IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-3sp7884-7902.html

Illicit Trade of Natural Resources and Economic Growth in Nigeria

Author

Listed:
  • Ishaku Rimamanung Nyiputen

    (Department of Economics, faculty of social science, Federal University Wukari Taraba State, Nigeria)

  • Adeyemo Olulayo Elizabeth

    (Department of Economics, faculty of social science, Federal University Wukari Taraba State, Nigeria)

Abstract

Natural resources, both renewable and non-renewable, and ecosystem services are a part of the real wealth of nations. They are the natural capital out of which other forms of capital are made. They contribute towards fiscal revenue, income, and poverty reduction. Sectors related to natural resources use provide jobs and are often the basis of livelihoods in poorer communities. Owing to this fundamental importance of natural resources, they must be managed sustainably. Government plays the essential role in putting into place policies that ensure that resources contribute to the long-term economic development of nations, and not only to short-term revenue generation, high-quality institutions in the present, and planning for the future. This study investigated the impact of illicit trade of natural resources and economic growth in Nigeria. The data involved for the study were growth rate of gross domestic product (GDPR), shadow economy as a share of GDP (SDGDP), formal economy as a share of GDP (FMEGDP), corruption perception (CORR), and government effectiveness (GOVEF). This research’s analysis proceeded from the descriptive statistics which involved a summary statistic of the quantitative behaviour of the variables included in the model. Furthermore, the Augmented Dickey Fuller (ADF) unit root test was conducted to verify the stationarity of the study’s data. on Nigeria economic growth. The research was carried out under the assumption that natural resources deemed to impact level of economic growth of Nigeria The study made use of Secondary data from 1991 to 2021. Given the empirical findings in this study, it was concluded that the size of the adverse effect generated from the illicit trade in natural resources, corresponds to the substantial enhancing effect of the formal sector on the growth of the Nigerian economy. Specifically, revenues generated in the illicit trade of resources significantly and adversely affect the growth of the Nigerian economy.

