TRADE PERFORMANCE AND ECONOMIC GROWTH IN NIGERIA

Abstract

The main objective of the study was to evaluate the effect of international trade on the economic growth in Nigeria (1986-2024). The specific objectives are to; ascertain the effect of balance of payments on the gross domestic product of Nigeria and determine the effect of imports on the gross domestic product of Nigeria. Ex-post facto design was adopted for this study. Ordinary Lease Square (OLS) was used in testing the two hypotheses formulated. Decisions were based on a 5% level of significance. Results showed that balance of payment has negative but no significant effect on Nigeria’s Gross domestic product of Nigeria and import trade has negative but no significant effect on Nigeria’s Gross domestic product of Nigeria. Based on findings, it was recommended that manufacturing industries should improve on their production so that their output would be competitive in the global market. Excise duties should be lowered so as to encourage local industries so as to draw foreign investors to Nigeria. It is necessary that conscious efforts should be made by government to fine-tune the various macroeconomic variables in order to provide an enabling environment to stimulate foreign trade by engaging in more in production so as to reduce importation.