ABSTARCT: – The contributions of the transport sector to the growth of economy of developing country like Nigeria cannot be overemphasized. This research work of development and contribution of transport sector to Nigeria gross domestic product (GDP) from 1970 – 2018, seems the way forward towards a sustainable financial stability shows the relationship between transport sector and economic growth. The research employed regression analysis using OLS method in verifying the relationship that exist between transport sector and economic growth. The research made use of Solow growth model which was extended to include transport sector output along with gross fixed capital formation and labor force as the inputs of the function and the gross domestic product as the output. It was recommended by the researcher that the federal government should invest much more resources into the transportation sector and develop other means of transportation like railways and water transport infrastructure which would be more affordable and would ease the road and air transport in the transportation of freight and persons.

KEYWORDS: – Expenditure, Gross Fixed Capital Formation, Infrastructure, Nigeria, Transport System