Production Function Paradigm Shift Real Sector and Output Growth in Nigeria

The Nigerian economy has been precariously dependent on crude oil, whose price is determined exogenously on the world market, and as a result, Nigeria’s growth performance has deteriorated significantly in the last three decades, with adverse attendance effects on low GDP, widespread poverty, low job creation, infrastructural deficit, and general economic and social vices. Scholars and policymakers’ emphasis has switched, as expected, to the non-oil sector as a means of boosting and increasing Nigeria’s real sector factor productivity output growth. Using standard Cobb-Douglas production function approaches, the study investigated the production function paradigm shift real sector output growth in the Nigerian economy. The Augmented Production Function (APF) was used in the study, along with the Endogenous Growth Model (EGM) and standard tests for mean reversion and co-integration were employed. The finding shows that non-oil exports have an insignificant impact on rate of change in output growth in Nigeria. According to the findings. Apart from empirically providing information that has failed to back up recent claims of non-oil export-led growth in Nigeria, the study has also established a data benchmark for assessing future non-oil export trade performance in terms of its contributions to Nigerian economy real sector output growth.