Strategic Financial Management and Nigeria’s Non-Oil Export Boost: Unit Root – Causality Treat

Abstract

Intermittent sub-optimal financial economies of Nigeria’s non-oil sector are traceable to incoherent schematic booster commitments (SBCs). Although the oil sector remains dominant in the political economy of Nigeria, it has necessarily but not sufficiently helped development matters, particularly with respect to new enterprise creation and employment generation. To re-enact the complementary potency of other viable sectors, this study harnesses secondary data on Nigeria’s non-oil exports, exchange rate, foreign exchange earnings, and gross domestic product from publications of the Central bank of Nigeria (CBN) over a period of 25 years. The relevant time series are subjected to unit root, regression and causality statistical analytical process. The results complementarily establish significant relationship between gross domestic product and non-oil exports complemented by the other predictor variables. Recent macroeconomic performance postings in this regard are impressive and ipso facto justify every resolve to accord greater SBCs to non-oil commercial/industrial activities in the Nigerian economy. However, in line with the ideals of strategic financial management, efficient coordination of focal institutional initiatives and incentives, especially of the Nigerian Export Promotion Council (NEPC) and Nigeria Export – Import Bank (NEXIM), is vitally critical for the boost to make a boast in the global economy.

Key Words: Export incentives, Non-oil sector, Strategic financing management