International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume V, Issue VI, June 2020 | ISSN 2454-6194

 Impact of Non-Oil Revenue on Economic Growth of Nigeria (1994 – 2017): An Empirical Analysis

 Sebastian Ofumbia Uremadu, Ph.D1*, Nwaeze Chinweoke2, Charity Egondu Duru-Uremadu3
1Professor of Banking and Finance , Department of Banking and Finance, College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Umuahia, Abia State, Nigeria
2(Doctorate Student/Lecturer, Abia Polytechnic), Department of Banking and Finance, College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Umuahia, Abia State, Nigeria
3(Doctorate Student/Lecturer) , Department of Educational Management, College of Education, Michael Okpara University of Agriculture, Umudike, Umuahia, Abia State, Nigeria
*Corresponding author

Abstract: – This study investigated impact of non-oil revenue on economic growth of Nigeria for the period 1994 – 2017 studied. Data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin (2017). Real gross domestic product (RGDP) proxy for economic growth was adopted as the dependent variable while agricultural revenue (AR), manufacturing revenue (MNR), mining revenue (MR) and value-added tax revenue (VATR) were adopted as the independent variables. The Augmented Dickey-Fuller (ADF) unit root rest was used to test the stationerity of the variables. The results revealed a mixed order of integration, hence, the Auto-Regressive Distributed Lag (ARDL) bounds test was used to test the long-run relationship (co-integration) among the variables in the model and that there was a long-term relationship among the variables. The ARDL results showed that agricultural revenue and mining revenue had a negative and insignificant effect on economic growth of Nigeria in both the short run and long run. Manufacturing revenue had a positive and insignificant effect on economic growth in the short-run and a positive and significant effect on economic growth of Nigeria in the long run. However, VAT revenue had a positive and very significant effect on economic growth of Nigeria both at short run and long run. The study thus recommended amongst others that government should sustain and improve on its policies on the agricultural sector in order to boost agricultural production considering its positive posture on domestic growth while both the manufacturing sector and mining sector should be reinvigorated for increased production in a bid to make a transformed impact on economic growth in the future. Further, the study suggested that government should widen the VAT base by incorporating more items into the VAT net than increasing the VAT rate as it is presenting try to do in 2020 national budget appropriation.
Keywords: Economic Growth; Agricultural Revenue; Manufacturing Revenue; Mining Revenue; VAT.

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