~ 33 ~ ESCAE JOURNAL OF MANAGEMENT AND SECURITY STUDIES (EJMSS) VOL 1. NO 2. 2021 Effect of Infrastructural Development on Nigeria’s Industrial Sector OJIODU, Ebenezer Department of Economics Lead City University, Ibadan, Nigeria. & ADERINTO Esther, PhD Faculty of Social and Management Sciences Department of Economics Lead City University, Ibadan, Nigeria +2348021473829 Abstract The importance of infrastructure to the industrial sector of any economy cannot be overlooked, thus making its development key to the survival of the sector. The purpose of this study is to analyze the effect of infrastructural development on the industrial sector of Nigeria. In that vein, time series data spanning from 1990 to 2019 was used for analysis. Industry value added (% of GDP) was used as an indicator of Nigeria’s industrial sector performance while index of electricity consumption, gross capital formation and Federal government spending on transport and communication, were used as indicators for infrastructural development. The result of the analysis showed that the index of electricity consumption. Gross capital formation and Federal government spending had a negative but significant impact in industry value added (on a 5% confidence level). Further analysis was conducted using Autoregressive Distributed Lag (ARDL) bound testing approach in estimating the relevant relationships. The result of the long run estimates indicates that the variables are mutually co-integrated, suggesting that a long run relationships exists .The lag of the error correction term which indicates the speed of adjustment of these variables to equilibrium was found to be statistically significant at 1% with the co-efficient(-0.3902).This implies that 39% of the distortion in the short-run is corrected on yearly basis The study recommends that measures to revamp and maintain the power sector of Nigeria must be taken seriously to ensure better supply of power. It also recommends that corruption should be curbed and projects for which funds are disbursed, be properly monitored as to ensure that efficient and long lasting infrastructure will be built and properly maintained to encourage greater industrial output. Keyword: Industrial sector, infrastructure, power supply, development, gross domestic product.