How Much Nigerian Economic Growth ((1990-2018) Had Been Affected by Non-Oil Sector?

Abstract

This study aims to find the impression of non-oil sector on Nigerian economy. It also finds other steps those need to be taken to improve and develop the non-oil sector up to its full potentials. The primary objective is to find the connection between the effects of manufacturing sector output on Nigerian economy; determine the relationship between agricultural output on Nigerian Economy and examine the relationship between total deposit money banks credit on Nigerian economy. The study covered a period of twenty-eight (28) years, from 1990-2018. Ex-post facto research design was deemed most suitable for the study. Data for this study were sourced from secondary means especially CBN statistical bulletin. Manufacturing sector output, agricultural sector output, power sector output and total bank credit were used to proxy non-oil sector, while GDP was used to proxy economic growth. Hypotheses were tested using regression analysis (OLS), which was adopted due to its simplicity and unbiasness. The regression was tested using E-view software version 8.0. The result of the study showed manufacturing sector and agricultural sector have significantly contributed to economic growth in Nigeria, while power sector and bank credit have not contributed significantly to economic growth in the country. The study therefore recommends that budget on power sector should be increased, and its usage properly monitored to avoid embezzlement of the fund, while incentive should be given to the banks as a way of encouraging them to extend more credit to the activity sectors of the economy, as a way to diversify the economy.