The Economic Evaluation of Exports in Nigeria

Abstract

In this research, the economic evaluation of exports in Nigeria is carried out within the period of 1985-2022. Hence, econometric technique adopted to achieve the objectives were unit root, co-integration and Vector Error Correction Model (VECM), in which oil exports (OEXP), non-oil exports (NOEX), foreign direct investment (FDI) and exchange rate (EXR) were regressed on gross domestic product (GDP), making use of yearly data from statistical report in CBN. The outcome of unit root test revealed that every variable used was stationary at first deviation and long run association amongst the variables was also found. The results of the VECM model showed that oil exports had affirmative and important impact on the expansion of the Nigerian’s economy, while non-oil exports had negative as well crucial impact on economic expansion in Nigeria. Based on the findings above, the researchers advised that administarion in the country should develop meaty economic policies that can resuscitating the non-oil sector, mostly the agricultural sector, so as to stimulate the non-oil sector products.