ROLE OF ENTERPRENEURSHIP IN DRIVING ECONOMIC GROWTH IN NIGERIA (1990-2023)

This study examines the role of entrepreneurship on economic growth in Nigeria using annual time series data covering the period from (1990-2023). Real Gross Domestic Product (RGDP) is used as a proxy for economic growth, while Self-employed (SEMP), Lending Interest rate (LIR), and Real Exchange Rate (REXR) serve as independent variables. The study employed, unit root tests (ADF test), Johansen cointegration test, Ordinary Least Squares (OLS) regression, and Granger causality test. The findings reveal that self-employment and lending interest rate have a negative and statistically insignificant effect on economic growth. However, the real exchange rate (REXR), however, shows a positive and statistically significant effect on economic growth. Furthermore, the finding shows that there is a long-run equilibrium relationship between economic growth, self-employment, real exchange rate, and lending interest rate. The Granger causality test results reveal that there is a two-way relationship between GDP and lending interest rates also, there is a one-way relationship from exchange rate (REXR) to GDP, furthermore, there is no direct relationship between self-employment (LSEMP) and GDP. The study recommends that Nigeria to harness the full potential of entrepreneurship as a driver of economic growth, the government must implement policies that address key challenges in the business environment, improve financial accessibility, and create a supportive ecosystem for small and medium-sized enterprises (SMEs).