Nigeria’s economic growth trajectory has been marked by periods of expansion punctuated with stagnation, despite the country’s enormous natural resources and massive labor force. This paper explores the link between structural rigidities, productivity misallocation, and the political economy of growth persistence in Nigeria. Structural rigidities, including infrastructure shortages, labor market segmentation, regulatory limits, and limited access to finance, inhibit the efficient deployment of capital and labor across sectors. These limits contribute to ongoing productivity gaps, as resources remain concentrated in less productive firms or regions, while high-potential organizations encounter impediments to expansion. Productivity misallocation is further fostered by weak institutions, policy inconsistency, and rent-seeking conduct, which distort incentives and limit the effectiveness of changes. The informal sector, despite providing employment, is poor in productivity and mostly outside formal institutional structures, further underlining the misallocation of labor and capital. The paper draws on empirical evidence and theoretical views from structuralist, institutional, and political economy approaches to evaluate these dynamics. Findings reveal that growth persistence in Nigeria is mostly driven by the combination of structural inefficiencies, resource misallocation, and political incentives that favor short-term benefits over long-term development. The study indicates that sustainable, inclusive growth requires a coordinated approach that addresses structural changes, institutional strengthening, sectoral diversification, human capital development, and political feasibility of reforms. Policymakers must tackle both economic and political restrictions to optimize resource allocation, boost productivity, and promote a robust economy capable of supporting long-term development and structural transformation. 

Keywords: Structural Rigidities, Productivity, Misallocation, Political Economy, Growth Persistence.