INDUSTRIALISATION AND INDUSTRIAL OUTPUT NEXUS IN NIGERIA: A NEW EMPIRICAL EVIDENCE

Abstract

Infant industry protection is a common trend in Africa with the main aim of encouraging local industries to gain economies of scale. However, the result of this trend has not been shown in the industraliastion process of African countries, especially Nigeria. The article used Generalised Least Square (GLS) with time series analysis from 1987-2022. The results showed that tariffs had a low effect in protecting the infant industry in Nigeria. Tariff needs to change at the rate of 0.068 unit to bring about a unit change in industrial output. The research recommended a policy mix as a more viable policy option. Indigenisation policy should be combined with other infant industry protection policies such as production subsidy, import monopoly, imposition of embargo, exchange control, import quota, import license and preferential duties to achieve the desired industrialised economy.