Obasi Friday Akputa
Research Brief
Effects of Macroeconomic And Environmental Factors on Renewable Natural Resources Degradation in Nigeria
Introduction:
Renewable natural resources (RNRs) constitute an essential foundation for ecological stability, livelihood sustainability, and economic development in Nigeria. Renewable natural resources are environmental assets that naturally replenish themselves over time through biological reproduction or recurring physical cycles. As a country endowed with abundant fertile land, forests, inland waters, and rich biodiversity, the sustainability of these resources is vital not only for ecological balance but also for economic resilience, food security, and rural livelihoods. These trends are exacerbated by Nigeria’s volatile economy and inadequate environmental governance. Thus, at the heart of this study is the investigation of how macroeconomic indicators interact with environmental variables to shape renewable natural resources outcome in Nigeria.
Materials and method:
The study deployed time series data spanning forty years (1981-2020). Environmental degradation index was generated from three key degradation indicators of soil (Soil organic carbon, deforestation rate, and water stress) using Principal Component Analysis as dependent variable, while data on macroeconomic and environmental variables formed the independent variable. To achieve the objectives of the study, robust analytical tools were employed including: Mann-Kendall trend test, Ridge regression, Autoregressive Distributed lag model, and Vector Error Correction model.
Findings of the study:
Renewable natural resource degradation in Nigeria is a persistent and structurally embedded phenomenon. Land degradation is not driven by overall economic growth but specifically, by Agricultural Value Added channelled through cereal expansion. Also, energy consumption pattern remains predominantly dependent on environmentally harmful and non-renewable energy sources. Thus, Nigeria is at the fringe of ecological collapse in the absence of strong policy instrument.
Recommendations:
The study therefore recommends that Federal Government of Nigeria should mandate all State-level urban master plans to curb urban sprawl into high yield cropland and loss of land to cities; prioritize Maize-Cowpea value chain for irrigated yield upgrade to reduce horizontal expansion; promote tax waivers/rebate for farms that adopt conservation tillage, tying macroeconomic incentives to measurable soil health outcomes, and ensure increased investment in clean, affordable, and alternative energy sources especially in the rural areas.
