The fact that economic growth is necessary for sustained development, coupled with data limitation, informs our focus on investigating the contributions of agriculture to economic growth, as measured by. This empirical study examined oil revenue and economic growth in nigeria between 1981 to 2014. This paper attempts to highlight the areas of impact of oil on economic policy formulation in nigeria, as well as the implications and indications of the possible way forward. The essence of this work has been to determine the effect of nonoil export on economic growth in nigeria, during the period of 19862010. Pdf the dwindling price of crude oil has lowered the revenue generation to government thereby, impacting negatively on the nigeria economic growth. The study evaluation of the contributions of oil revenue on economic development in nigeria tested the impact of growth rate in oil. Oil revenue, government expenditure and poverty rate in. Natural resources, institutions, and economic growth. Effects of oil export revenue on economic growth in nigeria. The book examines how differently nigeria and norway have managed their oil revenue to achieve economic growth and. This study a nalyses the impact of non oil tax revenue on economic growth from 1993 to 2012 in nigeria. Effects of oil revenue and institutional quality on economic. Looking forward, we estimate gdp annual growth rate in nigeria to stand at 0. Impact of oil revenue on the economic growth in nigeria.
The impact of oil price and revenue variations on economic. The study utilizes secondary data from various sources and covers a period of 1980 to 2014. Impact of over dependence on oil revenue on economic. From the findings, the study concludes that variations in oil price and oil revenue are strong determinant factors of economic growth in nigeria. Few studies have been carried out in this regard yet there is no conclusion as to the key factors that determine economic growth. In this regard, the federal government has developed a framework in the nigeria economic recovery and. Download the full project from chapter one to five with reference and abstract. Effect of value added tax, customs and excise duties on. Pdf oil revenue and output growth in nigeria researchgate. The economy is now on a slow track for the first half 2015 with around 3. This is important when it is realized that any action taken on vat, as it relates to rgdp will take a year to become effective while taking two years to slow down the economy. In the last two years delays of as much as six months in signing the budget into law held back spending on projects and weighed on economic growth. To achieve this research objective, relevant secondary data were used from the 2012 statistical bulletin of the central bank of nigeria cbn.
Empirically, nigeria s economy is found to be a resource dependent economy. The study period spans economic cycles for about 66 percent of the life of. The result provides new insights into the oil curse phenomenon in nigeria. In the course of empirical investigation, various advanced econometric. A series of world oil price increases from 1973 produced rapid economic growth in transportation, construction. Using growth regressions with panel data, this study identifies the determinants of economic growth, highlighting in particular the role of natural resources and institutional quality.
This study analyses the impact of non oil tax revenue on economic growth from 1993 to 2012 in nigeria. Impact of crude oil price volatility on economic growth in. Oil production could thus attract more foreign direct investment and contribute to the economic development of ghana only on condition that appropriate oil revenue management policies are implemented. The central bank of nigeria economic report is designed for the dissemination of financial and economic information on the nigerian economy on current basis. Empirically, nigerias economy is found to be a resource dependent economy. The overarching aim of this exercise is to learn about the drivers of growth in nigeria, and to predict growth rates of gross domestic product per capita for the.
Stronger oil prices in early 2017 mean signs of economic recovery in nigeria, but this will remain fragile until it puts new policies and reforms into effect to create a more favorable environment for sustainable growth. The study concludes by making recommendations as to how the country could be cured from the other variants of the resource curse so that it can start achieving some measures of sorely needed economic development. Following the oil price collapse in 20142016, combined with negative production shocks, the gross domestic product gdp growth rate dropped to 2. Nigeria gdp economic growth quickens to over fouryear high in q4 2019. Oil price volatility continues to influence nigerias growth performance. Empirical analysis from the study suggested that oil export revenue had a positively significant effect on growth both in the shortterm oil revenue total expenditure real gdp growth % capital expenditure % of gdp. An empirical investigation of oil revenue and economic growth in. The impact of over dependence on oil revenue on nigeria economic growth cannot be overemphasized this research work will explore all the negative implication of monoexport on nigeria economy. Pdf evidence has shown that petroleum revenue has increased but economic development in nigeria seems not commensurate with the rise.
The study uses domestic consumption and export as proxies for oil revenue, and represents economic growth with real gross domestic. Economic report fourth quarter 2018 the central bank of nigeria quarterly economic report is designed for the dissemination of financial and economic information. Economic growth is expected to recover slightly, to above 1 percent in 2017, driven mainly by the restoration of oil production to normal levels 2. Oil price fluctuations and economic growth in nigeria.