Suggested Citation

  • Ishaku Rimamanung Nyiputen & Adeyemo Olulayo Elizabeth, 2025. "Illicit Trade of Natural Resources and Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(3s), pages 7884-7902, October.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-3s:p:7884-7902
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-3s/7884-7902.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/illicit-trade-of-natural-resources-and-economic-growth-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. B. Mathias & Sean Lux & T. Russell Crook & Chad Autry & Russell Zaretzki, 2015. "Competing Against the Unknown: The Impact of Enabling and Constraining Institutions on the Informal Economy," Journal of Business Ethics, Springer, vol. 127(2), pages 251-264, March.
    2. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 351-397.
    3. Putniņš, Tālis J. & Sauka, Arnis, 2015. "Measuring the shadow economy using company managers," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 471-490.
    4. Dreze, Jean & Sen, Amartya, 2002. "India: Development and Participation," OUP Catalogue, Oxford University Press, edition 2, number 9780199257492.
    5. Friedrich Schneider & Dominik Enste, 1999. "Shadow Economies Around the World - Size, Causes, and Consequences," CESifo Working Paper Series 196, CESifo.
    6. Schneider, Friedrich & Buehn, Andreas, 2012. "Shadow Economies in Highly Developed OECD Countries: What Are the Driving Forces?," IZA Discussion Papers 6891, IZA Network @ LISER.
    7. Leandro Medina & Mr. Friedrich Schneider, 2018. "Shadow Economies Around the World: What Did We Learn Over the Last 20 Years?," IMF Working Papers 2018/017, International Monetary Fund.
    8. Friedrich Schneider & Konrad Raczkowski & Bogdan Mróz, 2015. "Shadow economy and tax evasion in the EU," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 18(1), pages 34-51, January.
    9. Mughal, Khurrum & Schneider, Friedrich, 2018. "Shadow Economy in Pakistan: Its Size and Interaction with Official Economy," MPRA Paper 87087, University Library of Munich, Germany.
    10. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
    11. Cordelia Onyinyechi Omodero, 2019. "The Financial and Economic Implications of Underground Economy: The Nigerian Perspective," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 8, July.
    12. Feige, Edgar L. & Urban, Ivica, 2008. "Measuring underground (unobserved, non-observed, unrecorded) economies in transition countries: Can we trust GDP?," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 287-306, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Omodero Cordelia Onyinyechi, 2019. "The Financial and Economic Implications of Underground Economy: The Nigerian Perspective," Academic Journal of Interdisciplinary Studies, Sciendo, vol. 8(2), pages 155-167, July.
    2. Sergey Arzhenovskiy, 2023. "Estimate of shadow economy dynamics in Russia and regions: The inflationary aspect," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 69, pages 121-140.
    3. Cordelia Onyinyechi Omodero, 2019. "The Financial and Economic Implications of Underground Economy: The Nigerian Perspective," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 8, July.
    4. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    5. Nguyen, Canh Phuc & Nguyen, Binh Quang, 2023. "Environmental foe or friend: The influence of the shadow economy on forest land," Land Use Policy, Elsevier, vol. 124(C).
    6. Dagmara Nikulin & Ewa Lechman, 2021. "Shadow Economy in Poland: Results of the Survey," SpringerBriefs in Economics, in: Shadow Economy in Poland, chapter 0, pages 49-65, Springer.
    7. Schneider Friedrich & Buehn Andreas, 2017. "Shadow Economy: Estimation Methods, Problems, Results and Open questions," Open Economics, De Gruyter, vol. 1(1), pages 1-29, March.
    8. Ceyhun Elgin & M. ayhan Köse & Franziska Ohnsorge & Shu Yu, 2021. "Understanding Informality Abstract:," Working Papers 2021/03, Bogazici University, Department of Economics.
    9. Nezhyvenko, O., 2019. "Indirect or Macroeconomic Methods in Measuring the Informal Economy," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(4), pages 201-215, December.
    10. Monica Violeta Achim & Sorin Nicolae Borlea & Lucian Vasile Găban & Alin Adrian Mihăilă, 2019. "The Shadow Economy and Culture: Evidence in European Countries," Eastern European Economics, Taylor & Francis Journals, vol. 57(5), pages 352-374, September.
    11. Arezzo, Maria Felice & Horodnic, Ioana A. & Williams, Colin C. & Guagnano, Giuseppina, 2024. "Measuring participation in undeclared work in Europe using survey data: A method for resolving social desirability bias," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    12. Achim, Monica Violeta & Postea, Mihaela Maria & Noja, Gratiela Georgiana, 2024. "New estimate of shadow economy based on the total energy consumption. Evidence from the European Union countries," Energy Economics, Elsevier, vol. 130(C).
    13. Folorunsho Monsuru Ajide & James Temitope Dada & Johnson Kolawole Olowookere, 2022. "Shadow economy and foreign direct investment in Nigerian manufacturing industry," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 23(2), pages 156-180.
    14. Kose, M. Ayhan & Elgin, Ceyhun & Ohnsorge, Franziska & Yu, Shu, 2021. "Understanding Informality," CEPR Discussion Papers 16497, Centre for Economic Policy Research.
    15. Loredana - Andreea CHITOIU, 2024. "Analysing the fiscal impact on general well-being in the CEE states," Romanian Journal of Economics, Institute of National Economy, vol. 59(2(68)), pages 240-257, December.
    16. Toan Pham-Khanh Tran & Phuc Van Nguyen & Quyen Le-Hoang-Thuy-To Nguyen & Ngoc Phu Tran & Duc Hong Vo, 2022. "Does national intellectual capital matter for shadow economy in the Southeast Asian countries?," PLOS ONE, Public Library of Science, vol. 17(5), pages 1-19, May.
    17. Feige, Edgar L., 2015. "Reflections on the meaning and measurement of Unobserved Economies: What do we really know about the “Shadow Economy”?," MPRA Paper 68466, University Library of Munich, Germany.
    18. Colombo, Emilio & Onnis, Luisanna & Tirelli, Patrizio, 2016. "Shadow economies at times of banking crises: Empirics and theory," Journal of Banking & Finance, Elsevier, vol. 62(C), pages 180-190.
    19. Omodero Cordelia Onyinyechi, 2019. "The Consequences of Shadow Economy and Corruption on Tax Revenue Performance in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 29(3), pages 64-79, September.
    20. Ioana Alexandra Horodnic & Colin C. Williams & Oana Țugulea & Iuliana Claudia Stoian Bobâlcă, 2022. "Exploring the Demand-Side of the Informal Economy during the COVID-19 Restrictions: Lessons from Iași, Romania," Sustainability, MDPI, vol. 14(12), pages 1-16, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-3s:p:7884-7902. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.