Comparative Analysis of Pre and Post Re-basing Economic Performance of Nigeria Construction Sector for Economic Development

Abstract

This study analysed pre and post re-basing economic performance of Nigeria construction sector with a view to ascertaining if significant improvements have been achieved in terms of construction output, construction growth rate, contribution to Gross Domestic Product (GDP) and economic development. Data were obtained from the publications of the Central Bank of Nigeria and the National Bureau of Statistics from 1981 to 2015, and analysed using Z test and Pearson correlation. Statistically, the study found that there was significant improvement in the construction sector outputs and contribution to GDP after re-basing as the computed Z scores (-8.0381) and (-5.4647) were greater than the critical value (1.96) at 5% significance difference respectively. The correlation coefficients (0.706) and (0.561) and the p-values (<0.00001) indicated a strong and significant correlations. However, there was no significant difference in the growth rate of construction sector and GDP after re-basing as the computed Z scores (-0.2388) and (0.2835) were less than the critical value (1.96). The correlation coefficient (0.030) and (0.036) and p-values (0.81126) and (0.776794) also showed a very weak and non-significant correlation. This implied that Nigeria economic re-basing has triggered improvement in construction output and contribution to GDP but not in construction growth rate and GDP growth rate as previously believed.

The Tripartite Dynamic Relationship between Poverty, Unemployment and Construction Sector: Empirical Evidence from Nigeria

“…Several studies (Oke, Ogungbile, Oyewobi, & Tengan, 2016;Okoye et al, 2016;Oladinrin, Ogunsemi & Aje, 2012;Olatunji, Oke, & Aghimien, 2016) have examined the impact of construction sector on the general economic development. Other studies (Auwal, 2012;Bidemi, 2016;Isa, Arham, & Dai, 2019;Omodero, 2019) have analyzed the relationships between government spending and poverty and unemployment reduction; and infrastructural development and poverty reduction (Chotia & Rao, 2017a;Ogun, 2010).…”

“…The industry has also benefited from the midand long-term economic development policies that underscore the infrastructure investment and opportunity creation in the transport, energy and real estate sectors (Oxford Business Group, 2020). Furthermore, the growth rate of the construction sector is even more unpredictable than the Gross Domestic Product (GDP) growth rate in the period of economic volatility (Okoye, Ngwu, Ezeokoli, & Ugochukwu, 2016). This implies that there is instability in the activities of construction sector that may affect the aggregate economic activities in the period of economic uncertainty (Okoye et al, 2016).…”

“…Furthermore, the growth rate of the construction sector is even more unpredictable than the Gross Domestic Product (GDP) growth rate in the period of economic volatility (Okoye, Ngwu, Ezeokoli, & Ugochukwu, 2016). This implies that there is instability in the activities of construction sector that may affect the aggregate economic activities in the period of economic uncertainty (Okoye et al, 2016).…”