NON-OIL EXPORT AND BUSINESS DEVELOPMENT OF NIGERIA (1990-2013)

Author: Ibenegbu Favour Chijioke
Department: Business Administration
Affiliation: Nnamdi Azikiwe University Awka

This study examined Non-oil export and business development of Nigeria between 1990 and 2013. Specific objectives are centered on determining the value added by management Agricultural sector to export development in Nigeria, examining the impact of Solid minerals sector on export development and also to determine the managerial contributions of transport sector to export development. Models were specified in line with objectives. The methodology adopted was ordinary least square technique with the use of secondary data sourced from Central Bank of Nigeria,Federal Office of Statistics and National Bureau of statistics for the period of 1990-2013. This is to test the functional relationship between the variables in the model. Export was regressed on Agriculture with particular reference to forestry, fishery, livestock and crops. In same vein export was regressed on solid minerals with a focus on coal mining, metal ores, mining and quarrying. The relationship between export and transport sector was also examined by regressing export on Road, Water, Air and Rail transport. The study revealed that forestry, livestock, and crops have positive relationship with export development. This implies that increase in forestry, livestock and crops production will lead to subsequent increase in non-oil export development. Fishery has negative impact on non-oil export implying that continuous importation of fish indicates a huge loss of foreign exchange earnings to Nigeria. This is against priori expectations. The regression coefficient of coal mining assumes a negative sign indicating the level of inverse relationship between non-oil export and coal mining while the coefficient of metal ore, mining and quarrying havepositive relationship with non-oil export. This implies that with improvement in non-oil export, metal ore production and mining and quarrying would increase to boost foreign exchange earnings. Water transport has negative relationship with non-oil export while road, air and rail transport have positive relationship with non-oil export. In conclusion, with proper management there would be maximum utilization of the potentialsof disaggregated Agriculture, Solid minerals and transport sectors which would increase share of Non-oil export products in total exports and boost GDP growth through foreign exchange earnings.This study therefore recommends that disaggregated agricultural sector need to be transformed into profitable and sustainable sector with modern agricultural techniques, enhanced technology capable of turning around the non-oil export sector towards business development and economic growth. Likewise, the development of disaggregated solid mineral sector should be driven by an overriding policy aimed at ensuring that mineral production activity is linked to the real sector of the economy in a manner that encourages higher output and productivity. Furthermore, concerted efforts should be made to encourage private sector investments in other means of transportation in order to ensure effective distribution of resources in the real sector.

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