This study is to examine the role of
non-oil export on economic development of Nigeria and the objectives are
as follows; to examine the relationship between non-oil export and the
level of gross fixed capital formation in Nigeria, to examine the
relationship between non-oil exports on real gross domestic product. The
method applied in analyzing data for this work are based on statistical
at descriptive methods of analysis. (regression analysis was used to
analyses the respondents opinion. The finding is that there is
significant relationship between non- oil export and economic
development of Nigeria. In conclusion, several recommendations were made
to assist policy makers about how to increase the production of non-oil
exports in Nigeria.
TABLE OF CONTENTS
1.2 The Statement of the Problem
1.3 The Aim and Objectives of the Study
1.4 The Research Questions
1.5 Research Hypotheses
1.6 The Research Methodology
1.6.1 Sources of Data
1.6.2 Model Specification
1.7 Significance of the Study
1.8 The Scope and Limitation of the Study
1.9 Organisation of the Study
CHAPTER TWO: LITERATURE REVIEW
2.2 Definition and Concept of Non-Oil Export
2.3 The Structure of Non-Oil Export in Nigeria
2.3.1 Trade Theories: Theoretical Framework
2.3.2 Classical Trade Theory
2.3.3 Neo-Classical Theory of Trade
2.3.4 Trade as an Engine of Growth
2.4 Empirical Evidence from the Nigerian Economy
2.5 Solutions to Economic Development
CHAPTER THREE: STRUCTURAL COMPOSITION OF NON-OIL
EXPORT IN NIGERIA
3.2 The Structure of Non-Oil Export
3.3 Effect of Non-Oil Export in Nigeria
3.4 The Trends of Value-Added Non-Oil Export in Nigeria
3.5 Export Promotion Policy Measures and Institutional
Support Framework in Nigeria
3.5.1 The Nigeria Export Promotion Council (NEPC)
3.5.2 The Nigerian Export Processing Zone (NEPZ)
3.5.3 The Nigerian Export-Import Bank (NEXIM)
3.6 Appraisal of Non-Oil Export Promotion in Nigeria
CHAPTER FOUR: RESEARCH METHODOLOGY, DATA ANALYSIS
AND INTERPRETATION OF RESULTS
4.2 Estimates of Regression Results (1980-2009)
4.3 Analysis and Interpretation of Results
4.4 Major Findings
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
5.1 Summary of Findings
It is an established historical fact
that prior to 1970s, non-oil products in a wide variety of forms were
the principal sources of foreign exchange earnings in Nigeria. During
this period, the agricultural sector produced large quantities of food
and cash crops (cocoa, palm oil, groundnut etc) for export as well as
for domestic consumption. Nigeria was the world's largest producer of
palm produce and groundnut, and the second largest producer of cocoa. In
addition, cotton, rubber and timber products were important exports.
However, as a result of a major
structural transformation from what was primarily agriculture- based
since early 1970, crude oil production and marketing has been a dominant
feature of Nigeria's development programme. The oil sector contributes
about 80% of government revenue, as such, it is a major source of growth
to the Nigeria economy. Although the oil sector has been contributing
to the bulk of government revenue. The early 1980ls witnessed
a combination of demand and supply factors as well as Western political
intrigues which have consistently weakened the Organization of
Petroleum Exporting Countries (OPEC) market share and price
stabilization policy on crude oil marketing. This has resulted downward
pressures and instability of petroleum prices and consequent downward
trend in government revenue from oil export from the peak attained in
Thus, the declining and unstable revenue
from oil, rising demand for foreign exchange for industrial and
commercial purposes external debt have combined to make it mandatory for
the country to design a national program of non-oil export development.
This becomes necessary if the country is to continue to meet its
external financial obligations. The urgent need to diversify the
country's resource based is not only economically expedient but also for
immense political strategic significance.
The development of non-oil production
facilities will promote, not only growth and create additional
employment opportunities, but will also reduce the ever present dangers
of the nation's precarious dependence on a single commodity over which
the country has little control.
The main thrust of this study is to
carry out a critical assessment of non-oil exports in terms of its
contribution to economic development in Nigeria. Non-oil exports in
Nigeria includes, Agricultural products (cocoa, cotton, palm produce
rubber and groundnut), solid mineral such as tin, ore, columbine and
coal and manufactures. It is useful to point out that though the non-oil
sector has lost its significance as a major source of revenue
generation in the economy, it is still the dominant particularly in
terms of its share in employment. Thus, according to the fourth Nation
Development plan 1981 - 1985, the agricultural sector alone provided
employment for 60% of all those gainfully employed in 1980.
