IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/v16y2025i1id20016.html

Oil Revenue and Non-Oil Revenue Impact on Economic Development

Author

Listed:
  • Olasupo, Sunday

    (Accounting and Finance Department, Bowen University, Nigeria,)

  • Owolabi, Babatunde

    (Accounting Department, Babcock University, Nigeria,)

  • Owolabi, Oluwasikemi

    (Accounting Department, Pan Atlantic University, Nigeria,)

  • Akinbode, James

    (Business Administration Department, Bowen University, Nigeria,)

  • Afolabi, Oladiran

    (Political Science and Diplomatic Studies Department, Bowen University, Nigeria,)

  • Otekunrin, Adegbola

    (Accounting and Finance Department, Bowen University, Nigeria,)

  • Osueke, Chikamso

    (Accounting and Finance Department, Bowen University, Nigeria,)

  • Omojola, Sunday

    (Accounting and Finance Department, Bowen University, Nigeria,)

  • Doorasamy, Mishelle

    (Accounting Department, School of Accounting, Economics and Finance, University of KwaZulu- Natal, Durban, South Africa.)

Abstract

The lingering controversy on the right mix?of national revenue generation in a quest for economic development is more pertinent for resource-rich and development-deficient countries, such as Nigeria. Even though Nigeria earns substantial revenue?from oil exports, it still performs poorly in basic human development indicators such as health, education, and income. This paper examines the effects of oil revenue (OILREV) and non-oil revenue (NONOILREV) on the economy in Nigeria, measured using the Human Development Index ?(HDI) as a measure of economic advancement. The study adopted an ex-post facto research design in which secondary data were obtained from World Bank databases and?the Central Bank of Nigeria (CBN) from 2014 to 2024. Independent variables used were Oil Revenue (OILREV) and?Non-Oil Revenue (NONOILREV), with HDI as the dependent variable. The study applied a panel least squares estimation technique using unbalanced panel data with 86 observations across sections. The empirical findings show that oil and non-oil revenues both have statistically significant positive effects on HDI. Specifically, an increment in oil revenue by one unit boosts HDI by 0.000604 units (p = 0.0000), whereas an increase in non-oil revenue by one unit boosts HDI by 0.000447 units (p = 0.0000). These findings show that oil revenue has a slightly higher effect on human development compared to non-oil revenue. However, the significance of both highlights the significance of diversified sources of revenue. The study concludes that Nigeria's economic growth can significantly be enhanced by the strategic management of both oil and non-oil sources of revenue.

Suggested Citation

  • Olasupo, Sunday & Owolabi, Babatunde & Owolabi, Oluwasikemi & Akinbode, James & Afolabi, Oladiran & Otekunrin, Adegbola & Osueke, Chikamso & Omojola, Sunday & Doorasamy, Mishelle, 2025. "Oil Revenue and Non-Oil Revenue Impact on Economic Development," International Journal of Energy Economics and Policy, Econjournals, vol. 16(1), pages 988-994, December.
    • Handle: RePEc:eco:journ2:v:16:y:2025:i:1:id:20016
    DOI: 10.32479/ijeep.20016
    as

    Download full text from publisher

    File URL: https://econjournals.com/index.php/ijeep/article/download/20016/9673
    Download Restriction: no
    File URL: https://libkey.io/10.32479/ijeep.20016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:eco:journ2:v:16:y:2025:i:1:id:20016. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijeep .

    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.