THE IMPACT OF INFRASTRUCTURE FINANCING ON INDUSTRIAL SECTOR PERFORMANCE IN NIGERIA 1986-2022

Abstract

This study investigated the impact of infrastructure financing on industrial sector performance in Nigeria 1986-2022, the specific objectives of the study were to: investigate the impact of government economic infrastructure financing on the performance of the industrial sector in Nigeria; determine the impact of government social infrastructure financing on the performance of the industrial sector in Nigeria; and investigate the effect of government industrial loans on the performance of the industrial sector in Nigeria. The study adopted quantitative research using time series data and employed the autoregressive distributed lad (ARDL) to analyze the data. The series indicated to be stationary at 1(0) and 1(1). The ARDL Bounds test indicated evidence of long-run relation of the variables. The major findings of the study were: government economic infrastructure financing was positive but not significant, social infrastructure financing was positive and significant, and government industrial loan was positive and significant. The study concluded that infrastructure financing impacted significantly on industrial sector within the period reviewed. The implication of these findings for policy is that government infrastructure interventions are streamlined towards economic and social activities. Based on the findings, the study recommended that there is need for the government to embark on aggressive expansion programs on economic infrastructures; and also there is need to ensure that infrastructures provided are accompanied by proper maintenance mechanism to ensure optimal functioning and benefits.

Keywords: Economic and social infrastructure, Finance, industrial sector, ARDL.