Beyond Oil Dependency: Evaluating Revenue Diversification Strategies for Poverty Reduction in Nigeria.

Abstract

Nigeria's economic development over the past six decades has been largely driven by heavy reliance on crude oil, which determines export income and government revenue. This dependence on a single resource has created structural vulnerabilities, such as exposure to distortions from global oil price fluctuations, weak industrial infrastructure, widespread unemployment and poverty. Using the Structural Transformation Theory and a time series research approach, this study examines the link between poverty reduction and revenue diversification policies in Nigeria, particularly in agriculture, tourism, and technology sectors. The research methods included qualitative documentary and content analysis of secondary data from both national and international sources. Results show that while oil revenues have historically funded fiscal needs, sectors like agriculture and technology have significant potential to generate jobs, increase incomes, and promote national development when properly supported. The research also identifies gaps in governance, infrastructure, and financing as major barriers to successful diversification. The study underscores the importance of strategic investment in non-oil industries, maintaining macroeconomic stability, and implementing institutional reforms for fostering inclusive and sustainable growth.