Ijing Joseph Agida
Statement of the Problem Nigeria as a
nation is expected to grow continually until
it is developed. Nigeria in the sixties
sustained its economy through non-oil
overdependence on crude oil revenue has
affected the economy negatively thereby
reducing productivity in the economy. Non-
oil sources in Nigeria comprising mainly of
agriculture products, mineral resources,
manufacturing and of course non-oil taxes
revenue has suffered plenty years of
conceived government policies, neglect and
lack of basic infrastructure (Likita et al,
2018). The problem of over reliance on oil
include price fluctuations, crisis in the Niger
delta region, uncertainty of the future on
whether the oil wells will dry up, change in
technology etc. The price of oil has
continually fluctuated, thereby putting
Nigerian economy in danger. This is
because Nigeria now has a mono economy
due to a sharp shift from non-oil sector to
almost only oil sector. The non-oil sector
ranging from manufacturing activities, solid
minerals, agricultural activities, companyBook of Abstract
income taxes and value added taxes as well
as custom and excise duties have been
neglected due to over dependence on oil.
The implication of the oil boom was the
gradual decline in the other non-oil sectors
especially the agricultural sector that
received less attention. Nigerians are no
longer interested in agriculture as practiced
by our fore fathers. This is because
everybody need white-collar job.
Beinteman and Stadt (2006) asserted that,
most African nations remain dominated by
small-scale farmers who employed crude
tools and the use of largely fragmented land
to cultivate the crop and rear animals for
man’s advantage. Solid minerals deposit in
Nigeria have been neglected ranging from
tin, columbite, coal, iron etc. manufacturing
activities are not encourage due to poor
power supply and other unbearable
conditions. The tax system in Nigeria is full of
fraud as tax evasion and avoidance is the
usual practices (Akwe 2014). According to
Heritage Foundation 2012 data, France had a
tax to GDP ratio of 44.6%, Sweden 45.6%, UK
39%, US 27%, Tunisia 12%, Burkina Faso
11.5% and Nigeria 6.1% (PWC, 2016).
Investors in Nigeria do not have enabling
environment to strive. This is due to lack of
infrastructural facilities ranging from power,
roads network, good markets, government
policies etc. According to Adegbei (2017),
stealing of governments funds in the
collection of customs and excise duties is
another very worrisome thing to consider.
Most countries of the world that are without
oil, use the aforementioned to develop the
economy of their nations. Currently, the
consumption of oil globally is beginning to
reduce as vehicles manufacturing companies
in China are now producing vehicles that do
not use fuel. These vehicles are electrical in
nature without engines that needs fuel. The
vehicles use battery and can only be
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recharged when the batteries goes down.
The Chinese government has even given
them a mandate to produce up to 50% of
such vehicles in the nearest future to remain
in operations. With this development,
coupled with the dwindling nature of oil
prices and other problems of Niger Delta
militants, it constitute a burden in the
researcher’s heart which is necessitating this
Analysis of the contribution of oil and non oil
revenue to gross domestic product (GDP) of
some oil producing countries shows that in
Congo oil sector contributed 65% while non-
oil sector contributed 35%. In Sudan, oil
sector contributed 78.8% while non-oil sector
contributed 21.2% and in Nigeria, oil sector
contributed over 90% of the gross domestic
product (GDP). The solid minerals sector has
equally under contributed to the sustainable
economy growth in Nigeria. According to Al-
Awin (2017), Nigeria’s domestic mining
industry is still underdeveloped as it
contributes only 0.3% of the nation’s gross
domestic product (GDP). According to AlAwin
(2017), the dominance of illegal miners,
proceeds from coordinated exports in the
solid mineral sector could help in the
diversification of the nation’s resources.
Nigeria has significant solid mineral resources
with potentials to attract investment for
economic diversification from oil. But the
mining sector is dominated by foreigners
with collaboration from indigenes believed to
be sponsored by money bags. Agricultural
revenue contribution to gross domestic
product (GDP) is at a decline. Between the
year 2008 and 2018 its contribution has
dropped from 25.28% to 21.2% (Plecher,
2019). According to Plecher, 2019, the
problems responsible for this decline are lack
of interest from Nigerians, lack of
infrastructures, environmental problems
as well as marketing. In the same vain is the
manufacturing revenue contribution to the
gross domestic product (GDP) in Nigeria.Book of Abstract
According to Onuba (2019), manufacturing
revenue contribution to GDP in 2018 was
9.65%. According to Onuba (2019), this low
contribution can be attributed to problems
such as near nonexistence of power,
insecurity, poor infrastructures, irregular
taxes etc.
