ASSESSMENT OF THE EFFECTS OF OIL PRICE VOLATILITY ON NIGERIA’S ECONOMIC GROWTH: 1988-2021
Moses Gosele Danpome
Volume 9 Issue 2
Abstract
The study examines the effects of oil price volatility on Nigeria’s economic growth spanning the period 1988 to2021. The study used quarterly data obtained from CBN bulletins and adopted Vector Auto Regressive (VAR )model in its methodology using seven explanatory variables, namely oil price volatility, real GDP, real government expenditure, real exchange rate, inflation rate, real money supply and real imports. The result of the study reveals that there is direct effect of oil price volatility on real government expenditure, real exchange rate and real import, while, it has no effect on real GDP, real money supply and inflation through other variables, such as real government expenditure. The study recommends that there is the need for a mechanism that will enhance fiscal prudence, budget reform, diversification of import and export, investment in non-oil sector as well as maintain proper accountability and good corporate governance. Keywords: Oil Price Volatility, Economic Growth
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