The findings revealed that the impact of nonoil export on domestic investment was positive but insignificant. The findings also reveal a unicausal link from export to growth in nigeria, thereby, supporting the exportled growth hypothesis. The study uses three measures of export namely, total export, oil export and non oil export. However, these challenges represent enormous opportunities for companies from the united states u.
Effects of oil export revenue on economic growth in nigeria. The impact of exchange rate on nigeria nonoil exports. Get free research paper on impact of exchange rate policy on nonoil exports in the nigerian economy 19992014 project topics and materials in nigeria. Nigeria adds 11 nonoil products to export list 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. This is also consistent with the findings in the shortrun. 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. The unit root test showed that both economic growth and export are integrated of order one, i. Abogan, akinola and baruwa 2014 note that an assessment of the trend and patterns of activities in the nonoil sector of nigeria. This study investigates the feasibility of smallscale palm oil processing in nigeria, using elele, rivers state as case study.
Non oil export, economic growth, nigeria, disaggregated analysis. Abogan, akinola and baruwa 2014 note that an assessment of the trend and patterns of activities in the non oil sector of nigeria. The mono economy nature of nigeria and the need to diversify the economy form part of the motivation for the study. Nigeria records rise in nonoil export agro news nigeria. It augments domestic investment di, which is crucial to the attainment of economic growth.
Equatorial journal of marketing and insurance policy, vol. 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 stakeholders, who argued that nigeria has the best services companies in the subsaharam africa, however lamented that credit to nonoil export sector has. A comparative analysis on the role of crude oil and non. 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. 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. If playback doesnt begin shortly, try restarting your device. 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. Monetary policy and export diversification in nigeria in. A comparative analysis on the role of crude oil and nonoil. Smallscale palm oil processing business in nigeria. The impact of nonoil export strategies on econonic growth in.
Exchange rate volatility and nonoil exports in nigeria. Empirically, nigeria s economy is found to be a resource dependent economy. The study investigates the influence of foreign direct investment fdi and infrastructural development on non oil exports in nigeria 19812014. 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. Nigeria is the 49th largest export economy in the world and the 124th most complex economy according to the economic complexity index eci. Nigeria imports different types of goods from different countries and in many cases, imports things that are banned. The result provides new insights into the oil curse phenomenon in nigeria. This study examined the causality between nonoil export, financial sector development and economic growth in nigeria. The performance of the non oil exports in the past two decades leaves little or nothing to be desired. Global integration, nonoil export and economic growth in. 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. 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. Pdf oil price, exchange rate and nonoil export in nigeria.
Segun awolowo, recently unfolded a zero oil plan which it claimed has the potential. Department of commerce is a federal government agency dedicated to helping smalltomedium sized u. The study recommended that monetary policy should be purpose driven towards the achievement of export diversification. 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. This is approved for students in accountancy, business, computer science, economics, engineering, arts. This report examines the export potential of nigerias principal nonoil sectors, agriculture and manufacturing.
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. Relevant data were collected from the central bank of nigeria statistical bulletin between 1980 and 2011. The study investigates effect of nonoil export on the economic development of nigeria. Download the full research work in doc editable format. The study investigates the influence of foreign direct investment fdi and infrastructural development on nonoil exports in nigeria 19812014. Central bank of nigeria, changing structure of the nigerian economy 2000 and. This enhances the stability and robustness of results. 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.
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. 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 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. 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. The impact of nonoil export on domestic investment in nigeria.
How to boost nonoil export in nigeria the guardian. Nigeria government revenues 20102019 data 20202022. The study used per capita income as proxy for economic development and expressed it as a function of nonoil export volume, trade. Palm oil is a major food and non food ingredient consumed by virtually everyone in nigeria through the use of palm oil related products. Time series analysis of nonoil export demand and economic. Oec nigeria nga exports, imports, and trade partners. 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.
Although no country is immune to such global crises, the over reliance on oil export revenue by nigeria. Pdf contribution of non oil exports to economic growth. The export of crude oil now constitutes about 96% of total exports. Available evidence in nigeria supports that the bulk of fdi inflow into the country goes to the oil sector of the economy. 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 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. Effects of nonoil export on the economic development of. 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.
