Fiscal Management and Economic Diversification in Oil-Dependent Economies: Lessons from Nigeria, Canada, and Saudi Arabia

Abstract

This study examined the role of fiscal management in transforming oil-dependent economies, with a particular focus on Nigeria’s efforts to implement the Petroleum Industry Act (PIA) 2021 for enhanced transparency and efficiency in the oil sector. The research adopted a qualitative methodology, utilizing in-depth case studies and group discussions with key stakeholders, alongside a comparative analysis of fiscal management and diversification strategies in Canada and Saudi Arabia. The study explored how these nations have managed their resource wealth and diversified their economies. Key findings suggested that while the PIA has the potential to optimize Nigeria’s oil revenues, the country faced persistent challenges in effectively diversifying its economy, particularly in the underdeveloped solid minerals sector. The study concluded by offering actionable recommendations to improve revenue mobilisation, strengthen institutional frameworks, and promote long-term economic sustainability through effective fiscal reforms and diversification strategies.