Decomposing of Natural Resources: Empirical Study on Its Impact on Sustainable Economic Development in Nigeria

Abstract

The study examined the impact of natural resources on economic development in Nigeria. Secondary data was used which was sourced from the central bank of Nigeria and other relevant publications. Data were analyzed using some Statistical tools; Descriptive analysis, trend analysis, unit root test co-integration test, long and short-run analysis, and post-estimation test. The result of the long-run analysis revealed that gas has a positive significant impact on per capita income, while limestone has a significant positive effect at 10%. Petroleum and coal have non- significant impart. In the short- run, petroleum, limestone, coal, and gas have a significant positive impact on per capita income in Nigeria. Based on the finding the paper recommends; government and private sector investment in the extraction of natural resources, the government should give grants and loans to those investing in the production of natural resources and government should enforce laws establishing natural resources and if found in any part of the country, belong to the government irrespective of the region.