Suberu et al (2015) did a study on
diversification of the Nigerian economy
towards a sustainable growth and
development. The study was descriptive in
nature and not empirical. Uzonwane (2015)
did a study on economic diversification in
Nigeria in the face of dwindling oil revenue. It
was equally descriptive and not empirical.
Onourah (2018) did a study on non-oil export
and economic growth in Nigeria between the
period 1985 to 2017 using cassava,
groundnut, millet, yam, and maize to
represent non-oil export and GDP for
economic growth. Secondary data were used
and regression analysis was conducted. Felix
et al (2012) did a study on non-oil revenue
and economic growth in Nigeria between the
periods 200 to 2008. The study was empirical
but without sub-variables for non-oil
revenue. Secondary data were equally used
and a regression analysis used in the data
analysis. Likita, Idisi and Mavenke (2018) did
a study on non-oil revenue and economic
growth in Nigeria between 1981 to 2016
using variables like agriculture, solid mineral,
manufacturing, companies income tax,
custom and excise duties for non-oil revenue
and GDP for economic growth. Secondary
data were used and multiple regression was
used for data analysis. All ofthese studies did
not consider value added tax (VAT) as one of
the major sources of government revenue.
Also, the studies conducted relied on only
the gross domestic product (GDP) in
measuring economic growth, but this study
shall consider both the gross domestic
product (GDP) and per capita income (PCI) as
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proxies to measure sustainable economic
growth. The per capita income (PCI) as a
proxy is very important as it give
considerations to population growth.
According to Merza (2003), per capita income
or GDP per capital measures economic
growth of a country taking into consideration
the population growth. gross domestic
product(GDP) and population estimates, that
is per capita income produces a useful
statistic for comparison of wealth between
sovereign territories. The studies did not take
into consideration the following pre-test for
analysis; Unit root test, Augment Dickey-
Fuller (ADF) test, Co-integration test, Error
correction model (ECM), Vector Auto-
regression (VAR), Impulse Response Function
(IRF) and Granger Causality test. The time
covered by all of these studies was up to
This study however seeks to further evaluate
the implications of diversifying to non-oil
sustainable economic growth in Nigeria.
This the researchers will do by including
value added taxes (VAT) to other variables
of non-oil revenue studied. Sustainable
economic growth is the rate of growth
which can be maintained without creating
other significant economic problems for the
future generations. Sustainable economic
growth shall be measured using per capita
income (PCI). Economic growth will be
product (GDP). The pre-test for analysis
such as Unit root test, Augment Dickey-
Fuller (ADF) test, Co-integration test, Error
correction model (ECM), Vector Auto-
Function (IRF) and Granger
ResponseBook of Abstract
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Causality test shall be used. The study will
expand to cover up to 2018.
Some of which are: Government: The
Objectives of the Study The main
findings of this study shall help to guide the
objective of this study is to examine
government in their policies formulation. It
the contributions of non-oil
revenue to Nigeria’s economy growth
sustainability. The specific objectives
will help them to formulate favourable
policies in the aspect of non-oil revenue so
as to encourage participation in the non-oil
are to;
sector. This will contribute towards the
agricultural revenue is to gross where the naira was equal or even more
domestic product (GDP) and per than the dollar in value.
capita income (PCI) in Nigeria
manufacturing sector revenue to
gross domestic product (GDP) and
per capita income (PCI) in Nigeria
economic growth as witnessed in the sixties
economy will find the research useful as it
will encourage their participation in the
different sectors of the economy. It will help
them to know the areas in which their
Examine the contributions of solid
minerals revenue to gross domestic
contributions will help economic growth in
product (GDP) and per capita
The study will equally help to reduce
income (PCI) in Nigeria
of the rate of overdependence on the oil
company income taxes to gross sector by helping them to diversify
domestic product (GDP) and per into other sectors.
capita income (PCI) in Nigeria Scope of the Study
customs and excise duties taxes to
gross domestic product (GDP) and
per capita income (PCI) in Nigeria
Examine the contributions of value
added taxes (VAT) revenue to gross
domestic product (GDP) and per
capita income (PCI) in Nigeria.
Significance of the Study This study shall be
of importance to so many people.
This study covers the areas of non-oil
revenue as it relates to the economic
growth of Nigeria. The study shall take into
consideration proxies like agricultural sector
sector revenue, solid minerals sector
revenue, company income tax revenue,
customs and excise duties revenue and
value added taxes
revenue.Book of Abstract
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growth in Nigeria
shall be measured in terms of gross
domestic product (GDP) and per capita
income (PCI) in Nigeria. The study shall
period 1995-2018.
Secondary data from the Central Bank of
Nigeria statistical bulletin shall be use.

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