Effect of Export Expansion Grant on the Growth of Nigeria’s Non-Oil Export

Abstract

This study examines the effects of Export Expansion Grant (EEG) on the growth of Nigeria’s non-oil export.  EEG scheme was introduced in 1986 at a time the government of Nigeria was focussing on diversifying her economy. Thus this paper attempt to analyse the effects of EEG on non-oil exports from 1986 -2015. The study used data set of non-oil export as the dependent variable while EEG, foreign income, gross fixed capital formation and real exchange rate were used as independent variables. Of these variables, growth in non-oil exports, growth in foreign income were stationary at levels. The rest variables were stationary at first difference. The study therefore employed Auto Regressive Distributed lag Model (ARDL) technique due to the mix I(O) and I(I). The paper concludes that EEG has no significant effects on Nigeria’s non-oil exports. The paper recommends extending EEG to producers of domestic products that are yet to be exported. Also, government should diversify activities in the agriculture sector to further export in livestock, horticulture, floriculture, wildlife preservation among others to strengthen diversification agenda in Nigeria.

Keywords: Non-oil Exports  promotion, Export Expansion Grant, Diversification of Nigeria’s Economy

DOI: 10.7176/JESD/10-22-06

Publication date: November 30^th 2019