Economics at your fingertips  

Can Non-Oil Incomes Outride Oil Incomes in Nigeria? Evidence from Autoregressive Integrated Moving Average

Adebayo Adedokun

African Journal of Economic Review, 2019, vol. 07, issue 1

Abstract: The study employed data from 1970 to 2014 to forecast government non-oil revenues and non-oil exports in Nigeria in an attempt to know the number of years it would take non-oil incomes to outpace the income from oil sources using Autoregressive Integrated Moving Average (ARIMA) Model. The results show that non-oil revenue of government will match the size of 2014 government oil revenue in 2023 (9 years), while it would take 466 years for non-oil exports to achieve the oil exports equivalence. However, it would take non-oil revenues and non-oil exports 14 years and 565 years respectively to achieve the 2011 historic highest oil incomes (oil revenues and oil exports) of 8,878.97 Billion Naira and 14,323.20 Billion Naira. Meanwhile, if non-oil revenue increases annually by 15 percent, using 2014 as base year, the target could be achieved in 2025 (11 years), but it would take non-oil exports annual increase of 18 percent to hit the target in 2030 (26 years). It is thus suggested that, while the current government revenue mobilization and strategies be maintained, the government efforts on export promotions vis-à-vis non-oil diversifications must be more than doubled in order to upturn the oil dependent Nigerian economy to non-oil economic base before the year 2050.

Keywords: International Development; Resource /Energy Economics and Policy (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.22004/ag.econ.285006

Access Statistics for this article

More articles in African Journal of Economic Review from African Journal of Economic Review
Bibliographic data for series maintained by AgEcon Search ().

Page updated 2021-01-16
Handle: RePEc:ags:afjecr:285006