Evaluating the Contribution of Nigeria’s Transport Sector to Economic Growth from 1970 to 2023

Abstract

The contributions of the transport sector to the economic growth of a developing country like Nigeria are indeed significant and multifaceted. Transport infrastructure, including roads, railways, airports, and ports, plays a critical role in facilitating trade, enhancing mobility, and improving access to markets and services. A well-developed transport system not only promotes efficient movement of goods and services but also supports various sectors of the economy, such as agriculture, manufacturing, and tourism. This research work on the development and contribution of the transport sector to Nigeria's gross domestic product from 1970 to 2023 provides valuable insights into the significant role that transportation plays in driving economic growth. The research utilized regression analysis, specifically the ordinary least squares method, to examine the relationship between the transport sector and economic growth in Nigeria. This analytical approach allows for a robust assessment of how variations in the transport sector output impact the overall gross domestic product. The findings add to the existing literature on economic growth models but also offer valuable insights for policymakers and stakeholders in the transport industry, highlighting the critical role that transportation plays in driving economic development in Nigeria. The researcher recommended that the federal government significantly increase its investment in the transportation sector to enhance its contributions to economic growth. Emphasizing the need for a diversified transportation network, the researcher highlighted the importance of developing alternative modes of transport, such as railways and water transport infrastructure. Investing in railways can provide a more efficient and cost-effective means of moving goods and people over long distances, reducing the burden on road networks and alleviating traffic congestion. Similarly, enhancing water transport infrastructure can offer a viable alternative for freight transportation, particularly in a country like Nigeria, which has extensive waterways. By diversifying transportation options, the government can improve the overall efficiency of the transport sector, making it more accessible and affordable for users. This approach would not only ease the pressure on road and air transport systems but also contribute to the reduction of transportation costs, ultimately benefiting consumers and businesses alike. Furthermore, such investments are likely to stimulate economic activity by facilitating trade, attracting investment, and promoting regional development. Therefore, the researcher concluded that prioritizing the transportation sector's development is crucial for achieving sustainable economic stability and growth in Nigeria.