Structure of Nigerian Federalism, Oil Revenue and Economic Growth
Abstract
There have been divergent views on the impact of earning from natural resources on the economic growth of nations, and how governance impact on the allocation, utilization and dependence on revenue from such resources especially in plural societies. This study set out to determine the impact of oil revenue on Nigeria’s economy taking into account the federal structure of the Nigerian state. We anchored our analysis on the rentier state theory and adopted the ex post facto research design for the study. Secondary data were collected for the period 1981 to 2015 with respect to Nigeria’s oil revenue, gross domestic product (GDP), capital expenditure and external reserve. The study utilized mixed-methods approach of data analysis to subject quantitative data to econometric analysis based on ordinary least square (OLS), while content analysis was adopted to analyze the link between the lopesided federal system and rentier character of the Nigerian state. We found amongst other things that oil revenue has significant positive relationship with GDP and capital expenditure indicating the presence of ‘Dutch Disease’. We found that the imbalance in Nigeria’s federal structure undermines efficient revenue mobilization and allocation, and reinforces rentierism. On the basis of our findings, we conclude that the dependence of the economy on oil revenue would have adverse effect on the economy if there is any drop in oil revenue. We recommended inter alia that Nigerian government should restructure the federal system by granting more political and economic autonomy to the federating units (i.e. the states). More so, the country should embrace diversification of the economy in view of dwindling oil revenue.References
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Armstrong, M. (2006) Human Resources Management and Practice, Ohio Philadelphia.
Aubrey, D. (2006) Performance Management Changing Behavior That Drives Organizational Effectiveness. 4th Edition: McGraw-Hill.
Bevan, S., Barber, L. and Robins, D. (1997) Keeping the Best: A Practical Guide to retaining Key Employees, Brighton, Institute for Employment, November.
Boyd, B.B. (1984) Management Minded Supervision, New York McGraw Hill Books Company.
Busch, S. and Houston, M.S. (1985) Marketing Strategic Foundations Homewood Illinois: Richard D. Irwin Inc.
Choo, W.C. (2001) “Environmental Scanning as Information Seeking and Organizational Learning” Information Research: (17)1.
Certo, S.C. (1992) Modern Management Quality, Ethics and Global Environment, Boston: Allyn Bacon.
Dauda, Y.A. (2010) “Technological Innovation and organizational Performance: Employee Relations Strategies” Nigerian Journal of Industries Vol. II
Dauda, Y.A. (2011) “Technological Change and Employee Performance in Selected Manufacturing Industry in Lagos State of Nigeria” Australian Journal of Business and Management Research: 1(5).
Deklerk, M. (2007) “Healing Emotional Trauma in Organization An Organization Development”. Framework and Case Study Organization Development Journal: 2(25).
Ezeh, J.A. and Onodugo, V.A. (2002) Business Policy and Strategic Management: Issues and Trends. Enugu: Kinsman Publishers.
Ezezue, B. O. (2010)” Evaluating the Impact of performance Management on Employees” The Journal of Management Research, 5(1).
Ezigbo, C.A. (2011) Advanced Management Theory and Application. Enugu: Immaculate Publication Ltd.
Gagnon, V.C and Dragon J. (1995) “The Impact of Technology on Organizational Performance” Optimum, the Journal of Public Sector Management: 28(1).
Griffin, W.G. (1996) Management, Boston: Houghton Mifflin Company.
Hawkins, J. M. (1995) Oxford Mini Reference Dictionary. Oxford University Press.
Hicks, H.G. and Gullett, C.R. (1981) Management, (4th Edition). McGraw-Hill.
Hitt, M.A. (2000) The New Frontier: “Transformation of Management for the New Millennium” Journal of Organization Dynamics: Elsevier Science Reprinted
Imaga, E.U.L. and Ewurum, U.J.F. (2000) Business Management Topics Enugu: Oktek publishers.
Imaga, E.U.L. (2000) A manual of Corporate Planning and Strategic Business Policy. (2nd Edition). Enugu Rhyce Kerex Printers.
Imaga, E. U. L. (2003) Comparative Management System: Nigeria and some Selected Countries. Enugu. Rhyce Kerex Publisher.
Kaplan, R.S. and Norton, D.P. (1996) “Using the Balance Scorecard as a Strategic Management System”. Harvard Business Review, 74(1).
