COMPREHENSIVE ANALYSIS OF THE EFFECT OF OIL AND NON-OIL REVENUES ON ECONOMIC GROWTH IN NIGERIAAbstract:
Revenue generation as the funding source for Nigeria's economic growth activities was challenging due to the government's mismanagement, tax avoidance, and corrupt practices due to the COVID-19 pandemic. The global crude oil prices declined. The challenges make Nigeria's federal government over-dependent on oil-generated revenues to experience several setbacks in achieving its economic growth goals. However, for the last decade, the Government has also diversified the economy and focus on the non-oil area. Thus, this study examined the effects of generating oil and non-oil revenues on Nigeria's economic growth from 1989 through 2018 using secondary data extracted in the Central Bank of Nigeria's statistical bulletin. The study employed the model for analytical co-integration and error correction. Similar analytical processes were applied to the multivariate data on components of oil and non-oil revenue, exchange rates, and real gross domestic products. Results generated indicated that the oil revenue harms real gross domestic products in Nigeria, but this is the same with effects reported from non-oil revenue. Nonetheless, Nigeria's exchange rate gives a positive sign and statistical significance for real gross domestic products. Consequently, the study opined that the continuing decline in global crude oil prices, resistance from insurgents in Nigeria's oil-producing area, the Nigerian Government's profligate expenditure, the global COVID-19 health pandemic, among other factors, are harming the economic growth of Nigeria.