Natural Resources and Natural Gas Rent on Economic performance in Nigeria.

The study aims to investigate the effect of natural resources and natural gas rent on economic performance in Nigeria.Data from 2000 to 2024 was used in the study. The results of Model estimation, which examines the short-run dynamics of natural resource rents on economic performance in Nigeria using the Error Correction Model (ECM), reveal an important interaction between resource endowments and growth outcomes that encapsulates the paradox of resource-driven development. The natural resource rent exhibits a positive and statistically significant effect, the mineral resource rent is positive and significant, oil resource rent has a negative and statistically significant effect, natural gas rent is positive and significant. The error correction term (ECM) bears the expected negative and significant confirming the presence of a valid long-run equilibrium relationship among the variables. Essentially, these results convey that while aggregate natural resource exploitation contributes positively to short-term growth, the specific role of oil remains detrimental, reinforcing the paradox that Nigeria’s principal source of revenue simultaneously undermines sustainable development. Based on these findings the study recommended that; government strengthen the transparency framework governing extractive industries through full public disclosure of all payments, receipts, and contracts across all tiers of government, the National Assembly should enact a fiscal rule mandating that a fixed proportion of oil and gas revenues be automatically invested in a sovereign wealth or future generations fund. Such a fund should be ring-fenced for financing long-term developmental assets, particularly in infrastructure, education, and healthcare, thereby converting non-renewable resource income into reproducible capital that supports intergenerational equity and macroeconomic stability.