International Balance of Payment and Economic Growth in Nigeria (1990- 2019)

Abstract

This study dwelt on balance of payments and the growth of Nigeria’s economy between the periods 1990 to 2019.The study's main goal was to analyse the impact of the balance of payments on the Nigerian economy's growth. This research relied on secondary data from the Central Bank of Nigeria's statistical bulletin 2019. The dependent variable was real gross domestic product, whereas the independent variables were oil export, non-oil export, oil import, and non-oil import. The variables were found to be stationary at the first difference using a unit root test (1). As a result, the co-integration test was used, which revealed a long-term link between the variables. The paper used the Vector error correction model (VECM) and discovered that in the long run, the short-run disequilibrium can be addressed at a rate of 0.03 percent. As a result, we find that the balance of payment position has little impact on Nigeria's economic growth. As a result, it was suggested, among other things, that Nigeria's federal government implement more export-friendly regulations on balance of payment issues in order to boost economic growth.