Abstract
This study investigates specifically the impact of Oil and Non-Oil Products on Nigeria Gross Domestic Product (GDP). Data were collected for period 1981-2016 Descriptive Statistics and Multiple Linear Regression Approach was used, defining Oil, and Non-Oil Products as independent variables and Gross Domestic Product (GDP) as dependent variable. From the analysis, Oil, and Non-Oil Products contributes immensely to the Nigeria Gross Domestic Product (GDP). Contrary, the Oil Product is positively and insignificant on economic growth of Nigeria (GDP) and the Non-Oil Product has positively and significant on economic growth of Nigeria (GDP). This study therefore recommends that Nigeria should enhance her export promotion strategies and diversify her economy far away from Crude oil.
Highlights
Prior to the discovery of oil in Nigeria, agricultural sector was the main stay of Nigeria economy, contributing about 95% to her foreign exchange earnings, generating over 60% of her employment capacity and approximately56% to her gross domestic earnings (World Bank, 2013)
The non-oil sector of the Nigerian economy can generally be described as those groups of economic activities which are outside the petroleum and gas industry or not directly linked to them
Exports of goods and services represent one of the most important sources of foreign exchange income that ease the pressure on the balance of payments and create employments opportunities (Ruba and Thikraiat, 2014), Generally, export activities are said to stimulate economic growth in a number of ways such as: through production and demand linkages, and economies of scale due to larger international markets
Summary
Prior to the discovery of oil in Nigeria, agricultural sector was the main stay of Nigeria economy, contributing about 95% to her foreign exchange earnings, generating over 60% of her employment capacity and approximately. While the value of both exports and imports are included in the GDP report, imports are subtracted from total GDP, meaning that all consumer purchases of imported items are not counted as contributions toward GDP (Barnes, 2012) Confirming this position, Gorman (2003), presented a mathematical formula for gross domestic product, C + I + G + ( Ex Im). Lyakurwa (1991), posited that export diversification is important because it will play an important role in reducing the variability of the export earnings of developing countries and raising the growth rates of both exports and domestic output. He said that promoting non-oil export products will bring about a reduction of the nation's level of dependence on crude oil or what he describes as, “monoculture foreign trade product”
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