ABSTRACT

This work investigates the impact of non-oil exports to the Nigerian economy. Although various factors have been adduced to Nigeria’s poor economic performance, the major problem has been the economy’s continued excessive reliance on the fortunes from the oil market without any meaningful economic diversification. The dilemma facing the non oil export sector is not only that it is being overshadowed by the oil export trade, but the declining non oil exports and loss of market share in the non-oil trade. The main objective of this study was to investigate the effect of non-oil exports on economic growth in Nigeria. This research work is fundamentally analytical and descriptive as it embraces the use of secondary data using annual data from 1986 to 2015 as published by Central Bank of Nigeria. Multiple regression models was used in analyzing the data obtained from Central Bank Statistical Bulletin. The result of the findings show that manufacturing revenue has a significant effect on economic growth in Nigeria which is positively signed indicating that an increase in manufacturing revenue will increase the economic growth in Nigeria while agricultural revenue has no significant effect on economic growth in Nigeria which means that an increase in agricultural revenue in has no impact on economic growth in Nigeria.  The study therefore recommends that the government should endeavor to support various export promotion programmes and institutions. This could be achieved by encouraging financial institutions, both formal and informal, to make loans available at reduced rates of interest for investors as to increase the level of investment in this country. 

Background of the Study

Prior to liberalization, the overall objectives of trade policy in Nigeria included a Marketing Board (1960-1977) through which all exportable agricultural products were purchased by the Government at prices far lower than world prices and incentives were given to farmers to increase their acreage and adopt some imported technologies.

The importance of export to a nation’s economic growth and development cannot be overemphasized. Export is a catalyst necessary for the overall development of an economy (Abou-stait, 2005).

The Nigeria economy has been and is currently being characterized by a reasonable degree of openness; hence its performance can be enhance through the development of the external sector. The Nigerian sector has always been dominated by primary commodities which have the well known basic characteristic of low price and income elasticity of demand, low growth of demand, terms of trade and instability of export earning (Iyoha and Oriakhi, 2002). This has made the Nigeria economy to swing from the “oil boom era”, as exemplified by the buoyant economy of the period with massive infrastructural development and the Udoji award followed by the period which arose from oil glut in the world oil market since 1981 only led to the neglect of the non-oil export productive base.

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