Is Nigeria’s resource curse reversible?

Examining the mediating effects of technological advancement and institutional quality

Authors

  • Osamede Success Abusomwan University of Benin
  • Beatrice Omo-Ikirodah University of Benin
  • Stanley Osagie Idemudia University of Benin

Abstract

Nigeria’s persistent dependence on natural resources continues to fuel concerns about the existence of the resource curse despite several economic and institutional reforms. This study investigated whether the resource curse in Nigeria is reversible by examining the roles of technological advancement and institutional quality in the nexus between natural resource dependence and economic growth. Annual data spanning 1996-2024 were sourced from the World Development Indicators, Worldwide Governance Indicators, and the Central Bank of Nigeria Statistical Bulletin. The study employed the Augmented Dickey-Fuller unit root test and the Johansen cointegration technique to determine the time-series properties and long-run relationships among the variables. Long-run effects were estimated using the Dynamic Ordinary Least Squares method, while diagnostic tests were conducted to ensure model reliability. The results showed that natural resource dependence exerts a negative effect on economic growth, confirming the persistence of the resource curse in Nigeria. Although institutional quality and technological advancement positively influenced economic growth, neither was sufficient to mitigate the adverse impact of resource dependence. The study recommends stronger institutions, better management of resource revenues, greater technological innovation, and accelerated economic diversification to foster sustainable growth.

Key words: Dynamic Ordinary Least Squares; economic growth; institutional quality; Resource curse; technological advancement.

Author Biographies

Osamede Success Abusomwan, University of Benin

Dr. Osamede Success Abusomwan is an Associate Professor in the Department of Economics at the University of Benin, Benin City, Edo State, Nigeria. His research interests include monetary economics and financial economics.

Beatrice Omo-Ikirodah, University of Benin

Mrs. Beatrice Omo-Ikirodah is a lecturer in the Department of Economics at the University of Benin, Benin City, Edo State, Nigeria. Her research areas are development economics and health economics.

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Published

24.08.2026

How to Cite

Abusomwan, O. S., Omo-Ikirodah, B., & Idemudia, S. O. (2026). Is Nigeria’s resource curse reversible? : Examining the mediating effects of technological advancement and institutional quality. Ecoforum Journal, 15(3). Retrieved from https://ecoforumjournal.ro/index.php/eco/article/view/3366

Issue

Vol. 15 No. 3 (2026)

Section

Business Economics, Sustainable Development, Public Administration and Law

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