ASSESSING THE IMPACT OF OVER DEPENDENCE ON OIL REVENUE TO NIGERIA ECONOMY

ABSTRACT

The research is on Assessing the Impact of Overdependence on Oil Revenue to Nigeria Economy. The main objective of this study is to assess the impact of overdependence on oil revenue to Nigeria economy. Data for this research were obtained from both primary and secondary sources. The questionnaire served as the main instrument for data collection. Interview was also conducted so as to obtain more data. Data analyses were done through the use of tabular presentation and percentages. Hypotheses were tested through Chi-square (X²).
The major findings of this study are as follows:

1. Overdependence on oil revenue has more positive impact than negative impact on Nigeria’s economic development.
2. Agriculture, Tourism, Taxation & Solid minerals are factors that could minimize Nigeria’s overdependence on oil revenue.

On the basis of the above findings, the study concludes that Nigerian economic growth is highly depended on the oil revenue. Hence, if there is a glut and fall in oil price in international market, it may be a great disaster on the economy and to the citizenry of the country.
From the findings of this study, the following are recommendations:

1. The Nigerian government should focus on the need for diversification into other sources of revenue in order not to be affected by fall of oil price in the international market.
2. The government should develop other sectors of the economy such as agricultural sector, and industrial sector by providing incentives such as tax concession, provision of facilities needed by these sectors in order to boost more production.