Resource governance: Does abundance of resources guarantee socioeconomic development in Nigeria?

This study aims to assess how resource governance affects socioeconomic development in Nigeria. Using the multivariate regression technique, a statistical analysis system involving the dependent variable and independent variables, secondary data was adopted for this empirical investigation and were sourced from the World Bank’s World Development Indicators (WDI), the United Nations Development Program (UNDP) and the Central Bank of Nigeria Statistical Bulletin. The dataset spans from the first half of 2003 to the second half of 2022. The main analytical technique employed in this study is the Dynamic Ordinary Least Squares (DOLS) regression model, a systematic and effective method of estimating variables that do not change over time, otherwise known as stationary time series data. Empirical findings indicate that government effectiveness significantly negatively impacts socioeconomic development (proxied by the Human Development Index), while the Rule of Law positively and significantly impacts HDI. Furthermore, oil revenue exhibits a negative but insignificant impact on HDI, while Foreign Direct Investment has a significant negative impact on HDI. The findings of this study align with the Resource Curse Theory which states that countries with abundant natural resources tend to experience economic downturns as a result of high dependence on their natural resources. To address these issues, this study recommends that the government should implement sustainable and equitable management policies that ensure the responsible use of natural resources in Nigeria by embracing good governance, accountability, transparency, and ethical leadership to enhance capacity to address socioeconomic challenges.