TRADE AND INVESTMENT DYNAMICS IN NIGERIA (1981–2012): ASSESSING THE IMPACT ON ECONOMIC GROWTH

Abstract

Since the 1970s, Nigeria has heavily relied on its oil sector, leading to the neglect of other vital sectors like agriculture. The volatile nature of the oil market has underscored the urgency for diversification to bolster the economy. This paper explores the imperative for Nigeria to diversify its economic base, focusing on the potential benefits of developing the non-oil sector. Through a comprehensive analysis of historical trends and contemporary economic challenges, this study elucidates the necessity for a robust non-oil sector to mitigate the risks associated with oil dependency and foster sustainable economic growth. By examining the socio-economic impact of overreliance on oil and the consequent neglect of sectors like agriculture, the paper underscores the need for strategic policies to revitalize and prioritize non-oil sectors. Additionally, the study evaluates the challenges hindering diversification efforts, such as infrastructure deficits, policy inconsistencies, and institutional weaknesses. Furthermore, it proposes actionable strategies to promote diversification, including investment in infrastructure, capacity building, and policy reforms. The findings emphasize the potential of the non-oil sector to drive economic transformation, create employment opportunities, and enhance food security. Ultimately, this paper advocates for a multi-faceted approach involving government intervention, private sector engagement, and international cooperation to unlock the full potential of Nigeria's non-oil sectors and foster inclusive and sustainable development