Impact of Economic Diversification and Revenue Generation in Nigeria

Ojima D

Published on: 2024-07-02

Abstract

Diversification of the economy has been identified as one sure way to boost the economy by generating revenue, reduce the huge debt profile, and create employment opportunities amongst other economic advantages. Economic diversification being processes of investing in other sectors of the economy as opposed to dependence on a single revenue source will bring Nigeria out of its economic woes. The study examined the implication of diversification in Nigeria from 1993-2023, explained the concept, considers some theories and empirical literatures as bedrock of the research. The models of the study identified some explanatory variables whereby the ordinary least squares were carried out. The study also considered Unit root, Granger casuality test, Bound tests and ARDL estimation to determine the short and long run association between the dependent and variables selected in the model. Findings of the study show long run link between government revenue generation and the variables of the study. It therefore, recommended government deliberate investment into agricultural, manufacturing and service sectors, review the tax policies to attract investment and increased the sectoral allocations.