THE ROLE OF INFRASTRUCTURE IN ECONOMIC TRANSFORMATION IN NIGERIA

The study investigated the role of infrastructure in economic transformation in Nigeria using annual data for the period of 1980 to 2011. Ordinary Least Square (OLS) technique was employed. Expenditures on education, health and transportation and communication sector were used as proxy for infrastructure. The ADF test suggests that the series are random work processes in their level form. The empirical findings suggest evidence of long run equilibrium relationship between infrastructure and economic transformation in Nigeria. It further shows that infrastructure plays both positive and significant role in transforming the Nigerian economy. This findings support the finding of Ogunnowo and Oderimde (2012). The paper recommended that adequate funding of infrastructure in key sectors of the economy should be provided. Also, Nigerian government should ensure transparency and good governance to ensure proper utilization of the funds provided.