Crude Oil Revenue, Governance and Literacy Rate in Nigeria, an Econometric Analysis from 1990 to 2021

Abstract

The study investigated the effect of crude oil revenue and governance on literacy rate in Nigeria from 1990 to 2021. The study adopted the Autoregressive Distributive Lag (ARDL) modelling techniques for the data analysis. Data for the analysis were sourced from secondary sources such as World Data Index (WDI) and CBN Statistical Bulletin (Various-Issues). The results of the analysis indicated as follows; the ARDL ECM regression results showed that in short run, the coefficient of current value of ORV has a positive (2.035124) relationship with LTR, the coefficient of GOE has a negative (-2.347579) relationship with LTR, the coefficient of ROQ has a positive (3.650024) relationship with LTR, the coefficient of the current value of VOA has a positive (0.554000) relationship with LTR, The coefficient of past lag 1 of VOA has a negative (-6.253304) relationship with LTR, the coefficient of COC has a negative (-0.283389) relationship with LTR, The coefficient of ROL has a positive (2.498299) relationship with LTR while the coefficient of EXH has a positive (0.021877) relationship with LTR. The Breusch-Godfrey Serial Correlation LM Test result showed that there is no serial correlation in the model. The Breusch-Pagan- Godfrey Heteroskedasticity Test result suggests that there is no evidence of heteroskedasticity in the model. The study concluded that Oil revenue increases literacy rate in Nigeria both in the short run and long run and recommended There should be accountability and transparency on the part of government and officials in the management of oil revenues for the benefit of the citizens and the economy as a whole.

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