Empirical Analysis of Oil Price and Economic Growth in Nigeria

Abstract

The connection concerning the oil industry and a country's progression is really important, especially for countries like Nigeria that rely heavily on oil for money. This study looks at how oil prices affect Nigeria’s economy by checking things like how much the economy is growing, prices of goods, money altercation rates, and how much money is in circulation. The study also points out that depending too much on oil can be risky because changes in oil prices around the world can cause problems. Because of this, the research suggests that Nigeria should improve its economy by being careful with how it spends money and creating plans to rely less on oil. This way, the economy can be stronger and less affected by changes in oil prices. To understand this better, researchers used a special method to analyze data from 1981 to 2023. They looked for patterns to see how oil prices and the economy affect each other. They found that both short-term and long-term connections exist concerning oil prices and economic progression. When oil prices go up, it helps the economy grow, which means the government earns more money and can altercation money with other countries better. But if oil prices go down, it can cause problems like unstable money altercation rates and economic issues.