THE LONG-RUN STABILITY OF NIGERIAN ECONOMIC STRUCTURE

Abstract

Nigerian economy is structurally defective because of its dependent on oil. Issues such as inadequate infrastructures, obstacles to smooth trade, unstable economic policies distort the structure of the economy and translate to economic instability. Sustained economic growth is critical to economic stability which this study was aimed to analyze. Secondary data was used for the study which was obtained from Central Bank of Nigeria (CBN) statistical bulletin and was analyzed using inferential statistics. Results revealed the existence of stationary relationship between the selected economic sectors at 5% level of significance. The negative coefficient (-0.047895) of NGDP indicated the existence of long-run relationship between the Nigerian Gross Domestic Product (NGDP) and the selected economic sectors and the Error correction model (ECM) value of -0.3414224 connoted long run instability in the economic structure. The result also revealed agricultural and oil sectors as the drivers of the Nigerian economy.