Assessment of Government Liberalization Policy and the Growth in Nigeria’s Trade Industry

Abstract

Following the outbreak of COVID-19 and the contraction of government revenue, it has become increasingly difficult for government to continue with “subsidy oriented” policies hence, this paper evaluates Nigeria’s liberalization policies as a major drivers of trade growth in the country.  A quantitative approach was adopted in this paper. Data used in this paper were secondary data sourced from World bank indicators and Central Bank of Nigeria Statistical Bulletin (1980-2018 version). This paper used Error Correction Classical Linear Regression estimate to analyse the data. The result of the study showed that changes in the key liberalization policy variables have significant influence on output growth but not statistically significant to trade growth. Industrialization oriented policies was therefore recommended for Nigeria to actualize her dreams of being an industrialized country, a strong and competitive institution that foster a sustainable industrial sector through policy is also advised. This study adds to the limited available evidence concerning the contribution of government liberation policy on the growth of Nigeria trade sector. It stands as the first to consider trade openness, government liberation policy and the Nigeria industrial sector. 

Received: 18 June 2023 / Accepted: 15 February 2024 / Published: xx March 2024