THE NIGERIA BEYOND OIL: PROBLEM AND PROSPECTS

Abstract

This study examined the growth potentials of Nigerian economy beyond the current practice of over-dependence on the oil sector using time series data on gross domestic product, oil revenue, non-oil revenue and government expenditure over the period 1987 and 2016. While the variables oil revenue, non-oil revenue government expenditure served as explanatory variables, gross domestic product was used as the dependent variable. The result (carried out using ordinary least square method) indicated that all the variables except government expenditure are positively related to the dependent variable (GDP) when combined together while the coefficient of multiple determinations of 90% showed that the model is of high good fit. Besides, government expenditure is statically insignificant at 5% level. Thus, the study, therefore concluded by recommending   diversification of the Nigerian economy, that is paying more attention to other sectors of the economy as a necessary step towards reducing the susceptibility of the Nigerian economy to external shock given the elastic nature of oil prices in the international market. To achieve this, the agricultural and industrial sectors of the economy should be developed with the government providing  the necessary basic infrastructure as  well as enabling environment for the sectors to thrive without sacrificing any corrupt public officials however highly placed the person maybe .