Effects of Economic Diversification on Economic Growth in Nigeria

Abstract

This study evaluated the effects of economic diversification on Nigeria’s economic growth using information and communication technology (ICT) services contribution, arts and entertainment services contribution and real estate services contribution as exogenous variables. The study utilized data from Central Bank of Nigeria (CBN) statistical bulletin for the period 1981 to 2024. The research design adopted is ex-post facto. The ARDL econometric methodology was used for analysis and findings show that information communication technology (ICT), arts and entertainment, and real estate sectors individually had significant effects on economic growth. The study recommended that government should invest more in the ICT sector, by expanding broadband fiber-optic networks into underserved and rural areas. Low interest intervention financing initiatives should be established specifically for Nollywood filmmakers, music producers, and digital content creators to mitigate high capital costs. In addition, the government should also integrate advanced digital skills, coding, and data analytics into the curriculum of Nigerian universities and technical colleges to build a globally competitive local tech workforce, and strengthen institutions like the Nigeria Mortgage Refinance Company (NMRC) to provide long-term, single-digit interest mortgage facilities, driving demand and structured supply in the housing sector.