This surge was due to increases recorded in the export of goods within the manufacturing and industrial sectors. Most of nigerias crude oil is exported to foreign consumers of which the united states of america is preeminent prior to the discovery of shale oil in the u. A comparative analysis on the role of crude oil and nonoil. The study examines the contribution of foreign direct investment fdi to the performance of nonoil exports in nigeria within the framework of the exportled growth elg hypothesis. The study employed credit to private sector, total bank deposit, prime lending rate, market capitalization, money market instruments as proxy to measure financial sector development, while gdp was used to capture economic growth, using annual data from 1985 to 2015. Time series analysis of nonoil export demand and economic. The study used per capita income as proxy for economic development and expressed it as a function of nonoil export volume, trade. The study empirically examined the relationship among oil price, exchange rate and nonoil export in nigeria using a structural vector autoregressive svar model for the periods 1986q1 to 2011q4. Global integration, nonoil export and economic growth in nigeria. Cbn introduces uniform exchange rate for naira by ismail abdulazeez mar 22, 2020 4.
Get free research paper on oil and nonoil export on the economic growth of nigeria 1983 2007project topics and materials in nigeria. If playback doesnt begin shortly, try restarting your device. Our office, which is located at the american consulate general in lagos, nigerias key commercial city, is part of a global network of offices in over 100 u. Nigeria unserious about nonoil exports vanguard news. Apr 07, 2017 oil export and nonoil export have remained sources of revenue for nigeria over the years, however the over dependence on oil sector and neglect of the nonoil sector has raised issues on which export sector impacts more on the nigeria economy. This is also consistent with the findings in the shortrun. The study investigates the influence of foreign direct investment fdi and infrastructural development on non oil exports in nigeria 19812014. This study focuses on global integration, nonoil export and economic growth in nigeria. However, these challenges represent enormous opportunities for companies from the united states u. The study recommended that monetary policy should be purpose driven towards the achievement of export diversification.
Are you aware that nigeria is a country is in need of many goods and products. This enhances the stability and robustness of results. Nonoil export, foreign direct investment and infrastructural. This paper examines exchange rate volatility with arch model and its various extensions garch, tgarch, and egarch using quarterly exchange rate series from 1986q1 to 2014q4. The stakeholders, who argued that nigeria has the best services companies in the subsaharam africa, however lamented that credit to nonoil export sector has. Although no country is immune to such global crises, the over reliance on oil export revenue by nigeria. The mono economy nature of nigeria and the need to diversify the economy form part of the motivation for the study. The nigerian export promotion council nepc headed by mr. Diversification of nonoil export product as a precondition. The result provides new insights into the oil curse phenomenon in nigeria. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. The economy is experiencing a fall in exchange earning, a fall in gdp. Exchange rate volatility and nonoil exports in nigeria. Fdi connotes investment made in the acquisition of longterm management interest in an enterprise and operating in a country other than that of the investors.
Effects of nonoil export on the economic development of. Discussions about step by step of starting export business in nigeria. Odularu 2008 also reported that in the year 2000, crude oil and gas accounted for more than 98% of nigerias export and about 83% of federal government revenue. The adoption of a flexible exchange rate system since 1986 in nigeria has made the country witnessed varying rate of the naira visavis the u.
Get free research paper on impact of exchange rate policy on nonoil exports in the nigerian economy 19992014 project topics and materials in nigeria. Nedp was set up to mobilize 100,000 small scale exporters and service providers to assist the government in its quest to diversify the nigerian economy from overdependence on oil. The impact of non oil export on economic growth of nigeria. This report examines the export potential of nigerias principal nonoil sectors, agriculture and manufacturing. The study investigates effect of nonoil export on the economic development of nigeria. Nigeria imports different types of goods from different countries and in many cases, imports things that are banned. The export of crude oil now constitutes about 96% of total exports.
Nigerias nonoil export sector is still in its infancy and came into mainstream in the last 10 years due to the policies that were put in place that encouraged the sector to invest in. Effects of oil export revenue on economic growth in nigeria. Data were analysed using descriptive statistics, correlation analysis and regression analysis. Before the beginning of crude oil exports in 1978, agriculture accounted for about 30% of the gross domestic product gdp and 80% of total exports. The study uses three measures of export namely, total export, oil export and non oil export. According to statistics by cobalt international, other nonoil products that were exported from the country to other parts of the world in 20 comprised cocoa and cocoa preparations, sheep and goat skins, sesame seeds, aluminium articles, rubber, tobacco. Nigeria has recorded a significant rise in its nonoil export, with agricultural goods increasing the countrys foreign exchange earnings. The nigerian economy before the discovery of crude oil. Edo, delta, ondo, ogun, abia, anambra, akwa ibom, cross river, rivers, ebonyi and bayelsa. Impact nonoil export on economic growth of nigeria mensch mind. This study examines the contribution of non oil export to the growth of the nigerian economy for the period 19852015. Impact of nonoil export on economic growth in nigeria. The study investigates the influence of foreign direct investment fdi and infrastructural development on nonoil exports in nigeria 19812014. For most oilproducing economies, this depends significantly on exploring the full potential of the nonoil sector.
