No abstract

Since the “Dutch disease”, more studies are establishing a negative relationship between natural resource abundance and a nation’s economic performance that have termed a ‘resource curse’. Nigeria being of such countries with abundant natural resources this study sought to examine the impact of natural resources abundance on the performance of selected macroeconomic development. Annual time series data from 1981-2021 about the variables were obtained from various sources like Central Bank of Nigeria statistical bulletin, National Bureau of Statistics and World Bank data base were used for the analysis. The Autoregressive Distributed Lag (ARDL) model was adopted. The results obtained indicate that natural resource abundance (in terms of crude oil and natural gas revenue, mineral rent, oil rent and solid mineral revenue) have: 1) mix and unfavourable effect on balance of payments in both short and long run; 2) a positive effect on income per head in the short run and long run, but with the short-run effect different from that of the long run; and 3) only long-run positive effect on unemployment rate, with crude oil and natural gas revenue having a negative effect. Thus, natural resources considered have significant effect on gross domestic product per capital but do not have the desired effect on balance of payments and unemployment rate. This led to the conclusion that Nigeria’s abundant natural resource have only partial impart on macroeconomic performance. These findings will help to drive policy towards optimal natural resource utilization for enhanced macroeconomic performance as suggested.

The study investigated the effect of external economic shocks on monetary policy tools in Nigeria for a period of 1990 to 2020. External economic shocks were measured though their passthrough variables of exchange rate (EXR), foreign direct investment (FDI), external debt (ED), and trade openness (TO); while monetary policy tools were considered in terms of broad money supply (M2), monetary policy rate (MPR) and cash reserve ratio (CRR). The Zivot and Andrews test and the Bayer and Hanck combined cointegration tests were employed to to check for stationarity (with structural breaks) and cointegration among the variables. We then applied the autoregressive distributed lag (ARDL) test to determine the effect of the relationship between the independent variables and the dependent variable. The results of the structural indicated that there are structural breaks accounting for the existence of shocks, while the cointegration test showed that the variables are cointegrated. The ARDL test disclosed that external economic shocks (through EXR, FDI, ED, and TO) have significant effect on monetary policy variables. This study therefore recommends that the monetary authorities should safeguard the monetary operations in Nigeria from external economic mishaps that have spillover to the country by making allowance for the external economic shocks in setting these tools and putting in place mechanisms that can make these tools resilient and resistant to the shocks

No abstract

Since the “Dutch disease”, more studies are establishing a negative relationship between natural resource abundance and a nation’s economic performance that have termed a ‘resource curse’. Nigeria being of such countries with abundant natural resources this study sought to examine the impact of natural resources abundance on the performance of selected macroeconomic development. Annual time series data from 1981–2021 about the variables were obtained from various sources like Central Bank of Nigeria statistical bulletin, National Bureau of Statistics and World Bank data base were used for the analysis. The Autoregressive Distributed Lag (ARDL) model was adopted. The results obtained indicate that natural resource abundance (in terms of crude oil and natural gas revenue, mineral rent, oil rent and solid mineral revenue) have: 1) mix and unfavourable effect on balance of payments in both short and long run; 2) a positive effect on income per head in the short run and long run, but with the short-run effect different from that of the long run; and 3) only long-run positive effect on unemployment rate, with crude oil and natural gas revenue having a negative effect. Thus, natural resources considered have significant effect on gross domestic product per capital but do not have the desired effect on balance of payments and unemployment rate. This le to the conclusion that Nigeria’s abundant natural resource have only partial impart on macroeconomic performance. These findings will help to drive policy towards optimal natural resource utilization for enhanced macroeconomic performance as suggested.Jel Codes: E24, O11, O13, Q32, Q33