Kazmi, A. (2005) Business Policy and Strategic Management. New Delhi, Tate. McGraw-Hill.
Khalil, T. (2000) Management of Technology. The key to Competitiveness And Wealth Creation: McGrawHill.
Kinear, T. and Bernhardt, K. (1986) Principles of Marketing. Glenview, Illinois: Scott, Foreman, and Company.
Koontz, H. and O’ Donnell, C. (1976) Management: A Systems and Contingency Analysis of Management Function, USA: McGraw-Hill Inc.
Koontz, H. O’Donnell, C and Weihrich, H. (1981) Management, London McGraw- Hill.
Kubber, C.E. (1977) Preparing Managers for Progressive Technology in Management Development in Nigeria: Challenges of Indigenization.
Kurt, L. (1958) Group Decision and Social Change. New York HoIt, Rinehart and Winston.
Lynch, R. (1997) Corporate Strategy, London Pitman Publishing.
Markie, B. (2008), “Organization Performance Management in a Government Context”. Scottish Government Social Research, Edinburgh or www.scotland.gov.uk/socialresearch.
March, J.G. and Sutton, R.I. (1997) Organization Performance as a Dependent Variable. Crossroads Problems in Studies of Performance. California Berkeley.
Mayor, A. (2001) The Human Value of The Enterprise. Valuing People as Assets. London, Nicholas Brealey.
Mintzberg, H. (1981) The Nature of Managerial Work, New York, Harper And Row
Negrophone, N. (2000) “Will Everything be Digital”, The Future of Technology USA Time Magazine, July.
Nnadi, C. (2009) “Environmental Factors that Impact on the Performance of SMES in Nigeria”. Nigeria Journal of Management Research 4(3).
Olakunori, O.K and Ejionueme, N.G. (1997) Introduction to Marketing Enugu. Joen Associates.
Onwuchekwa, C.I. (1993) Management Theory and Organizational Analysis: A Contingency Theory Approach. Enugu: Ohio (Nigeria) Enterprise.
Osaze, B.E. and Anao, A.R (1989). Management Finance. Benin City: Uniben Press.
Porras, J.I. and Silvers (1999) “Organizational Development and Transformation”. Annual Review of Psychology: 4(251-78).
Richard, L.P. (2009) “Organizational Performance: Towards Methodological Best Practice”. Journal of Management.
Shelerkar, S. A. (1978) Business Planning and Policy. Himalayan Publishing House.
Slater, S.F. and Narver (2000) “The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication”. Journal of Business Research.
Sullivan, R. (2010) Practicing organizational Development: A Guide for Learning Change, Jossey Bass 48(69-73).
Tate, E.C. and Taylor, M.L (1983) Business Policy, Administrative, Strategic And Contingency Issues, Georgetown. Irwin Dorsey Limited.
Tetenbaum, J.J. (1998) “Shifting Paradigms: From Newton to Chaos” Journal of Organization Dynamics: Elsevier Science Printers.
Thierauf, R.J.; Klekamp, R.C. and Geeding, D.W. (1977) Management Principles and Practices. A Contingency and Questionnaire Approach, New York, John Willey and Sons, Inc.
Thomas, P.S. (1974) “Environmental Analysis for Corporate Planning” Business Horizon. October.
Thompson, A.A. and Strickland, A.J. (1980) Strategic Formulation and Implementation. Dallas Business Publication.
Ugbam, O.C. (2011) The Core Function of Human Resources Management Enugu: Chirol Publishers.
Unamka, P.C. and Ewurum, U.J.F. (1995) Business Management Topics. 2 Enugu: Oktek Publishers.
Utterback, J. (1994) Mastering the Dynamic of Innovation. Poston M.A Harvard Business School Press.
Published
2016-06-01
How to Cite
UGWU, James Ike; OKOLI, Chukwuma Rowland.
Structure of Nigerian Federalism, Oil Revenue and Economic Growth.
GOUNI Journal of Management and Social Sciences, [S.l.], v. 4, n. 1, p. 128-144, june 2016.
ISSN 2550-7265. Available at: <http://journal.gouni.edu.ng/index.php/fmss/article/view/18>. Date accessed: 14 may 2018.
Issue
Section
Articles
Keywords
Oil Revenue; Federalism; Economic Growth; Rentierism; Federal Structure
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