ABSTRACT
This research work is on the “Impact of Industrial Output on the Economy of Nigeria” between the period of thirty years (30) covered from 1980-2010. Impact of industrial output on the economy of Nigeria is a continuous discussion to every economy especially developing economy which will give rise to economic growth and development of a nation. Secondary data was used on PC Give 8.00 version package to regress the model with GDP as the dependent variable and industrial output savings net foreign capital flow and inflation as independent variables. The model explained that the influence of industrial output on economic growth is not statistically significant though the sign obtained from its à priori expectation is positively related to GDP but does not hold strong enough. Savings has a positive relationship and also a significant impact on the economy. Inflation has a negative relationship while net foreign capital flow is positively significant on the impact of economic growth. R-squared shows a 76% increase on the GDP. Based on the findings it is therefore recommended that some policies is to be made in ways to improve the establishment of industries especially the manufacturing industries to encourage industrialisation of the Nigerian economy so as to contribute to the strengthening of economic growth in the nation’s economy. Tax incentives through subsidies and government expenditure relate to increase in output and positive impact on economic growth. Increase in savings will make money available for the economy through high interest rate and income adjustments from the monetary policy.