Natural Resources, a Curse, or a Blessing to Sustainable Financial Development in Nigeria

(Pages 1735-1744)

Ibrahim Farouq and Zunaidah Sulong*
Faculty of Business and Management, Universiti Sultan Zainal Abidin, Gong Badak Campus, Terengganu, Malaysia.


The current study tries to respond to the concern of whether natural wealth (NRR) is a curse or an opportunity for Nigeria's financial progress. This study also looked at the influence of technology (ICT), renewable energy (REC), and exports (EXP) in financial development (FD) from 1990 to 2022. The empirical findings of the study confirm the existence of a long-term relationship among the variables. This study employs a novel approach of non-autoregressive distributive lag and non-parametric causality test due to the presence of asymmetric data distribution. The empirical evidence indicates that NRR in both the positive and negative shocks is adversely related to FD, thereby confirming the existence of natural resource curse. Moreover, the augmentation of technology, renewable energy and exports contributes positively to the FD. Furthermore, the causality test has been established that there exists a bidirectional causal relationship between FD and the variables. We proposed policy measures accordingly.


Natural resource rents, financial development, resource curse, technology, renewable energy.


F64, F65.

How to Cite:

Ibrahim Farouq and Zunaidah Sulong. Natural Resources, a Curse, or a Blessing to Sustainable Financial Development in Nigeria. [ref]: vol.21.2023. available at:

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