Non-Oil Sector Performance and Economic Growth in Nigeria.
Publication Date: 20/11/2024
Author(s): Ozoh Joan N., Madueke Chinwe, Ezenwobi Ngozi, Onwuka Irene, Ezeife Agbachukwu.
Volume/Issue: Volume 7 , Issue 4 (2024)
Abstract:
Most of Nigeria's public income comes from oil exports, making it vulnerable to global market crashes and instability. The economy is experiencing a downturn due to the 2014–2015 decline in the value of crude oil. To increase the manufacturing of non-oil product exports and generate external cash, the state government is nowadays faced with the challenge of reorienting the economy to the non-oil sector. The study specifically considered the effect of non-oil sector performance, such as the output of the industrial, service, and agricultural sectors, on economic growth in Nigeria using yearly time series data from 1999 to 2022. The growth rate maximization theory was used in this investigation. The World Bank (2022) and the CBN Statistical Bulletin (2022) provided the data used in this analysis. Multiple regression analysis approaches were employed in the study. As the outcomes showed, the growth of the Nigerian economy is positively and significantly impacted by the output of the exchange rate, the manufacturing, service, and agricultural sectors; government spending has a negligible and negative effect on the growth of the economy. The research suggested that incentives should be created to support and expand Nigeria's manufacturing, service, and agricultural sectors to sustain the economy's growth.
Keywords:
Non-oil sector, economic growth, manufacturing output, service output, agriculture output.
