Diversification of the Nigerian Revenue Base; Contribution of the Non Oil Sector

This study seeks to determine the effect of the Non-Oil revenue on Economic Development. It also highlights, the monoculture state of the Nigerian economy and the need to diversify the revenue base of the economy. The impact of the revenue from the agricultural sector, solid mineral sector and the Manufactures on the Gross Domestic Product (GDP) was carried out. The Analytical technique used was the co-integration analysis, which encompasses the use of unit root test and the error correction model. The findings from the study revealed that dynamic relationship exists between the revenue from the non-oil sector and economic development.

The major sub-sectors of the non-oil sectors, agriculture, Manufactures and solid minerals were tested individually on the total revenue and all have significant results except Manufactures. On the basis of empirical findings, there is the need to promote expanded production in both the agriculture and industrial sector to diversify the export market for Nigerian goods rather than relying majorly on the European and North American markets while at the same time giving grater attention to the packaging and the design of export product to command better prices and patronage at the international market. The study also suggested the necessity of upgrading basic infrastructure so as to create the conducive environment for expanded output in the non-oil sub-sector of the Nigeria economy.