The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. For analysis, it uses one measures of financial openness. Information was elicited through interviews and physical observations. Full list of non contraband goods in nigeria 2020 current.
The paper confirms the existence of statistically significant relationship between real exports and exchange rate volatility. Summary, recommendations, conclusion, references, appendix 1, appendix ii and appendix iii. The impact of non oil export on economic growth of nigeria. The nigeria export promotion council nepc believed that the nonoil export sector of the nations economy has been picking up. 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.
This study examines the contribution of non oil export to the growth of the nigerian economy for the period 19852015. The findings also reveal a unicausal link from export to growth in nigeria, thereby, supporting the export led growth hypothesis. 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. By accessing this site, you accept that we process certain information you send e. In carrying out this study, secondary data were collected and empirical analysis was made. It is well documented in literature that developing countries heavily rely on primary products. Nigeria has recorded a significant rise in its nonoil export, with agricultural goods increasing the countrys foreign exchange earnings. 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. The impact of nonoil export strategies on econonic growth.
Global integration, nonoil export and economic growth in nigeria. 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. 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 recent fall in global prices of crude oil triggered a sharp decline in the countrys revenue and foreign exchange earnings. Cbn introduces uniform exchange rate for naira by ismail abdulazeez mar 22, 2020 4. 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. This surge was due to increases recorded in the export of goods within the manufacturing and industrial sectors. He added that the countrys exports were no longer limited to the traditional markets of europe, especially the united kingdom. The impact of non oil export on economic growth in nigeria the impact of non oil export on economic growth in nigeria abstractthe essence of this work has been to determine the effect of non oil export on economic growth in nigeria, during the period of 1986 2010. Nigeria unserious about nonoil exports vanguard news. 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.
Studies have shown that both the oil and the non oil exports have contributed to the overall growth of the nigerian economy onodugo et al. Get free research paper on oil and nonoil export on the economic growth of nigeria 1983 2007project topics and materials in nigeria. Nonoil export, foreign direct investment and infrastructural. With the advent of oil, the share of agriculture in gdp declined to 24% by 1987, before increasing to 27% in. Impact nonoil export on economic growth of nigeria mensch mind. 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.
Diversification of nonoil export product as a precondition. Discussions about step by step of starting export business in nigeria. 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. Pdf determinants of nonoil export and economic growth. 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. 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. Are you aware that nigeria is a country is in need of many goods and products.
The need for federal, states and local governments to generate adequate revenue from other sources. The economy is experiencing a fall in exchange earning, a fall in gdp. Data were analysed using descriptive statistics, correlation analysis and regression analysis. 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.
Apr 07, 2020 full list of non contraband goods in nigeria 2020. 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. The nigeria export promotion council nepc believed that the nonoil export sector of. The effects of the recent global economic crises on nigeria s economy have reaffirmed the urgent need for economic diversification in the country. Impact of nonoil export on economic growth in nigeria. Summary, recommendations, conclusion, references, appendix. Nigerians and the leadership are now awakened to the inevitability of nonoil export for survival and sustainable development. The decline in price of oil in recent years has led to a decrease in the funds available for distribution to the three tiers of government in nigeria.
Edo, delta, ondo, ogun, abia, anambra, akwa ibom, cross river, rivers, ebonyi and bayelsa. 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. 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 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 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. 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. 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. For most oilproducing economies, this depends significantly on exploring the full potential of the nonoil sector. 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. Nigeria nonoil export prospects ingles banco mundial.
Nigeria nonoil export prospects english the world bank. Nigerias top 10 exports are highly concentrated accounting for 99% of the overall value of the countrys global shipments. 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. The nigerian export promotion council nepc headed by mr. Pdf the impact of nonoil export on the nigerian economy. The paper investigates the impact of exchange rate volatility on nonoil exports in nigeria, 1986120084. 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. 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. Miscellaneous base metal goods represents the fastest grower among the top 10 export categories, up by 239,302% from 2018 to 2019. The national bureau of statistics nbs recently reported that nigeria recorded an export rise of 73.
Now since i have made the above points clear, below are 25 hottest profitable nonoil export products in nigeria. The study explores the relationship between non oil export and domestic investment in nigeria. The impact of exchange rate volatility on nonoil exports was. This study focuses on global integration, nonoil export and economic growth in nigeria. 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.
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