Nigeria is fast losing its favourite oil export destinations to the united states u. The oil terminal dues act is relevant to the export of crude oil. It provides for the levying and payment of terminal dues by vessels evacuating crude oil at terminals in nigeria. Thus, the government should adopt and implement trade policies that are capable of sustaining nonoil sector growth in nigeria. Nigeria has recorded a significant rise in its nonoil export, with agricultural goods increasing the countrys foreign exchange earnings. Without oil export, nigerias export to the us was less than that of lesotho a nation. The mono economy nature of nigeria and the need to diversify the economy form part of the motivation for the study. Get free research paper on impact of exchange rate policy on nonoil exports in the nigerian economy 19992014 project topics and materials in nigeria. The study investigates the relationship between diversification of nonoil export. Meanwhile, sales fell sharply for agricultural goods 38. The decline in price of oil in recent years has led to a decrease in the funds available for distribution to the three tiers of government in nigeria. Introduction as one of the most efficient tools for growth and development, export promotion policy has been taken by many countries since 1970. Thus commodity market instability, as well as unfavourable terms of trade were experienced to different degrees by nigeria.
Export promotion council in the promotion of nonoil exportable products. As of 2000, oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue, as well as generating more than 14% of its gdp. Trends of oil, nonoil and total exports in nigeria, 1986 2008 however, one striking feature of the export volume in nigeria during the study period was the dominance of oil. While export promotion policies were primarily intended to move nigeria away from a dependence on primary commodities, cocoa beans, rubber and palm kernel provide more than 70 per cent of nigerias nonoil export earnings. Nigerias foreign exchange is heavily dependent on the oil sector, which accounts for a majority of its export revenues. Globalization and nonoil export performance in nigeria. External links to other internet sites should not be construed as an endorsement of the views or privacy policies contained therein. Besides the eeg, the export adjustment scheme eas, export processing zone, the nigeria import export bank nexim, among other instruments have been put in place to ensure a hitchfree export trade. The role of exports in economic growth and the relationship. Exports from nigeria soared 48 percent yearonyear to ngn 1,396 million in december of 2019, driven by shipments of manufactured products 1180 percent and crude oil 14.
Data on gross domestic product, oil export and non oil export were used. Both oil and non oil exports have no significant impact on economic growth in nigeria. This impressive performance in terms of gdp growth rate of 6. For nigeria to experience gradual transformation towards increasing reliance on traditional nonoil and manufactured export, we recommended that there should be a change in the objectives and. Non oil exports are commonly agriculture based, with no affiliation with the exhaustible dominant commodity crude oil. Gabrich global is pleased to bring to you the history of the nigerian petroleum industry this week. Exchange rate volatility and nonoil exports in nigeria. The system is an advanced method for the submission and gathering of oil and gas production data, export data and helps to improves the transparency in hydrocarbon accounting in nigeria and the. In general, oil accounted for over 90 per cent of nigerias exports over the period 19862008. Oil price fluctuations and the nigerian economy request pdf.
Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of. Sap, the emphasis was on diversifying nigeria s export base away from oil and increasing non oil foreign exchange earnings. Nigeria is the most populous country in africa and the 8th most populous in the world. Our step by step guide to agro exportation from nigeria to the united states. Data were analysed using descriptive statistics, correlation analysis and regression analysis. The impact of exchange rate on nigeria nonoil exports. Empirical analysis on the impact of oil and nonoil. This report examines the export potential of nigerias principal nonoil sectors, agriculture and manufacturing. The study investigates effect of nonoil export on the economic development of nigeria.
The need for federal, states and local governments to generate adequate revenue from other sources. Year jan feb mar apr may jun jul aug sep oct nov dec. It also provides 95% of foreign exchange earnings, and about 65% of government budgetary revenues nigerias proven oil reserves are estimated by the united states energy information administration eia at between 16 and. Exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. Role of non oil exports in the economic growth of nigeria. Ezeudu 2014 notes that recent proactive efforts from the private sector, export processing free zone scheme and nigeria export and import bank. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. Crude oil was first discovered in commercial quantities in nigeria in 1956, while actual production started in 1958. Adesoji adetunji adenugba, sotubo oluwatimilehin dipo.
Essentially, the results suggest that the exchange rate volatility is only effective in the long run but not in the short run in the case of nigeria. The effect of nonoil components export on the economic growth in nigeria continue to be debated and tested in order for turning around of the nations economic outlook for the future good, by strengthen nonoil export growth and success and also promote a nonoil export culture. Potentials for diversifying nigerias nonoil exports to nontraditional. Now the quite a long tip sheet for exporting from nigeria, but a necessary one. The study used per capita income as proxy for economic development and expressed it as a function of nonoil export volume, trade. Nigeria nonoil export prospects english the world bank. This research focuses on the impact of oil and non oil exports on nigerias economy from 1981 to 2012.
