Impact of Oil and Gas Revenue on Poverty in Nigeria
DOI:
https://doi.org/10.70861/ujed20250202017Keywords:
Autoregressive Distributed Lag, Oil and Gas Revenue, Poverty, Human Capital InvestmentAbstract
This paper investigated the impact of oil and gas revenue on poverty in Nigeria using annual time series data spanned from 1981 to 2022. Firstly, unit root test was conducted and the result shows that all the variables were stationary. The study employed the autoregressive and distributed lag (ARDL) Model of estimation. The result shows that, oil and gas revenue has negative and significant impact on poverty in short run Meaning that if the oil revenue is increase, there will be an increase in income and consumption of the people through government intervention on poverty alleviation programs which would ultimately reduce poverty in the short run. While the long run result indicates that, oil revenue has a positive and significance relationships with poverty. Meaning that, increase in oil revenue also increases in poverty which may be as a result of corruption and mismanagement of oil wealth. The study recommends that Nigerian government should implements the overall comprehensive approach that addresses the economic, social, and environmental dimension of poverty. The approaches such as economic empowerment, social protection, investing in human capital, environmental sustainability and good governance are very essential in poverty reduction strategy.
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