1.2 THE STATEMENT OF RESEARCH PROBLEM(S)
Traditionally, non-oil exports are
mainly agricultural products that their supply depends on vagaries of
nature. Changes in climatic condition, causes variations in agricultural
production. When there is a good climatic condition supply expands. The
reverse, however, holds when the climatic condition is unfavourable.
The after-math of the variances of nature is fluctuation in prices.
In this direction, this study will;
- Evaluate the relationship between non-oil export and the real gross domestic product
- Examine the relationship between non-oil export and gross fixed capital formation in Nigeria.
1.3 THE AIM AND OBJECTIVES OF THE STUDY
The main objective of this study to
examine the role Non-Oil Export on Economic Development of Nigeria
(1980-2009). The specific objectives of this study are:
i. To examine the relationship between non-oil export and the level of gross fixed capital formation in Nigeria.
ii. To examine the relationship between non-oil export on real Gross Domestic Product.
iii. To also examine provide an
insight into the impact of the growth of non-oil export industry on
economic development of Nigeria.
1.4 THE RESEARCH QUESTIONS
Therefore, the statement of problems is stated below by finding answers to the following questions:
i. What are relationship between non-oil export and the level of gross capital formation in Nigeria?
ii. What are relationship between non-oil export on economic development and Real Gross Domestic Product?
iii. What are the impacts of the growth of non-oil export industry on economic development of Nigeria?
1.5 THE STATEMENT OF RESEARCH HYPOTHESES
This study aimed at testing, the validity of the following;
Ho: That there is no significant relationship between Real Gross Domestic Product and non -oil exports in Nigeria.
HA: That there is a significant relationship between Real Gross Domestic Product and non-oil exports in Nigeria
Ho: That there is no significant relationship between Real Gross Fixed Capital Formation and non-oil exports in Nigeria
HA: That there is a significant relationship between Real Gross Fixed Capital Formation and non-oil exports in Nigeria.
Ho: That there is no significant relationship between non-oil exports and economic development of Nigeria.
HA: That there is significant relationship between non-oil exports and economic development of Nigeria.
1.6 THE RESEARCH METHODOLOGY
The methodology adopted for this
research work shall be purely statistical i.e. the Ordinary Least Square
regression (OLS). A single regression analysis of various tests were
carried out: Coefficient of determination, standard error test, F
-Statistics, Student T-Test etc.
1.6.2 SOURCES OF DATA
Data requirement for this study would be
purely secondary data. Secondary data includes data sourced from the
Central Bank of Nigeria (CBN), Financial and Economic reports, Annual
and various issues, Federal Office of Statistics (FOS) Conference
papers, Journals and text-books.
1.6.3 MODEL SPECIFICATION
RGDP = F (exno , exvano, extot, GCF)
RGDP = Real Gross Domestic Product
GCF = Gross Fixed Capital Formation
Exno = Non-Oil Export
Exvano = Value-added non-oil export
Extot = Total Export
?o = Intercept or Constant term of the relationship
?l- ?4 = Parameters of Co-efficient
U = Stochastic Variable
1.7 THE SIGNIFICANCE OF THE STUDY
The study will be of great significance on the following ground:
First, it will contribute to existing
studies on the same subject. Secondly, the study will be a reference
point for further researchers; and lastly, it will provide useful
recommendations to policy makers as regards the viability of the
national programme of non-oil export development in Nigeria.
1.8 THE SCOPE AND LIMITATION OF THE STUDY
This study will cover the period between
1980-2009 (a period of 30 years). This would afford us to obtain a
robust result from the regression techniques.
The major limitations are time, finance
and unavailable data. Due to these constraints, it will either directly
or indirectly affect the result of the project.
1.9 ORGANIZATION OF THE STUDY
The research work will be divided into five chapters and they are as follows;
Chapter one: It
consists of the introduction, the statement of the problem, the aim and
objectives of the study, the research questions, the research
hypotheses, significance of the study, the research methodology, the
scope and limitation of the study, the organization of the study.
Chapter two: It consists of the literature review.
Chapter three: It consists of the structural composition of the study.
Chapter four: It consists of the research methodology, data analysis and interpretation of the results.
Chapt1er five: It consists of the summary, conclusion and recommendations, then the references.