The findings revealed that the impact of nonoil export on domestic investment was positive but insignificant. Pdf oil price, exchange rate and nonoil export in nigeria. Apr 07, 2020 full list of non contraband goods in nigeria 2020. Oec nigeria nga exports, imports, and trade partners. The findings also reveal a unicausal link from export to growth in nigeria, thereby, supporting the export led growth hypothesis. The impact of nonoil export on domestic investment in nigeria. In carrying out this study, secondary data were collected and empirical analysis was made. Miscellaneous base metal goods represents the fastest grower among the top 10 export categories, up by 239,302% from 2018 to 2019. This study examined the causality between nonoil export, financial sector development and economic growth in nigeria. It augments domestic investment di, which is crucial to the attainment of economic growth.
Non oil export, economic growth, nigeria, disaggregated analysis. Therefore, using annual data from 1970 to 2015, oil revenue export is found to positively and significantly contribute to economic growth throughout the period of study. Palm oil is a major food and non food ingredient consumed by virtually everyone in nigeria through the use of palm oil related products. Pdf the impact of nonoil export on the nigerian economy. Summary, recommendations, conclusion, references, appendix 1, appendix ii and appendix iii. Nigerias top 10 exports are highly concentrated accounting for 99% of the overall value of the countrys global shipments. For analysis, it uses one measures of financial openness. The government has now realized the importance of the two sources to the treasure, and as such, should commit more to diversifying the nonoil export base. The unit root test showed that both economic growth and export are integrated of order one, i. The nigerian export import bank nexim was established by act 38 of 1991 as an export credit agency eca with a share capital of n50, 000,000,000 fifty billion naira held equally by the federal ministry of finance incorporated and the central bank of nigeria. A comparative analysis on the role of crude oil and non. Central bank of nigeria, changing structure of the nigerian economy 2000 and.
Equatorial journal of marketing and insurance policy, vol. A study of agricultural and mineral resources exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. Download the full research work in doc editable format. The nonoil export stimulation facility esf was established by the central bank of nigeria cbn to diversify the economy away from oil and to expedite the growth and development of the nonoil export sector. The nigeria export promotion council nepc believed that the nonoil export sector of. Nigeria nonoil export prospects ingles banco mundial. Global integration, nonoil export and economic growth in. The paper investigates the impact of exchange rate volatility on nonoil exports in nigeria, 1986120084. He added that the countrys exports were no longer limited to the traditional markets of europe, especially the united kingdom. Nigeria is the 49th largest export economy in the world and the 124th most complex economy according to the economic complexity index eci.
The policy implication of this finding is that failure on the part of policy makers to increase nonoil exports will directly hurt the economy of nigeria. Empirically, nigeria s economy is found to be a resource dependent economy. By accessing this site, you accept that we process certain information you send e. This study investigates the feasibility of smallscale palm oil processing in nigeria, using elele, rivers state as case study. The national bureau of statistics nbs recently reported that nigeria recorded an export rise of 73. The insignificance is as a result of the monocultural nature of production skewed towards the oil sector, although the positive coefficient shows that a lot of prospects still exist in the sector. Monetary policy and export diversification in nigeria in. Smallscale palm oil processing business in nigeria.
Chapter five of this impact of non oil export on economic growth in nigeria material is available, order and download full work chapter five of impact of non oil export on economic growth in nigeria contains. Department of commerce is a federal government agency dedicated to helping smalltomedium sized u. The recent fall in global prices of crude oil triggered a sharp decline in the countrys revenue and foreign exchange earnings. The growing burden of communicable and noncommunicable diseases, and a grosslylacking healthcare infrastructure, notwithstanding nigerias huge oil revenues, indicate the dire need for healthcare solutions. The policy implication of this finding is that failure on the part of policy makers to increase non oil exports will directly hurt the economy of nigeria. Segun awolowo, recently unfolded a zero oil plan which it claimed has the potential. The impact of nonoil export strategies on econonic growth in. Information was elicited through interviews and physical observations. Nigeria adds 11 nonoil products to export list nigeria. The impact of nonoil export strategies on econonic growth. Nigeria nonoil export prospects english the world bank.
