Public-Private Partnership and Economic Growth in Nigeria (1981 – 2024)

Abstract

This study seeks to examine the impact of public-private partnership and economic growth in Nigeria, using secondary annual time series data from 1981 to 2024 on the underlisted variables from the Central Bank of Nigeria Statistical Bulletin and data from World Development Indicators (WDI). The dependent variable, economic growth, was proxied by Real Gross Domestic Product (RGDP), while Public-Private Partnership Investment (PPPINV), Private Capital in Infrastructure (PCINFRAST), Gross Capital Formation (GCF), Trade Openness (TOP), Inflation Rate (INFL), and Interest Rate Accruable to Public-Private Partnership (INTR) were the independent and control variables, respectively. The test mechanisms adopted were the unit root test for co-integration and the Autoregressive Distributed Lag (ARDL) technique. Findings revealed that there exists a positive and significant relationship between public-private partnership investment, private capital in infrastructure, gross capital formation, and interest rate in both the short and long run periods, suggesting that these variables contribute immensely to enhancing publicprivate partnership and therefore improved economic growth in Nigeria when properly harnessed. However, the inflation rate and trade openness exhibited a negative and insignificant relationship with public-private partnership and economic growth in both periods, showing that during the period under review, the underlisted variables had a devastating impact on economic growth in Nigeria. The study recommends that the government stabilize inflation, diversify trade, strengthen PPP governance, and channel investments into productive sectors. PPP investments should be increased by taking quick steps like accelerating projects and issuing bonds, as well as making long-term changes in laws, taxes, and financial markets.