Oil Wealth and Economic Growth in Nigeria: An Empirical Analysis
K. Oduola, Oladotun
Department of Economics, Faculty of Social Science, Lagos State University, Nigeria.
O. Atoyebi, Kehinde *
Department of Economics, Faculty of Social Science, Lagos State University, Nigeria.
S. Gbemisola, Olajide
Department of Economics, Faculty of Social Science, Lagos State University, Nigeria.
I. Usman Damilola
Department of Economics, Faculty of Social Science, Lagos State University, Nigeria.
Nicodemus Gilbert Fiberesima
Department of Economics, Faculty of Social Science, Lagos State University, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study examines the impact of oil wealth on economic growth in Nigeria over the period 1990-2021. The Autoregressive Distributed Lag (ARDL) approach was used to estimate the long-run and short-run dynamics of the relationship. The study finds that there is a positive and significant relationship between oil revenue and economic growth in Nigeria in the long-run. However, in the short run, the effect of oil revenue on economic growth is not statistically significant. The study also finds that the agricultural sector has a positive and significant impact on economic growth, while the health sector has a mixed impact, depending on the lagged periods considered. The education sector, on the other hand, has a positive impact on economic growth, but this effect is only significant at longer lagged periods. Based on these findings, the study recommends that the Nigerian government should focus on diversifying the economy by investing in non-oil sectors such as agriculture, education, and health to achieve sustainable economic growth.
Keywords: Oil wealth, economic growth, ARDL