Oil Revenue And Economic Growth In Nigeria

Oil revenue serves as major source of income for government of Nigeria over the years which contributed to economic growth of Nigeria. This study seeks to determine the contribution of oil revenue to GDP of Nigeria's economy and also analyzed the independent and dependent variables. Therefore, variables under investigations are oil revenue, foreign direct investment, external debts, corruption index, educational quality, health quality, per capita income and unemployment rate. This study adopted ex post facto research design with the secondary data obtained from world development indicator of world bank and central bank of Nigeria, the data used for this study covers 29 years. The study used Autoregressive Distributed Lag Modelling (ARDL) to determine relationship among variables; the study established certain relationship among the variables. The findings revealed that long run effect of oil revenue is positive and statistically significant to education quality at 5% [â=0.78905; P–value=0.0006], and that the long-run effect of LOILREV is positive and statistically significant at 5% level on health quality [â=0.5997; P–value=0.0049], that LOILREV is positive and statistically significantly influence per capita income at 5% level [â=0.1236; P–value=0.0000], oil revenue and unemployment result reveals that the long-run effect of LOILREV is positive and statistically significant to unemployment rate at 5% level [â=3.48296; P–value=0.0152]. After the findings, the study recommends that government should be more proactive in course of debts request and should be judiciously utilized, therefore, lead to direct impacts on individual in the economy. The economy FDI should be maintained at a level that will encourage more funds mobilization for education sector from developed countries that will translate into growth for the entire economy. Attention should be directed towards increase budget on education and health as they are both determinant of economic growth in Nigeria.