IMPACT OF IMPORTATION ON INDUSTRIAL GROWTH IN NIGERIA (1980-2020)

This study, investigates the impact of importation on industrial growth in Nigeria spanning from 1980 to 2020. The study employed data sourced from the World Development Indicators and Central Bank of Nigeria 1980-2020, and the Auto Regressive Distributed Lag Model (ARDL) method was used for the analysis. The findings of the study reveal a long-run relationship among the variables in the model. The result shows a significant positive correlation between interest rates (INR) and industrial output (IND), a negative and insignificant impact of importation growth (IMG) on industrial output, and a positive and significant relationship between exchange rates (EXR) and industrial output in Nigeria. Contrary to expectations, exchange rates and industrial output did not align with a priori expectations. The study also recommends that the Government of Nigeria should encourage and invest in local and infant industries in order to increase production of both consumption and capital goods thereby leading to economic growth. Government should patronize local made goods and discourage importation of foreign goods in Nigeria. Government should give room for private sector participation in the economy and also allow and attract foreign investors by creating an enabling and save environment for them in Nigeria. The government and policy makers in Nigeria should take urgent steps to make Nigeria highly globally competitive; this will pave way for economic growth in the country.