a period of 24 years, from 2000 to 2023. Data are obtained from the Central Bank Statistical Bulletin and World Development Indicators. The estimation technique employed shall be the Autoregressive Distributed Lag. These results make it clear that if economic development is to be witnessed in Nigeria, the country needs investments in domestic agriculture. On one hand, industry significantly negatively impacts economic growth in the long run while being insignificant in the short run, according to this research. Investment in local manufacturing negatively influences economic development in Nigeria; this suggests inefficiency or a structural bottleneck that may stand in the way of the capacity of the country for growth. However, the service industry is a major determinant of economic growth in the country because of its positive influence on the economic development of Nigeria. The findings of this study suggest that such policies aimed at increasing domestic investments in services and agriculture while tackling the challenges of manufacturing industries would be critical for long-term economic growth, considering the proportionate importance of each sector. Based on this, the report calls for an investment approach that is more sophisticated, taking into consideration the needs of individual sectors and their linkages to the Nigerian economy in general.