Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 323

Article in Press

Does Nigeria Non-Renewable Resource Abundance leads to Macro Economic Performance? A Trend Analysis (1970-2014)

AJAYI Felix Odunayo, ADELOWOKAN A. Oluwaseyi, OGUNYOMI, Oluwatosin .O

  •  Received: 22 August 2017
  •  Accepted: 24 May 2019
Theoretically, natural resource abundance is expected to create national wealth; however, the inconclusiveness in the literature and among the African rich-resources motivated this study. Our paper investigated that does Nigeria non-renewable resource abundance leads to sustainable macroeconomic performance? To achieve the objectives of this study, our paper employ descriptive trends analysis, using table and charts to measure the relationship between the non-renewable resource abundance, proxied as oil and gas variables and the selected macroeconomic variables to draw an inference within the study period of 1970 – 2014 in Nigeria. In summary, our study conclude that an inverse relationship exist between non-renewable resource abundance and macroeconomic performance in Nigeria for the covered period 1970 – 2014. Therefore, our study conform the existing studies of Sachs & Warner, 2001; Gylfasson, 2005, VanPloeg and Venables, 2013 that African rich-resources countries, including Nigeria, a non-renewable resource abundance retards macroeconomic performance within period of study. Nonetheless, this study recommends that government should consistently endeavor to increase the proportion of education expenditure to total expenditure as well as same for capital expenditure to total expenditure, and finally, transform the economy from oil dependent economy to non-oil driven economy, that is diversification of the economy, which would change non-renewable resource abundant nation from curse to blessing and thus, guarantee sustainable macroeconomic performance in Nigeria.

Keywords: Non-Renewable Resource Abundance, Sustainable Macroeconomic and Trend Analysis