Revenue Generation in Nigeria: Diversifying from Primary Sectors to Non-Primary Sectors
Revenue Generation in Nigeria: Diversifying from Primary Sectors to Non-Primary Sectors

Summary/Abstract: This study tried to identify non-primary sectors as an alternative sector for revenue generation in Nigeria. The Nigerian economy over the years had anchored only on primary sectors for revenue generation, neglecting the non-primary sectors. Studies had shown that there is need to diversify the economy away from oil and expand its revenue base given the volatile nature of the prices of the primary sectors products in the world market. Applying econometrics analysis, specifically Vector Autoregression (VAR) estimate and subjecting the estimate to various diagnostic test, alongside ascertaining the order of integration of the variables and their cointegration status, the study revealed that there is no causal relationship between non-primary sectors and revenue. The implication is that non-primary sectors had not contributed to revenue in Nigeria. The potentials in non-primary sectors had not been explored for revenue generation and revenue generated from crude oil sales had also not been invested in these sectors. The study therefore identified the non-primary sector as an alternative source of revenue generation. It was recommended among others that a long-term development plan be made to achieve the set goal of harnessing the potentials in the non-primary sectors.

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