Overdependence on the Oil Sector and Economic Growth in Nigeria: The Counselling Implications
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Date
2016-11-09
Authors
Olusakin, A.M
Adeyinka, T.J
Journal Title
Journal ISSN
Volume Title
Publisher
UNILAG Annual Research Conference & Fair
Abstract
Before the exploration and exportation of crude oil in Nigeria, Nigeria's economy was eminently sustained by agriculture which accounted for over 70% of foreign exchange earnings and 95% of local food consumption. Today, petroleum dominates the Nigerian economy. Fluctuation in world oil prices and the attendant global economic crisis has led to budget deficit which symbolized a great weakness in the nation's economy. This has tended to negatively affect our development plans and the implementation of capital projects. This calls for urgent need for diversification as a means of freeing our economy and the nation from over-dependence on oil. This study thereforeinvestigated overdependence on oil sector and economic growth in Nigeria: The counselling implications. The study adopted descriptive survey research design and made use of secondary data.The study revealed that: Overdependence on crude oil impacted positively on growth based on the two period lag value of the variable, however, this positive impact was short lived as its current value in the short run impacted positively on growth.Oil consumption impacted positively but insignificantly. Oil production impacted negatively and significantly on growth in the short run but impacted positively and significantly on economic growth in the long run. Crude oil price volatility impacted negatively on growth both in the short and long run. The results were discussed and counselling implications were made. The most important are: Government should embark on diversification strategies: for Nigeria is the return to commercial agriculture. The processing and manufacturing Industry should be revitalized.
Description
Paper Presented at the 11th UNILAG Annual Research Conference and Fair, 8th -10th November.
Keywords
Oil sector , Economy , Diversification , Agriculture , Counselling , Implications. , Research Subject Categories::SOCIAL SCIENCES::Social sciences::Education
Citation
Olusakin, A.M and Adeyinka, T.J. (2016) Overdependence on the Oil Sector and Economic Growth in Nigeria: The Counselling Implications. Presented at the 11th UNILAG Annual Research Conference and Fair, 8th -10th November.