The study examines the contribution of foreign direct investment fdi to the performance of nonoil exports in nigeria within the framework of the export led growth elg hypothesis. The performance of the non oil export sector in the past three decades leaves little or nothing to be desired, in spite of the efforts to promote non oil exports in nigeria. The impact of exchange rate volatility on nonoil exports was. The performance of the nonoil export sector in the past three decades leaves little or nothing to be desired, in spite of the efforts to promote nonoil exports in nigeria. Fiiwe, james leekaaga and turakpe, morrison jostus, a comparative analysis on the role of crude oil and nonoil exports on nigerian economy april 5, 2017. Mar 22, 2020 closing its 5year activities in nigeria, it recently held a policy dialogue and an award ceremony, in abuja, with a view to encouraging key plays in the non oil export sector to sustain the. Summary, recommendations, conclusion, references, appendix. Available evidence in nigeria supports that the bulk of fdi inflow into the country goes to the oil sector of the economy. The need for federal, states and local governments to generate adequate revenue from other sources. The effects of the recent global economic crises on nigeria s economy have reaffirmed the urgent need for economic diversification in the country. With the advent of oil, the share of agriculture in gdp declined to 24% by 1987, before increasing to 27% in 1990, and its contribution to export earnings.
Nigerians and the leadership are now awakened to the inevitability of nonoil export for survival and sustainable development. Abogan, akinola and baruwa 2014 note that an assessment of the trend and patterns of activities in the non oil sector of nigeria. With the advent of oil, the share of agriculture in gdp declined to 24% by 1987, before increasing to 27% in. The paper confirms the existence of statistically significant relationship between real exports and exchange rate volatility.
Autoregressive distributed lag ardl model and cointegration analysis are used in this article to evaluate the growth impact of nonoil exports and sustainability of nonoil exports visavis growth in nigeria. Relevant data were collected from the central bank of nigeria statistical bulletin between 1980 and 2011. The nigeria export promotion council nepc believed that the nonoil export sector of the nations economy has been picking up. This can be achieved by employing selectivesectoral monetary policy measures in accelerating investment in various non oil sectors of the economy such as the mining, manufacturing and tourism sectors. Abogan, akinola and baruwa 2014 note that an assessment of the trend and patterns of activities in the nonoil sector of nigeria. This is approved for students in accountancy, business, computer science, economics, engineering, arts. The performance of the non oil exports in the past two decades leaves little or nothing to be desired. On her part, the programme manager, pdf ii, dr titilola akindeinde, said the pdf ii, a private initiative, had been a vanguard for the promotion of nigerias nonoil products and services.
How to boost nonoil export in nigeria the guardian. The impact of exchange rate on nigeria nonoil exports. Closing its 5year activities in nigeria, it recently held a policy dialogue and an award ceremony, in abuja, with a view to encouraging key plays in the nonoil export sector to sustain the. Nigeria records rise in nonoil export agro news nigeria. It is well documented in literature that developing countries heavily rely on primary products. Now since i have made the above points clear, below are 25 hottest profitable nonoil export products in nigeria. Chapter five of this impact of nonoil export on economic growth in nigeria material is available, order and download full work chapter five of impact of nonoil export on economic growth in nigeria contains.
Meanwhile, sales fell sharply for agricultural goods 38. This will catalyse the non oil sector output to export levels for the betterment of the nigerian economy. With financial support of 12 million from the european union eu, unido assists the federal government of nigeria fgn in implementing its strategic framework, vision 20. Statement of the problem the policy concern over the years has therefore been to expand nonoil export in a bid to diversify the nations export base adedipe, 2004. Nigerias proven oil reserves are estimated to be 35 billion barrels, natural gas reserves are trillion feet and her crude oil production is around 2. Exports from nigeria soared 48 percent yearonyear to ngn 1,396 million in december of 2019, driven by shipments of manufactured products 1180 percent and crude oil 14. Full list of non contraband goods in nigeria 2020 current. The paper was set to examine the relationship between different aspects of service trade and non oil export in nigeria as well as assess the impact of capacity development on value of service trade and the implications for improving value of non oil export in nigeria. Nigerian revenue is a mixture of oil export and taxes, but because of income from oil, the government also neglected cash flow from tax and nonoil export commodities. In second place for improving export sales was aircraft and spacecraft via a 221. Pdf contribution of non oil exports to economic growth.
The direct and interaction effect of the both openness variables and nonoil export on economic growth in nigeria is investigated using quarterly data from 19862014. The findings also reveal a unicausal link from export to growth in nigeria, thereby, supporting the exportled growth hypothesis. Pdf determinants of nonoil export and economic growth. Mar 06, 2020 on her part, the programme manager, pdf ii, dr titilola akindeinde, said the pdf ii, a private initiative, had been a vanguard for the promotion of nigerias nonoil products and services. The study explores the relationship between non oil export and domestic investment in nigeria.