The contribution of exports to economic growth has been an issue that has generated heated debates over the years, among economists and policy makers all over the world. The importance of export to a nation’s economic growth and development cannot be over-emphasized. Export is a catalyst necessary for the overall development of an economy (Abou-stait, 2005). The primary objective of export policies in any economy is to increase the level of economic activities. It follows, therefore that export policies should be directed to the sector in which the impact of an increase in export demand will be both desirable and large. It is a source of foreign exchange earnings since trade transaction among nations are settled in foreign exchange. With exports, a nation can take advantage of the international division of labor and procure desired goods and services from abroad at considerable savings in terms of inputs of productive resources, thereby helping to increase the efficiency of the export industry. Besides, there is increased productivity gain from the concentration of export investment in the most efficient sectors of the economy especially in the sector in which the country has comparative advantage (lipsey, 1979: 632). In this respect, the empirical evidence adduced by Feeder (1980:59) on the relationship between exports and economic growth in a group of semi-industrial developing countries has shown that the margins are higher in export sector. Prior to the oil boom era, the Nigeria economy was predominantly agrarian and this provided the bulk of foreign exchange earnings, employment and government revenue; Nigeria was exporting agricultural produce like Cocoa, groundnut, cotton, palm oil, timber, hides and skins which are basic raw materials for a wide range of manufactured goods and in the 1950s and 1960s, 30%-40% annual output growth rates for agricultural and food crops were achieved. Nigeria depended so much on agricultural produce until the early 1970s when reliance shifted towards crude petroleum from 1974, Nigeria depended on crude oil for about 80 percent of her foreign exchange earnings.

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