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The Impact Of Oil Production On Economic Development And Poverty Alleviation

Author

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  • EGBEWOLE Abdulazeez Bunmi

    (University of Ilorin, Ilorin, Nigeria)

  • RABIU Sherifdeen Adebola

    (Kwara State University, Malete, Nigeria)

  • ABDULKAREEM Kehinde Ayomidimeji

    (University of Ilorin, Ilorin, Nigeria)

Abstract

This paper investigates the impact of oil production on economic development and poverty alleviation from 1990 to 2022. As one of Africa’s largest oil producers, Nigeria has witnessed significant economic changes due to its oil wealth; however, this has not translated into equitable growth or substantial poverty reduction. The study aims to analyze the effects of inflation rates, tariffs, and literacy rates on economic development and poverty alleviation. Analytical methods include the Augmented Dickey-Fuller unit root test, cointegration test and First Difference ARDL model. The study reveals that despite generating substantial oil revenues, over 40% of Nigerians live below the poverty line, underscoring the phenomenon of the “resource curse.” Furthermore, it identifies gaps in policy effectiveness, local community engagement, and long-term economic sustainability. By analyzing the relationship between oil production and socio-economic outcomes, this paper calls for targeted policy interventions that prioritize equitable wealth distribution and sustainable development strategies to mitigate poverty in Nigeria. The study emphasizes the need for economic diversification and balanced sectoral development to optimize economic potential and enhance welfare in Nigeria.

Suggested Citation

  • EGBEWOLE Abdulazeez Bunmi & RABIU Sherifdeen Adebola & ABDULKAREEM Kehinde Ayomidimeji, 2024. "The Impact Of Oil Production On Economic Development And Poverty Alleviation," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 16(2), pages 152-167, December.
    • Handle: RePEc:blg:msudev:v:16:y:2024:i:2:p:152-167:n:13
    DOI: https://doi.org/10.54989/msd-2024-0023
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    References listed on IDEAS

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    1. Christiane Baumeister & Lutz Kilian, 2016. "Forty Years of Oil Price Fluctuations: Why the Price of Oil May Still Surprise Us," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 139-160, Winter.
    2. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
    3. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
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