IMPACT OF TOURISM ON THE ECONOMIC GROWTH IN NIGERIA

This study investigates the impact of tourism on economic growth in Nigeria between 2013 and 2023. Recognizing tourism as a catalyst for diversification in a predominantly oil-dependent economy, the research evaluates how key tourism indicators—revenue (TREV), employment (TEMP), foreign exchange earnings (FEXC), infrastructure (INFRA), and security (SEC)—influence Gross Domestic Product (GDP). The study employs a descriptive and analytical research design, integrating both quantitative and qualitative methods, with multiple regression analysis applied to assess variable relationships.
Findings reveal a strong positive correlation between tourism and economic growth, with an R-squared value of 0.92 indicating that 92% of GDP variation is explained by tourism-related factors. Among these, infrastructure and security are found to have the most substantial and statistically significant impacts, followed closely by foreign exchange earnings and tourism revenue. While employment contributes positively, its effect is relatively modest. The results affirm the Tourism-Led Growth Hypothesis (TLGH) within the Nigerian context.
The study concludes that strategic investment in infrastructure, enhanced security frameworks, and improved tourism promotion are critical to unlocking the sector’s full economic potential. It offers actionable recommendations for policymakers, investors, and community stakeholders to reposition tourism as a sustainable engine of national development.