Oil revenue and economic growth in nigeria pdf

Oil revenue, government expenditure and poverty rate in nigeria. 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. Nigeria economic outlook top 10 themes for 2019 disclaimer this document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. Crude oil revenue does not cause economic growth in nigeria. 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. Impact of crude oil price volatility on economic growth in. Impact of crude oil revenue cor on economic growth in nigeria. Evaluation of the contribution of oil revenue on economic. Pdf oil revenue and output growth in nigeria researchgate. 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 economy is now on a slow track for the first half 2015 with around 3. A series of world oil price increases from 1973 produced rapid economic growth in transportation, construction. How nigeria will earn little oil revenue to fund budget 2020.

This study determines the influence of oil revenue on economic growth of nigeria. Effects of oil revenue and institutional quality on economic. 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. Multiple regressionswere used as a tool for data analysis and the findings revealed that there is a positive and significant relationship between oil price and economic growth. This study aims at achieving the following objectives. The study period spans economic cycles for about 66 percent of the life of. This article examines the effects of oil revenue and institutional quality on economic growth in nigeria using annual data from 1984 to 2014. 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. The central bank of nigeria economic report is designed for the dissemination of financial and economic information on the nigerian economy on current basis.

Government must therefore diversify the economy via promotion and creating enabling environment for nonoil sector development in nigeria. 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. The sizeable oil windfall of course does present net wealth. Election uncertainty coupled with lackluster execution of policy reforms impacts fpi and fdi inflows. Impact of nonoil export on economic growth in nigeria. Nigeria seeks to narrow budget gap with more nonoil revenue. 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. A major recommendation is that, oil revenue should be restructured towards the strategic sectors of the economy to aid the growth in nigeria. Effects of oil export revenue on economic growth in nigeria. Effect of value added tax, customs and excise duties on. Oil revenue, government expenditure and poverty rate in. Impact of over dependence on oil revenue on economic. The study examined the impact of tax revenue on the nigerian economy. Since the late 1960s it has been based primarily on the petroleum industry.

Few studies have been carried out in this regard yet there is no conclusion as to the key factors that determine economic growth. 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. The study utilizes secondary data from various sources and covers a period of 1980 to 2014. In 2016, the global oil crisis resulted in an economic recession. 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. 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. Impact of over dependence on oil revenue on economic growth of nigeria. In this regard, the federal government has developed a framework in the nigeria economic recovery and. Nigeria gdp economic growth quickens to over fouryear high in q4 2019. 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. The ardl model employed shows the existence of longrun equilibrium among oil revenue, institutional quality, and economic growth. 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. Between 2000 and 2014, nigerias gross domestic product gdp grew at an average rate of 7% per year. Secondary data on gross domestic product gdp, used as a.

This study therefore, aims to illustrate clearly the impact of oil industry on economic growth performance in nigeria. Determine the extent which oil revenue impacted on the economic growth in nigeria. This empirical study examined oil revenue and economic growth in nigeria between 1981 to 2014. Pdf how important is oil in nigerias economic growth. 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. Empirically, nigeria s economy is found to be a resource dependent economy. The impact of oil revenue on the economic growth in nigeria. 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. Oil price fluctuations and economic growth in nigeria.

Pdf the dwindling price of crude oil has lowered the revenue generation to government thereby, impacting negatively on the nigeria economic growth. 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. Nigeria government revenues 20102019 data 20202022. Okafor 2012 explores the impact of income tax revenue on the economic growth of nigeria as. Empirically, nigerias economy is found to be a resource dependent economy. The study uses domestic consumption and export as proxies for oil revenue, and represents economic growth with real gross domestic. India is the largest purchaser of nigerias oil which fulfills 20% to 25% of indias domestic oil demand. Nigeria gdp annual growth rate 19822019 data 20202022. In the course of empirical investigation, various advanced econometric. The essence of this work has been to determine the effect of nonoil export on economic growth in nigeria, during the period of 19862010. Foreign direct investment, oil revenue, government policy. This study a nalyses the impact of non oil tax revenue on economic growth from 1993 to 2012 in nigeria. From the analyses performed, it seemed unclear whether nigeria suffered from the dutch disease variant of the resource curse.

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. Natural resources, institutions, and economic growth. The nigerian economy is one of the largest in africa. 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. Oil price volatility continues to influence nigerias growth performance.

Role of petroleum profit tax in the economic growth of nigeria. 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. Petroleum revenue and economic development of nigeria 1980. This study analyses the impact of nonoil tax revenue on economic growth from 1993 to 2012 in nigeria. 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. 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. Economic report fourth quarter 2018 the central bank of nigeria quarterly economic report is designed for the dissemination of financial and economic information. Following the oil price collapse in 20142016, combined with negative production shocks, the gross domestic product gdp growth rate dropped to 2. Looking forward, we estimate gdp annual growth rate in nigeria to stand at 0. An empirical investigation of oil revenue and economic growth in. Jun 05, 2012 from the analyses performed, it seemed unclear whether nigeria suffered from the dutch disease variant of the resource curse. Summary, conclusion, recommendations, bibliography and appendix.

A series of world oil price increases from 1973 produced rapid economic growth in transportation, construction, manufacturing, and government services. The impact of oil price and revenue variations on economic. In the longterm, the nigeria gdp annual growth rate is projected to trend around 2. Data were sourced from central bank statistical bulletin and extracted through desk. The book examines how differently nigeria and norway have managed their oil revenue to achieve economic growth and. In carrying out this study, secondary data were collected and empirical analysis was made. 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. Pdf petroleum revenue and 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.

Secondary data on gross domestic product gdp, used as a proxy for economic growth. 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. Contribution of agriculture to economic growth in nigeria1. The economy shifted into a higher gear in the final quarter of last year, with annual gdp growth accelerating from 2. Download the full project from chapter one to five with reference and abstract. Crude oil revenue and economic development in nigeria 1974.

In this regard, the federal government has developed a framework in the nigeria economic recovery and growth plan 201720. From the findings, the study concludes that variations in oil price and oil revenue are strong determinant factors of economic growth in nigeria. How opecs oil production cut would improve nigeria s economy. 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. The study evaluation of the contributions of oil revenue on economic development in nigeria tested the impact of growth rate in oil. An empirical investigation of oil revenue and economic. An empirical investigation of oil revenue and economic growth. 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. Pdf in spite of the huge rents from oil, the economy still couple with many. Examine the longrun relationship between oil revenue and economic growth in nigeria.