ABSTRACT

The study was carried to ascertain the effect of oil and non-oil revenue of the government on economic growth of Nigeria. The scope of the research covers a period of thirty-five years running from 1981 to 2015. The researcher made use of multiple linear regression models. Secondary data on oil and non-oil revenue of the government for the period were collected from CBN statistical bulletin. Economic growth which is the dependent variable was represented by gross domestic product (GDP), real gross domestic product (RGDP) and per capita gross domestic product (PCGDP). The researcher applied the augmented Dickey-Fuller unit root test, cointegration test and error correction model in analysis of data. From the findings, oil and non-oil revenue exerted a positive and significant effect on gross domestic product, real gross domestic product and gross domestic product per capita of Nigeria. On this premise, the study recommended that more can be done to increase revenue generation through non-oil producing sectors of the economy by making available enabling environment and incentives that can facilitate economy diversification. Also, oil revenue can as well be improved on by instituting proper corporate governance that checks corruption and ensures full revenue remittance to the Federation account by the Nigeria National Petroleum Corporation. The researcher further suggested vesting the right for oil production solely on Nigeria owned companies like the NNPC other than sharing such with expatriate firms.