EXPORT AND ECONOMIC GROWTH - A CASUAL RELATIONSHIP APPROACH

This research study was conducted on the exports and economic growth in Nigeria from 1988 and 2023. The methodology used in testing the hypotheses was simple regression where the current accounts and capital accounts balances were the determining variables varying the magnitude and direction of economic growth proxied by GDP at current account balances. The findings indicated that for the first hypothesis, current account balances had a positive but not significant effect on the economic growth hence the null hypothesis was rejected. In the second hypothesis the null hypothesis was also rejected since there was evidence of a positive and not significant impact on capital accounts on economic growth .In conclusion, Nigeria’s economy is heavily dependent on crude oil for decades and the fact that it is dependent on imports including refined crude oil has further exacerbated its balance of payment causing currency depreciation and lower foreign currency reserves and increased debts. Okore and Onoh (2013) in their study of the impact of capital account liberalization in Nigeria’s economic growth concluded a negative and non-significant impact. This sad state of affairs coupled with policy inconsistencies and corruption have further compounded our foreign currency woes leaving the economy vulnerable to shocks in oil prices. The government should pay more attention to diversifying away from oil to other viable sectors including the agricultural sector. With abundant natural resources, mineral deposits, fertile land and enormous human capital that Nigeria has a wide range of incentives to diversify its economy. Macro-economic stability and supportive regulatory and institutional frameworks are key prerequisites for economic government by insulating the economy from the impact of oil price volatility is necessary to lay a sound foundation for economic diversification. The public sector should enable, not compete with, the private sector to support economic diversification.