INVESTMENT IN AGRICULTURE AND EXTRACTIVE INDUSTRY: A PANACEA FOR
ECONOMIC DEVELOPMENT

Cordelia Onyinyechi Omodero BSc, MSc, ACA, PhD 1
Prof. Kabiru I. Dandago PhD, FCA, FCTI, FNIM, MNES, AAIF 2
1 Department
of Accounting, College of Management Sciences, Micheal Okpara University of
Agriculture, Umudike, Abia State, Nigeria cordeliaomodero@yahoo.com,
+23408037094845 (Corresponding Author)
2 Department
of Accounting, Faculty of Management Sciences, Bayero University, Kano-
Nigeria. kidandago@gmail.com, +2348023360386

Abstract
Economic diversification into agriculture and extractive industry in Nigeria has been an interesting
area that deserves research attention, especially as the country has been practicing a mono-economy
since the era of oil boom without any clear headway to economic development. The global economic
downturn over the last 3-4 decades has awakened the need for researchers, practitioners and policy
makers in Nigeria to look into other sectors of the economy to enhance economic development.
Hence, this study tries to examine the potential contribution of agriculture and extractive industry to
economic development in the future based on their current contribution to the real gross domestic
product (RGDP) in Nigeria. The study made use of time series data from CBN Statistical Bulletin
ranging from 1981-2017 and Ordinary Least Squares (OLS) method as the statistical tool with the
aid of e-views version 9. The findings revealed that agriculture has a robust positive and significant
impact on RGDP while the solid mineral equally has a significant positive impact on RGDP.
However, crude petroleum and natural gas have a positive insignificant impact on RGDP. This
brings the study to a conclusion that investment in agriculture and solid minerals is highly imperative
now, than ever before. Therefore, the study suggests that economic diversification should be focused
more on agriculture and solid mineral extraction, as government mobilizes local and foreign direct
investors to invest their funds in the Nigerian economy. In addition, the government should try to
manage the crude petroleum and natural gas exploration and their related financial transactions, so
as to prevent fund repatriation and transfer to other countries rather investing the funds in Nigeria,
especially in the agricultural, solid mineral and manufacturing sectors.
Keywords: Agriculture, extractive industry, solid minerals, crude petroleum, natural gas,
Economic development, real gross domestic product

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