EFFECTS OF TELECOMMUNICATION AND SOLID MINERALS REVENUES ON ECONOMIC GROWTH IN NIGERIA

Abstract

This study investigates the effects of telecommunication and Solid Minerals Revenues on Economic Growth in Nigeria. The study used ARDL methodology to model the relationship between solid minerals and telecommunications revenues on Economic growth in Nigeria. The time series data used to test the study’s hypotheses were collected from the Central Bank of Nigeria Statistical Bulletin, the NBS and various online sources for the periods 1986 - 2022. The techniques of unit root, cointegration and granger causality were applied on the data collected (RGDP, SMR, TSR, and TIN) and the results shows the data have no unit root and are all cointegrated with economic growth of Nigeria in the long run. The granger causality result shows a bidirectional causality relationship between solid mineral revenue (SMR) and economic growth of Nigeria (proxied by RGDP) and unidirectional causality between telecommunication sector revenue (TSR) and RGDP within the study’s period. The study used regression analysis as a tool to show how SMR, TSR and TIN affects economic growth in Nigeria. The result of the ARDL regression performed showed an R2 of 0.97 which indicates the model’s goodness of fit. The ARDL regression result indicates that SMR and TSR are statistically significant and positive in their effects on economic growth in Nigeria, and while TIN indicate a positive effect on economic growth (RGDP) of Nigeria between the years 1986 – 2022, it was not statistically significant. The study concludes that SMR, TSR and TIN have a positive effect on economic growth in Nigeria during the period under review. Based on this conclusion, the study recommends, increase budgetary allocation to the mining sector, increase investment in the telecom infrastructure and enhancing the telecom sector regulatory framework to optimize performance and increase revenues drive from the sector.