1.

DATA PRESENTATION
Table 1: Data of real GDP and Cement Output in Nigeria from 1981-2017
Year Real GDP △Real GDP Cement △Cement
1981 15258.00 - 190.943 -
1982 14985.08 -272.93 223.85 32.90
1983 13849.73 -1135.35 79.27 -144.58
1984 13779.26 -70.47 49.85 -29.41
1985 14953.91 1174.66 249.27 199.42
1986 15237.99 284.07 269.46 20.19
1987 15263.93 25.94 229.33 -40.13
1988 16215.37 951.44 298.88 69.55
1989 17294.68 1079.31 314.58 15.70
1990 19305.63 2010.96 221.11 -93.48
1991 19199.06 -106.57 246.03 24.93
1992 19620.19 421.13 250.52 4.49
1993 19927.99 307.80 259.49 8.97
1994 19979.12 51.13 236.81 -22.68
1995 20353.20 374.08 232.32 -4.49
1996 21177.92 824.72 221.35 -10.97
1997 21789.10 611.18 228.08 6.73
1998 22332.87 543.77 87.79 -140.29
1999 22449.41 116.54 87.51 -0.29
2000 23688.28 1238.87 87.13 -0.38
2001 25267.54 1579.26 100.75 13.62
2002 28957.71 3690.17 101.83 1.08
2003 31709.45 2751.74 105.89 4.06
2004 35020.55 3311.10 116.48 10.59
2005 37474.95 2454.40 129.37 12.89
2006 39995.50 2520.56 144.28 14.91
2007 42922.41 2926.90 161.60 17.32
2008 46012.52 3090.11 180.42 18.83
2009 49856.10 3843.58 199.97 19.55
2010 54612.26 4756.17 221.09 21.12
2011 57511.04 2898.78 238.20 17.11
2012 59929.89 2418.85 270.35 32.14
2013 63218.72 3288.83 376.45 106.10
2014 67152.79 3934.06 488.28 111.83
2015 69023.93 1871.14 596.17 107.89
2016 67931.24 -1092.69 564.21 -31.96
2017 68490.98 559.74 551.78 -12.44
Source: CBN annual statistical bulletin, 2017
 2. MODEL SPECIFICATION
The model used for the study is therefore, stated as follows;

△RGDP = f(△CEMENT)

Expressing the relationship in an econometric model, it then becomes:

△RGDPt = β0 + β1△CEMENTt + µt

Where:
△RGDPt = change in Real gross domestic product
△CEMENTt = change in cement output
µt = Error term

3. APRIORI EXPECTATION
It is expected that the output of cement sector generated will have positive impact on the
economic growth of Nigeria. Thus, β1 > 0

4. PRESENTATION OF RESULTS
Table 2: Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .374a .140 .115 1437.0801250

a. Predictors: (Constant), △Cement

Table 3: ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 11424873.645 1 11424873.645 5.532 .025b

1 Residual 70216775.708 34 2065199.286

Total 81641649.353 35

a. Dependent Variable: △Real GDP

b. Predictors: (Constant), △Cement
 Table 4 : Coefficientsa

Model Unstandardized Coefficients Standardized T Sig.

Coefficients

B Std. Error Beta

(Constant) 1386.840 242.676 5.715 .000

1
△Cement 9.164 3.896 .374 2.352 .025

a. Dependent Variable: △Real GDP

5. INTERPRETATION OF THE RESULTS

The estimated model is as follows:

△RGDPt = 1386.840 + 9.164△CEMENTt + µt

Table 4 presents the contribution of cement sector to GDP. The table shows that there is positive
and significant relationship between GDP and Cement sector output since the pvalue (0.025) is
less than the 5% level of significance.
The adjusted R2 value is 0.115; this implies 11.5% of the model is explained by the variable
(cement sector output) tested. The F statistic measures the overall fitness of the model. However,
the F=5.532 and Fvalue=0.0.025 shows that the model is fit.
Table 4 also reveals that cement sector contributed significantly to the RGDP. That is a unit
increase in cement’s sector output leads to approximately 9.164 units increase in GDP.

6. POLICY IMPLICATIONS
The policy implication of the findings is examined below:
The implications of these results is that cement sector has a positive impact on economic growth
in Nigeria and it is a significant determinant of Economic growth in Nigeria. The result of the
analysis of the contribution of cement sector output to GDP indicated that cement sector has
contributed positively to Nigeria’s Gross Domestic Product during the period (1981 – 2017)
considered. This being the case, government policies in the manufacturing sector should focus on
increasing capital formation in the sector through cement industry activities.
7. REASONS
The reason for a positive and significant relationship between the cement sector and economic
growth are:
  Government deliberate polices to reflate the economy that has led to increase the tempo of
activities in the construction industry and thus increase demand for cement.
 Government concessions and reliefs granted to cement manufacturers in October 2009
especially on zero duty for machinery, equipment and spares for cement manufacturing,
5% duty on imported gypsum and adequate supply of LPFO and gas to cement producers
at stable prices. These measures, has helped to reduce the cost of production and increase
productivity and by extension help stabilize the ex-factory and market prices of cement.

8. RECOMMENDATIONS
However, the following policy recommendations were made:
Government should continue with policies that will attract more investments into the construction
of new cement plants by the provision of low interest development loans, tax holidays, concessions
and reliefs needed to attract investment into cement production which has a longer gestation period
compared to other sectors.
Also, the proceed of the levy on cement imports should be invested in the building of a Cement
Technology Institute dedicated to research and capacity building for the cement Industry. Such an
institute can become a regional Centre of excellence serving our sub region and attracting support
from multilateral donor agencies.
Finally, the current rate of growth in the cement industry should be sustained by ensuring policy
consistency and implementation of necessary concessions that will further attract investment into
the industry by both old and new investors.

REFERENCES
Central Bank of Nigeria (CBN). Statistical Bulletin 2017