Can Non-Oil Exports boost Agriculture Sector Performance in Nigeria? A Tale for Oil Independency

Abstract

The study examines the effect of non-oil export on the agricultural sector performance in Nigerian economy using empirical evidence and modern research analysis. The bulk of non- oil export of Nigeria comes from agriculture and pre-processed products. Hence, non-oil export from perspective of efficiency-seeking indicates that non-oil export always aim at taking advantage of poor-efficient production condition and boost the productive edge of resources. There is a general believe that non-oil exports commodities has nothing to do with sectoral growth in Nigeria, this role is therefore the major focus of this study. Modern econometric analysis is used to validate if there is any relationship between non-oil export and sectoral performance, we also conducted unit root test to detect the risk of non stationarity of any of the variables involve in the model specified. Having tested for unit root, the paper also considers cointegration test and a parsimonious result of the least square estimate is presented. Lastly, a causality analysis of the relevant variables was undertaken in order to verify the relevance of non-oil export on growth in Nigeria. Interestingly, non-oil export commodities fail to enhance growth of the economy in recent findings, while agriculture, openness and exports promote growth in both the short and long run in our dear country.