The Impact of Non-Oil Sectors on Economic Growth in Zungeru Local Government Area, Niger State
- Project Research
- 1-5 Chapters
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- Table of Content: Available
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Background of the Study
Nigeria’s economy has historically been heavily reliant on oil, which constitutes a large percentage of government revenue and export earnings. However, the over-dependence on oil has exposed the country to significant economic vulnerabilities, such as price volatility in global oil markets and the negative effects of oil-related environmental degradation. As a result, there has been increasing recognition of the need to diversify the economy by developing non-oil sectors, such as agriculture, manufacturing, services, and trade (Adebayo & Olaniyan, 2024).
In Zungeru Local Government Area, Niger State, the non-oil sectors, particularly agriculture and small-scale manufacturing, play a crucial role in driving local economic growth. Agriculture, being the backbone of the local economy, provides employment for a majority of the population, while small businesses and trade serve as important drivers of local commerce. This study aims to assess the impact of these non-oil sectors on the economic growth of Zungeru, examining how they contribute to employment generation, income generation, and overall community development.
1.2 Statement of the Problem
Zungeru Local Government Area, like many other parts of Nigeria, has been affected by the national dependency on oil revenue. Despite the presence of non-oil sectors such as agriculture and small-scale manufacturing, there is limited empirical evidence on the specific impact of these sectors on economic growth at the local level. The lack of detailed data on the contributions of these sectors to local development hampers effective policy-making. This study aims to fill this gap by evaluating the impact of non-oil sectors on the economic growth of Zungeru, thereby providing insights for local economic development strategies.
1.3 Objectives of the Study
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To assess the contribution of agriculture to the economic growth of Zungeru.
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To evaluate the role of small-scale manufacturing in generating local employment and income in Zungeru.
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To explore the potential of other non-oil sectors, such as trade and services, in fostering economic development in Zungeru.
1.4 Research Questions
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What is the contribution of agriculture to the economic growth of Zungeru?
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How does small-scale manufacturing contribute to employment generation and local income in Zungeru?
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What role do other non-oil sectors, such as trade and services, play in the economic development of Zungeru?
1.5 Research Hypotheses
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Agriculture significantly contributes to the economic growth of Zungeru.
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Small-scale manufacturing plays a crucial role in generating local employment and income in Zungeru.
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Other non-oil sectors, such as trade and services, have a positive impact on the economic development of Zungeru.
1.6 Significance of the Study
This study is significant because it will contribute to the understanding of how non-oil sectors can drive local economic growth, particularly in regions like Zungeru that are highly dependent on agriculture and small businesses. The findings will provide valuable information for policymakers and local government officials looking to diversify the economy and reduce dependence on oil revenues. Additionally, the study will help guide future investment in non-oil sectors to stimulate sustainable economic development in Zungeru.
1.7 Scope and Limitations of the Study
The study will focus on Zungeru Local Government Area in Niger State and will assess the impact of non-oil sectors on the local economy within the past five years. It will not explore broader regional or national economic trends. Limitations of the study include potential challenges in gathering comprehensive data on informal businesses and the difficulty in measuring the direct economic impact of agriculture and manufacturing in the absence of formal data collection.
1.8 Operational Definition of Terms
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Non-Oil Sectors: Economic sectors that do not directly involve the extraction or processing of oil, including agriculture, manufacturing, services, and trade.
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Economic Growth: The increase in the production of goods and services in a region, leading to a rise in income levels and living standards.
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Small-Scale Manufacturing: The production of goods on a relatively small scale, typically characterized by low capital investment and limited technological input.
