This study analysed the relationship between natural resource endowment, institutional quality, and GDP per capita (GDPPC) in Nigeria from 1996 to 2024. Various tests, including Augmented Dickey-Fuller and Phillips-Perron, assessed unit root properties and structural breaks. Findings indicated a positive but insignificant long-run relationship (β = 0.180, p = 0.448) and a marginally positive short-run effect (ΔNRE*INQ = 0.107, p = 0.059) followed by a negative lagged impact (ΔNRE*INQ (1) = -0.186, p = 0.001). Granger causality tests showed a unidirectional short-run influence from resource endowments to GDPPC without reverse causality. The study suggests that while Nigeria’s resource wealth can support long-term growth, short-term fluctuations weaken economic stability. Policymakers should consider stabilising strategies like independent wealth funds and economic diversification to mitigate vulnerabilities to price shocks.

Keywords: Resource endowment, Growth, institutions, Nigeria, volatility.