This study investigates the specific impact of the nonoil exports to the growth of nigerian economy using data between 1981 and 2012 the study adopted the. The role of oil and gas in nigerias economy and governance it would be difficult to exaggerate the role of oil in the nigerian economy. Closing its 5year activities in nigeria, it recently held a policy dialogue and an award ceremony, in abuja, with a view to encouraging key plays in the non oil export sector to sustain the. A study of agricultural and mineral resources exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country. Pdf the impact of nonoil export on the nigerian economy. The national bureau of statistics nbs recently reported that nigeria recorded an export rise of 73. Nigerian oil and gas industry and make it more relevant to the sustainable development of the nigerian state report by akin akinsipe 08023173582 the nigerian economy and the relevance of the petroleum industry nigeria. The non oil export stimulation facility nesf was introduced by the central bank of nigeria cbn to diversify the revenue base of the economy and to expedite the growth and development of the non oil export sector. The outcome of the analyses revealed that nigeria nonoil export as some significant contribution on our economic growth. The impact of exchange rate on nigeria nonoil exports hrmars. Pdf the paper was set to examine the relationship between different aspects of service trade and non oil export in nigeria as well as assess the. To achieve the objectives of the programme, the government put in place a number of policy reforms and incentives to encourage the production and export of non oil tradable goods as well as broadening nigeria s export. This is approved for students in accountancy, business, computer science, economics, engineering, arts.
Status of the nigerian oil and gas industry the pib. The facility will help redress the declining export financing and reposition the sector to increase its contribution to. How to boost nonoil export in nigeria the guardian. Oil majors to stay onshore nigeria despite grumbles. The ordinary least square ols was used to estimate the parameters. Effects of nonoil export on the economic development of. The nonoil export stimulation facility esf was established by the central bank of nigeria cbn to diversify the economy away from oil and to expedite the growth and development of the nonoil export sector. Prior to december 2015, crude oil exports were restricted to. Impact of nonoil export on economic growth in nigeria project material. Nigeria crude oil and petroleum products import and export. Uniprojects aim of providing impact of nonoil export on economic growth in nigeria project research material is to reduce the stress of moving from one school library to another all in the name of searching for. Oil and gas transport and storage laws in nigeria lexology. For nigeria to experience gradual transformation towards increasing reliance on traditional non oil and manufactured export, we recommended that there should be a change in the objectives and. Nigeria records rise in nonoil export agro news nigeria.
Impact of nonoil export on economic growth in nigeria. The recent fall in global prices of crude oil triggered a sharp decline in the countrys revenue and foreign exchange earnings. The positive coefficient of the exchange rate variable though not significant suggests that an appreciable depreciation of the exchange rate could lead to increase in non oil exports in nigeria. According to export market analysts, the growth in nonoil exports in the last few years has been enormous. This paper extends the previous empirical studies on the issue. Nonoil exports gets n500bn from central bank of nigeria. The global shale oil and gas boom means there are more exploration opportunities, so it makes financial sense to keep only the most profitable businesses in. Since after the discovery and commercial exploration of oil in nigeria in 1958, the. This study examines effect oil revenue on nonoil export in nigeria for the period. Most of nigerias fdi is directed to the oil and gas sector. D, hcib department of accountingfinance, faculty of management and social sciences, godfrey okoye university, enugu abstract. Since the first oil price shock in 1974, oil has annually produced over 90 percent of nigerias export income. Pdf nonoil exports in the economic growth of nigeria.
Nigeria unserious about nonoil exports vanguard news. Nigeria crude oil and petroleum products import and export 19862010 energy. Non oil export product, economic growth, ordinary least square, diversification, nigeria. Please, sit back and study the below research material carefully. In the 1960s, nigerias export trade was largely dominated by nonoil products such as groundnuts, palm kernel, palm oil, cocoa, rubber, cotton, coffee, copra. Nigeria is the worlds eighth largest exporter of crude oil and no longer sends 43% of its exports to the united states due to the recent shale boom of the us. The stakeholders, who argued that nigeria has the best services companies in the subsaharam africa, however lamented that credit to nonoil export sector has. Nigeria exports of crude oil and petroleum products by. Pdf the nigerian economy has for decades precariously leaned on the fragile leg of crude oil.
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