IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 4 NO. 6 2018

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Oil Revenue and Output Growth in Nigeria

Asagunla, Temitope Michael AND Agbede, Moses Oyeyemi

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Abstract

In spite of the huge rents from oil, the economy still couple with many problems including high and rising unemployment rate, declining manufacturing production, high and rising level of poverty, low per capital income and poor infrastructural development. In the light of the study, the objective of the paper was to examine the contribution of the oil revenue to Nigerian output growth for the period of 1981 to 2014.Using Beghebo and Atima model with little modification, the study employed the fully modified ordinary least squared method (FMOLS) to examine the relationship. Data covering the period 1981-2014 were sourced from the Central Bank of Nigeria Statistical Bulletin and Nigerian National Petroleum Corporation Statistical Bulletin. The study therefore discovered that oil revenue does not have short run impact on the economic activities of Nigeria. However, the long run impact of this policy gave a sterling story, as it was revealed that the persistence rise in oil revenue will ultimately lead to future economic growth of the country. It is however recommended that the government should effectively and efficiently utilize the oil fund into strategic developmental projects so as reduce the rate of poverty and facilitate output growth.

keywords:

Oil Revenue, Nigeria, Beghebo and Atima model and economic growth

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