IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 11 NO. 5 2025
DOI: 10.56201/ijssmr.vol.11no5.2025.pg190.208

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Petroleum Income and Human Development Index in Nigeria (2005-2023)

Joseph O Elom, PhD, Ikechukwu Samuel Nweze, Uche Christopher Chukwu, PhD

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Abstract

The study examined the impact of petroleum income on human development index in Nigeria. The specific objectives were to find out the impact of crude oil export income on human development index in Nigeria, to determine the impact petroleum profit tax on human development index in Nigeria, to evaluate the impact of royalties income on human development index in Nigeria. The study adopted ex post facto research design. The study data were sourced from Central Bank Statistical Bulletin and World Development Indicator. The stated hypotheses were analyzed using descriptive statistics, unit root test and multiple regression. The findings of this study revealed that: crude oil export income has a positive but statistically non-significant effect on human development in Nigeria (? = 0.0299, p = 0.1515); petroleum profit tax exerts a negative and significant effect on human development (? = - 0.0738, p = 0.0399); royalties income has a negative and significant effect on human development in Nigeria (? = -0.0548, p = 0.0000). In conclusion, petroleum income, while economically substantial, does not guarantee developmental outcomes in contexts where governance and resource allocation frameworks may be weak or misaligned with developmental goals. It was recommended that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should establish a mandatory development fund sourced from royalty payments. This fund should be transparently managed and strictly allocated to human development priorities in oil-producing communities, including healthcare delivery, educational support, and livelihood enhancement programs.

keywords:

Petroleum Income, Human Development Index, Crude Oil Export Income, Human

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