Asian Journal of Probability and Statistics

Economic diversification has been the only solution to Nigeria’s economic challenges with the country in control of diversely untapped natural and human resources. This work centered on the concept of diversifying Nigeria’s economy from a statistical perspective, using secondary data on Nigeria’s GDP at 2010 Constant Basic Prices (1981-2023). Graphical representation showed that the annual contributions of about eleven of the forty-six Activity Sub-sectors and Sub-Sub-sectors (namely; Crop Production, Trade, Telecommunications, Crude Petroleum and Natural Gas, Real Estate, Financial Institutions, Food, Beverage and Tobacco, Construction, Professional, Scientific and Technical Services, Other Services, and Public Administration) to the Nigeria GDP (1981-2023) were visibly pronounced. Multiple Linear Regression and Correlation Analyses and Ranking were employed in the data analysis. Thirty-four (34) Activity Sub-sectors and Sub-Sub-sectors were included in the Multiple Linear Regression model established for the relationship between the Nigeria’s GDP (1981-2023) and the contributing Activity Sub-sectors and Sub-Sub-sectors. The model was of good fit to the Study Data. Furthermore, Crop Production, Coal Mining, Metal Ores, Oil Refining, Cement, Food, Beverages & Tobacco, Textile, Apparel & Footwear, Motor Vehicles & Assembly, Water Supply, Sewage, & Water Management, Construction, Trade, Accommodation & Food Services, Air Transport, Post & Courier Services, Telecommunications & Information Services, Financial Institutions, Public Administration, and Other Services were selected as the essential Activity Sub-sectors and Sub-Sub-sectors – wherein Nigeria’s economic diversification should be focused on. Finally, for the period under study (1981-2023), there was an inverse relationship between the average annual contributions by the seventeen selected essential Activity Sub-sectors and Sub-Sub-sectors to the Nigeria’s GDP and the estimated coefficients/parameters of the seventeen selected essential Activity Sub-sectors and Sub-Sub-sectors. On the basis of average annual contributions to the Nigeria’s GDP (1981-2023), Crop Production, Trade, Telecommunications & Information Services, Food, Beverage & Tobacco, Public Administration, Construction, Financial Institutions, Other Services, Textile, Apparel and Footwear, Cement, Accommodation & Food Services, Oil Refining, Motor Vehicles & Assembly, Water Supply, Sewage, Waste Management & Remediation, Air Transport, Post and Courier Services, and Coal Mining, respectively, ranked first (1^st) to seventeenth (17^th). And on the basis on the values of estimated coefficients/parameters, Post and Courier Services, Water Supply, Sewage, Waste Management & Remediation, Air Transport, Coal Mining, Other Services, Accommodation & Food Services, Construction, Public Administration, Oil Refining, Motor Vehicles & Assembly, Trade, Cement, Food, Beverage and Tobacco, Crop Production, Telecommunications & ICT, Textile, Apparel and Footwear, and Financial Institutions, respectively, ranked first (1^st) to the seventeenth (17^th). The choice of the way to go in this two-case scenario is based on priority of what the focus should be; whether values of estimated coefficients/parameters or average annual contributions to Nigeria’s GDP.