Innovation in Infrastructure and Industrialization: Issues and Challenges in Nigeria’s Economic Growth

Abstract

Nigeria's economic growth has been constrained by persistent infrastructure deficits, weak industrial performance, limited innovation, and institutional inefficiencies. This study examines the extent to which infrastructure development, industrialization, innovation, access to finance, institutional capacity, and corruption influence economic growth in Nigeria. Guided by Schumpeter's Innovation Theory and Endogenous Growth Theory, the study adopted an ex post facto research design using annual time-series data from the World Development Indicators and the National Bureau of Statistics. Descriptive statistics, unit root tests, cointegration analysis, and the Autoregressive Distributed Lag (ARDL) model were employed to estimate both short- and long-run relationships. The findings indicate that investment in infrastructure, manufacturing value added, and ICT adoption significantly promote economic growth, highlighting the complementary roles of infrastructure, innovation, and industrialization in driving sustainable development. In contrast, infrastructure development, access to finance, institutional capacity, and corruption exhibited negative but statistically insignificant effects, suggesting that structural and governance weaknesses undermine their growth-enhancing potential. The study concludes that achieving sustained economic transformation requires not only increased investment in infrastructure and industrialization but also stronger institutions, improved financial access, effective anti-corruption measures, and policies that foster technological innovation and productive investment. These findings provide empirical evidence to support integrated policy reforms aimed at accelerating Nigeria's long-term economic growth.