THE IMPACT OF OIL RESOURCE ABUNDANCE ON BUILDING AND CONSTRUCTION INVESTMENT IN NIGERIA

This study empirically evaluated the impact of Oil Resource Abundance (ORA) on the building and construction sector investment (BCI) in Nigeria. Two Stage Least Squares (2-SLS) and the Three Stage Least Squares (3- SLS) methods of estimation were adopted in estimating the empirical model. The results revealed that ORA has a positive but insignifi cant effect on BCI. The degree of responsiveness of BCI to a 1% change in ORA is 0.15%. MANI positively and signifi cantly affected BCI. The magnitude of the sensitivity of BCI to 1% change in MANI is 1.09%. REXR has positive but insignifi cant effect on BCI. The results further showed that the price level signifi cantly determine the size of BCI. 1% change in the price level causes investment in the building and construction sector to drop by about 3.6%. RGDP signifi cantly and positively affects BCI. A 1% increase in RGDP results into 3.51% increase in BCI. Finally, a 1% rise in RIR reduces BCI by about 2.3 %.