EFFECT OF OIL AND NON-OIL REVENUE ON ECONOMIC GROWTH OF NIGERIA
HenryEjikeme Udeh
Department of Accounting
Abia State University
E-mail: henejik05@gmail.com
ABSTRACT
The study was carried to ascertain the effect of oil and non-oil revenue of the government on economic growth of Nigeria. The scope of the research covers a period of thirty-five years running from 1981 to 2015. The researcher made use of multiple linear regression models. Secondary data on oil and non-oil revenue of the government for the period were collected from CBN statistical bulletin. Economic growth which is the dependent variable was represented by gross domestic product (GDP). The researcher applied the augmented Dickey-Fuller unit root test, co-integration test and error correction model in analysis of data. From the findings, oil and non-oil revenue exerted a positive and significant effect on gross domestic product. On this premise, the study recommended that more can be done to increase revenue generation through non-oil producing sectors of the economy by making available enabling environment and incentives that can facilitate economy diversification. Also, the researcher further suggested vesting the right for oil production solely in Nigeria owned companies like the NNPC other than sharing such with expatriate firms.
