AN ALTERNATIVE SEARCH TO OIL SECTOR IN NIGERIA: IMPLICATION FOR NIGERIA'S ECONOMIC GROWTH

Abstract

Nigeria has depended too long on exhaustible crude oil as the major source of its revenue, giving little attention to other sectors capable of increasing its revenue base for viable development opportunities. This study investigated the potentials that exist in the non-oil sectors of the Nigeria economy. Specifically, the contribution of the agricultural, industrial, construction, trade and service sectors to Nigeria's economic growth were evaluated. Time series data was utilized spanning from 1986 to 2016. Descriptive statistics analysis and Johannsen co-integration test were employed for the analysis. Ordinary Least Square (OLS) and Error Correction Model (ECM) techniques were used to assess the Nigeria non - oil sector contribution to gross domestic product (GDP). The OLS and ECM findings revealed that agricultural and service sectors have positive significant impact on economic growth in Nigeria, while industrial, construction and trade have negative impact on economic growth in Nigeria. Therefore, the study recommends that the government should design a mechanism to improve the efficiency and effectiveness of agricultural sector and service sectors in Nigeria, since their contributions to GDP at long run were positive and statistically significant.