Poverty Incidence in Nigeria: The Centrality of Sustainable Natural Resource Management

In attempting to achieve the main objective of the study, annual time series data from 1984 to 2016 are employed. This entails the period of both high and low commodity prices in the global markets. The scope seems sufficient to have holistic coverage of the effect of natural resource sector on poverty incidence. Accordingly, three natural resources indicators comprising non-oil rents (% of GDP), oil rents (% of GDP) and total natural resource rents (% of GDP) are used, while poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) represents the poverty measure. This indicator of poverty has been identified as most appropriate for capturing poverty level in an economy. The analysis is conducted with the use of Dynamic Least Squares (DOLS), Fully Modified Least Squares (FMOLS) and Canonical Cointegrating Regression (CCR), while the causal link is examined using Vector Error Correction Model (VECM) approach.