DETERMINANTS OF SUSTAINABLE DEVELOPMENT IN NIGERIA

Abstract

This study explored the determinants of sustainable development in Nigeria from 1981 to 2022, using the Adjusted Net Savings Rate (ANS) as a proxy for sustainable development and examining variables such as GDP per capita, total natural rent, unemployment rate, inflation rate, and terms of trade. To analyze the data, the study employed Fully Modified Ordinary Least Squares (FMOLS) and Granger Causality tests to identify determinants and causality directions among the variables. The findings highlighted a sustained long-term relationship between these factors, with GDP per capita and total natural rents emerging as key determinants of sustainable development. In contrast, the inflation rate, terms of trade, and unemployment rate were found to have no significant impact. The results also revealed bidirectional causality between sustainable development and GDP per capita, unidirectional causality between terms of trade and total natural resource revenue with sustainable development, and no causality between unemployment rate and inflation rate with sustainable development. The study recommends promoting economic development alongside increased savings and implementing fiscal policies to reduce public deficits as strategies to enhance sustainable development in Nigeria.