Investigation of the Impact of Non-Oil Revenue on Economic Growth in Nigeria

This study investigated the time series role of non-oil revenue variables on economic growth in Nigeria. This study thus extends the literature in this area by employing cointegration methodology alongside error correction mechanism to investigate the impact of non-oil revenue on economic growth in Nigeria. The study employed annual observations from 1980 to 2013. The non-oil revenue variables analyzed are: agricultural revenue and manufacturing revenue. Results show that agricultural revenue, manufacturing revenue and interest rate have significant impact on economic growth in Nigeria. Results also show the existence of long-run equilibrium relationship and short run dynamic adjustment with speed of about 52 % to restore equilibrium. The study concludes that non-oil revenue has the potential to unlock Nigerias economic morass an policy recommendations are provided.