CONTRIBUTION OF MANUFACTURING SECTOR ON REVENUE GENERATION IN NIGERIA 2007-2024

ABSTRACT This study examines the contribution of the manufacturing sector to Nigeria's revenue generation, Gross Domestic Product (GDP), and human development between 2007 and 2024. Nigeria's economy has long been heavily reliant on oil, with over 80% of government revenue and 90% of foreign exchange earnings stemming from the petroleum sector, while the manufacturing sector remains underdeveloped despite its potential to drive sustainable growth. Using a quantitative research design, the study employed descriptive and correlational approaches to assess the relationships between manufacturing output and key economic indicators. Secondary data were collected from audited financial statements, Central Bank of Nigeria reports, National Bureau of Statistics publications, and international reports from the World Bank and UNDP covering the period 2007 to 2024. The data were analyzed using descriptive statistics, multiple regression analysis, and Granger causality tests. The findings indicate that manufacturing output has a significant positive effect on revenue generation, GDP, and human development in Nigeria. Regression results revealed strong and statistically significant relationships between manufacturing output and the three dependent variables, while Granger causality tests confirmed that manufacturing output drives revenue generation and GDP growth, emphasizing a unidirectional causal link. These results suggest that strengthening the manufacturing sector can enhance economic diversification, boost government revenue, stimulate industrialization, and improve social well-being. The study recommends that policymakers implement consistent industrialization policies, improve infrastructure, provide financial incentives, and invest in workforce development to maximize the sector's contribution to national development.