Identifying non-oil sectors potential and impact of corruption on economic growth in Nigeria

Abstract

Over the years, non-oil sectors have shown its importance to the economic growth, reduction of poverty and improvement of national development. Hence, it has the potentials of providing a means of income and measure of welfare for strategies for the less the masses. Although, despite the positives that the non-oil sectors have shown economically, the Impact of corruption on the oil and non-oil sectors have played a vital role in the slow decay of her development. This study focuses on the potential role of non-oil sectors and role of public sector corruption in analysing the economic growth processes in Nigeria. The research focuses on using descriptive variables like Crude petroleum, Crop production, Manufacturing, Trade and Real estate, reported cases and convictions (By Icpc and Efcc), Oil rents, Inflation, Investment, Population, Human capital (total school enrolment), Trade openness and General government consumer expenditure while we use GDP as the dependent variable. The set of objectives were to examine the impact of oil and non-oil sectors over the last four decades, to determine the impact of corruption on the economic growth and to construct a new data to measure corruption using the reports from anti-corruption agencies of Nigeria. Based on the Methodology, the study is founded on the secondary method of data collection which was analysed by the ARDL estimation technique for empirical analysis using time series yearly data for 42 years (1981-2023) and 23 years (2000 – 2023) for Non-oil and Corruption respectively. The outcome and findings of this model shows that the independent variables were positively significant and showed a long-run relationship except Information sector which was positive but showed no long-run relationship. Model 2 study emphases on the effects of corruption on the economic growth of the country using variables like Corruption, oil rent, inflation, government expenditure, population, school enrolment and international trade while we use GDP as the dependent variable. The outcome of this study show that Trade, Corruption, Population, inflation and Gross fixed capital formation were significant and positive with a long-run relationship while Total school enrolment and General Government consumption were positive but insignificant to GDP. The thesis recommends policies that will enhance vibrant and sound macroeconomic fundamentals such as investment promotions, more effective government consumption, price stability, a stronger judiciary system and uncompromised agencies for fighting corruption.

Date of Award	4 Nov 2024
Original language	English
Awarding Institution	Abertay University
Supervisor	Gonzalo Forgues-Puccio (Supervisor) & Sunday Samuel (Supervisor)