Exploring Growth Effects of Industrial Unrest in Nigeria

Solomon O Osazuwa, Richardson Kojo Edeme


This study empirically explores growth effects of industrial unrest in Nigeria using both aggregated and disaggregated approach. The estimated results for the aggregate economy reveal that strikes and lock-outs negatively affect the economy. On the education sector, the results show that on the average, increasing the days of strike by an additional day reduces output from the education sector. The estimated coefficients for the health sector also shows that man day lost due to industrial unrest negatively affect, albeit marginally, the growth of the sector. For the mining sector, the results reveal that none of the measure of industrial unrest is statistically significant. The estimates for the construction sector reveal that every additional strike or lock-out experienced reduces the sector’s output. As further revealed by the results, increasing the number of workers on strike in the agricultural sector reduces the sector’s output. Overall, industrial unrest reduced output by 8.3 per cent which dampened economic growth by 0.6 percent. Since empirical evidence from this study reveal that strikes and lock-outs affects different sectors of the economy differently, government and relevant stakeholders should develop sector-specific approaches in addressing and managing the issues of industrial unrest in the economy.


Keywords: Economic growth, industrial unrest, workers on strike

JEL Classification: J51, O11

Full Text:



Abadie, A., & Gardeazabal, J. (2008). Terrorism and the World Economy. European Economic Review, 52(1), 1-27.

Abdulrahman, N., & Mato, K (2014). Labour-Government Relations in Nigeria: A Study of Regulation (1999-2012). European Scientific Journal, 10(32), 207-223.

Adewumi, F. (2013). The Global Economy, Trade Unions and The Protection of Workers' Rights in Nigeria. Working USA, 15(4), 529-547.

Alesina, A., Ozler, S., Nouriel, R., & Swagel, P. (1996). Political Instability and Economic Growth. Journal of Economic Growth, 1(2), 189-211.

Alesina, A., Perotti, R., & Spolaore, E. (1995). Together or Separately? Issues on the Costs and Benefits of Political and Fiscal Unions. European Economic Review, 39(3-4), 751-758.

Anyim, F. C., Ekwoaba, J. O., & Shonuga, A. O. (2013). Industrial Unionism and Its Bargaining Correlates in Nigeria Industrial Relations System. Journal of Management & Strategy, 4(3), 56-64.

Brym, R., L., Baucer, B., & McIvor, M. (2013). Is Industrial Unrest Reviving in Canada? Strike Duration in the Early Twenty-First Century. Canadian Review of Sociology, 50(2), 227-238.

Chukwuemeka, E (2012). Labour conflict in Enugu State Bureaucracy. African Development Review, 1(2), 100-113.

Christopher, C. O., Olusiji, O., & Badejo, A. E. (2012). Promoting ethical human resource management practices in work organizations in Nigeria: Roles of HR professionals. International Journal of Human Resource Studies, 2(2), 116-122.

Coon, K. H. (2000). The Ripple Effect of Union Strike: A Case Study of the Micro and Macroeconomic Effects of the General Motors Strike of 1998. The Park Place Economist, 17, 33-39.

Fajana, S., & Shadare, O. A. (2012). Workplace Relations, Social Dialogue and Political Milieu in Nigeria. International Journal of Business Administration, 3(1), 1-7.

Kabuoh, M., Semako, M. T., & Abiola, M. (2014). Impact of industrial conflict on economic development in Nigeria: A study of Nigerian students and trade union in Ogun state, International Journal in Advanced Research in Social Engineering & Development Strategies, 2(1), 69-81.

Madueme, S. I., & Aneke, G. (2011). Economic Analysis of the Impact of Labour Unionist Activities on Educational Stability in Nigerian Universities. Journal of Economics & Sustainable Development, 2(9), 41-49.

National Bureau of Statistics (NBS). (2015). Social Indicators, Abuja.

Nigerian Institute of Advanced Legal Studies (2010). Retrieved from http://www.nials.gov.ng.

Ndaba, V. (2013). Industrial action behind slower South Africa growth forecast, retrieved from http://www.bdlive.co.za/economy/2013/09/12/industrial-action -behind-slower-sa-growth-forecast.

Nubuor, S. A. (2017). The privatization Conundrum in Ghana: Lessons from Golden Tulip hotel in Accra. International Journal of Innovation & Economic Development, 3(2), 56-69.

Onwe, O. J. (2014). Economic Management of Ethno-Religious Crises in Nigeria: A Strategic Model. Singaporean Journal of Business, Economics & Management Studies, 2(12), 117-134.

Osakede, K. O & Ijimakinwa, S. A. (2014). The Effect of Public Sector Health Care Workers Strike: Nigeria Experience. Review of Public Administration & Management, 3(6),154-161.

Price water house Coopers. (2016). Economic Impact of Air Traffic Control Strikes in Europe. A Report prepared for A4E Airlines for Europe, available at www.pwc.co.uk.

Surujlal, J. (2014). A Critical Analysis of the Impact of Industrial Action in South Africa. Proceedings of 10th Asian Business Research Conference 6-7 October, Novotel Bangkok on Siam Square, Bangkok, Thailand

Whitaker, J. S., & Ubeku, A. K. (1984). Industrial relations in developing countries: The case of Nigeria. Foreign Affairs, 62(5), 1267.

Yiannis, Y. P., & Gupta, D. K. (1986). Income Distribution and Sociopolitical Instability as Determinants of Savings: A Cross-Sectional Model. Journal of Political Economy, 94(4), 873-883.

Yiannis, Y. P., & Gupta, D. K (1993). Sociopolitical and Economic Dimensions of Development: A Cross-Section Model. Economic Development & Cultural Change, 31(4), 727-756.


  • There are currently no refbacks.

ISSN (Print) 2086-1575       ISSN (Online) 2502-7115

View My Stats


Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.