EFFECT OF PALM OIL PRODUCTION VOLUME ON ECONOMIC GROWTH OF NIGERIA (1980 – 2024)
This study investigated the effect of palm oil production volume on Nigeria’s economic growth during the period 1980 to 2024. The specific objectives are to: Identify the impact of the annual total production volume of palm oil on the GDP of Nigeria; assess the impact of palm oil domestic consumption on Nigeria’s GDP and examine the impact of palm oil prices on the GDP of Nigeria. Result obtained from the error correction mechanism (ECM) revealed that the volume of palm oil production had a positive and not significant impact on Nigeria’s Gross Domestic Product (GDP) in the short run while the effect of palm oil domestic consumption on the GDP was positive and highly significant whereas the prices of palm oil also had a positive and highly significant effect. The conclusion is that Palm oil production volume and price along with consumption contributes positively to the GDP of Nigeria. The analyses show that, palm oil domestic consumption and the price of palm oil have relatively stronger role and quicker transmission mechanism in determining the growth in the economy of Nigeria. The research recommends that government should ensure the promotion of improved oil palm varieties, modern technologies and machines usage so as to support more palm oil production which will aid to ensure Nigeria’s economy growth.
Key words: Economic growth, Nigeria, palm oil price, palm oil domestic consumption, palm oil production volume.