This study examined the relationship between oil price and economic growth in nigeria using annual time series data for the period 19742014 sourced from central bank of nigeria cbn statistical bulletin, opec and world bank for the year 2014. This study analyses the impact of nonoil tax revenue on economic growth from 1993 to 2012 in nigeria. Determine the extent which oil revenue impacted on the economic growth in nigeria. The dismal performance of the nigerian economy in the face of huge rent from oil has rekindled interest on oil revenue and economic growth process in nigerian. The fact that economic growth is necessary for sustained development, coupled with data limitation, informs our focus on investigating the contributions of agriculture to economic growth, as measured by gross domestic product gdp, in nigeria. Jun 05, 2012 from the analyses performed, it seemed unclear whether nigeria suffered from the dutch disease variant of the resource curse. By the time nigeria became politically independent in october 1960, agriculture was the dominant sector of the economy, contributing about 70% of the gross domestic product gdp, employing about the same percentage of the working population, and accounting for about 90% of foreign earnings and federal government revenue. Pdf in spite of the huge rents from oil, the economy still couple with many.
Nigeria seeks to narrow budget gap with more nonoil revenue. The economy shifted into a higher gear in the final quarter of last year, with annual gdp growth accelerating from 2. Nigeria gdp annual growth rate 19822019 data 20202022. In this regard, the federal government has developed a framework in the nigeria economic recovery and growth plan 201720.
Data were sourced from central bank statistical bulletin and extracted through desk. India is the largest purchaser of nigerias oil which fulfills 20% to 25% of indias domestic oil demand. Introduction overty is a multidimensional problem that goes beyond economic to include, among other things, banks 2000 world development report defines poverty as an unacceptable deprivation in human wellbeing that. A series of world oil price increases from 1973 produced rapid economic growth in transportation, construction, manufacturing, and government services. Impact of nonoil export on economic growth in nigeria. Foreign direct investment, oil revenue, government policy. Pdf petroleum revenue and economic growth in nigeria. Okafor 2012 explores the impact of income tax revenue on the economic growth of nigeria as. Problems of economic development in nigeria and solutions. The nigerian economy is one of the largest in africa. The government of nigeria has used the revenue derived from oil through tax and royalties to carry out development projects in the country iyohu 2000. Secondary data on gross domestic product gdp, used as a.
Since the late 1960s it has been based primarily on the petroleum industry. The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigerias economic growth between 1980 and 20. A major recommendation is that, oil revenue should be restructured towards the strategic sectors of the economy to aid the growth in nigeria. Crude oil revenue and economic development in nigeria 1974. Petroleum revenue and economic development of nigeria 1980. The ardl model employed shows the existence of longrun equilibrium among oil revenue, institutional quality, and economic growth. An empirical investigation of oil revenue and economic growth. In 2016, the global oil crisis resulted in an economic recession. Role of petroleum profit tax in the economic growth of nigeria. The sizeable oil windfall of course does present net wealth. This study therefore, aims to illustrate clearly the impact of oil industry on economic growth performance in nigeria. The impact of oil revenue on the economic growth in nigeria. In carrying out this study, secondary data were collected and empirical analysis was made.
Chapter five of this impact of oil revenue on the economic growth in nigeria material is available, order and download full work chapter five of impact of oil revenue on the economic growth in nigeria contains. From the analyses performed, it seemed unclear whether nigeria suffered from the dutch disease variant of the resource curse. How opecs oil production cut would improve nigeria s economy. Therefore, using annual data from 1970 to 2015, oil revenue export is found to positively and significantly contribute to economic growth throughout the period of study. This study aims at achieving the following objectives. Contribution of agriculture to economic growth in nigeria1. Economic report fourth quarter 2018 the central bank of nigeria quarterly economic report is designed for the dissemination of financial and economic information on the nigerian economy on current basis. Election uncertainty coupled with lackluster execution of policy reforms impacts fpi and fdi inflows. This study determines the influence of oil revenue on economic growth of nigeria. According to the economic report for the fourth quarter of 2018 q418 released by the central bank of nigeria cbn yesterday, total oil revenue rose by 129 percent to n9. Secondary data on gross domestic product gdp, used as a proxy for economic growth.
This article examines the effects of oil revenue and institutional quality on economic growth in nigeria using annual data from 1984 to 2014. Between 2000 and 2014, nigerias gross domestic product gdp grew at an average rate of 7% per year. Evaluation of the contribution of oil revenue on economic. An empirical investigation of oil revenue and economic. The two major planks of the paper will be the policy trend prior to the advent of oil, the pattern since its evolution and the policy. Summary, conclusion, recommendations, bibliography and appendix.
Impact of crude oil revenue cor on economic growth in nigeria. The study examined the impact of tax revenue on the nigerian economy. Examine the longrun relationship between oil revenue and economic growth in nigeria. Oil revenue, government expenditure and poverty rate in nigeria. Nigeria government revenues 20102019 data 20202022. In the longterm, the nigeria gdp annual growth rate is projected to trend around 2.