Oil-Based Revenue and the Human Development Index in Nigeria

Abstract

The research investigates how oil revenue affects Nigeria's Human Development Index from 1999 to 2024 by examining three main HDI factors which include per capita income and health results and educational funding. Nigeria needs to comprehend how its oil wealth contributes to human development because the country depends on oil revenue which generates more than 90 percent of its export income and 60 percent of its government funds. The study fills existing research gaps by showing that HDI assessments need to consider multiple dimensions rather than using economic measures which include GDP and poverty rates. The research uses an ARDL model to analyze time-series data from Central Bank of Nigeria and UNDP and WHO and UNESCO because the existing research lacks modern econometric methods and uses outdated information. The study demonstrates that oil revenue has a positive and significant impact on both per capita income and total HDI but it does not boost healthcare spending or educational budgets. The mixed effect demonstrates how resource management runs inefficiently while some regions receive less resources, which confirms certain elements of Resource Curse theory. The recommendations call on policymakers to enhance their fiscal distribution processes through improved transparency while they should increase their health and education investments and implement strategies to diversify their economic activities. The research deepens knowledge about how oil revenue affects human development in Nigeria through its use of current data and strong modeling techniques to study oil revenue effects. The study provides essential information which helps to combat the resource curse while supporting balanced economic development.