Abstract:

Increased productivity is necessary for improved manufacturing output, better living standards and sustained competitiveness of any country. Transition and structural change from traditional and modern economic sectors are needed for maximum productivity effects in addition to within-sector productivity. Human capital theory is used as theoretical framework in addition to empirical studies. Thus, Johansen co-integration is performed to examine the magnitude of labour productivity’s long-run impact on Nigeria’s manufacturing output from 1986 to 2018. It was revealed that the non-conformity of other explanatory variables seems to counter the significantly positive effect of labour productivity on Nigerian manufacturing sector. Therefore, evidence was found that Nigeria has low labour productivity and fluctuating manufacturing output, especially since the nation is yet to fully recover from the last recession in 2015.