Samuel Olorunfemi Adams, Jumoke Olamide Bello

 Department of Statistics, University of Abuja, Abuja, Nigeria

sadams@uniabuja.edu.ng

Received: Feb 23, 2022 / Revised: Mar 7, 2022 / Accepted: Mar 12, 2022

Abstract

 The overdependence on crude oil has produced susceptivity to every part of the Nigerian Gross Domestic Growth (GDP) and there was the need to examine the effect of crude oil on the economy of Nigeria. This study, therefore, investigates the long-run effect between oil revenue, oil price volatility, and economic growth in Nigeria. The data on oil revenue, non-oil revenue, oil price volatility, and per-capita income from the year 2006 – to 2020 extracted from the Central Bank of Nigeria (CBN) Statistical Bulletin was applied in this research work. The research applied Descriptive Statistics, Augmented Dickey-Fuller Unit Root test, Johansen cointegration, and Autoregressive Distributed Lag (ARDL) co-integration statistical method to examine the long-run effects of crude oil production on Nigeria’s economy. It was discovered from our result that; oil revenue plays a remarkable role in Nigeria‘s economy by its advancement of the country’s GDP. Furthermore, Nigeria has regulated oil revenue to accomplish economic growth in numerous ways. The study recommended that the Nigerian Government should diversify its export supply through downstream production and encouragement of more private sector participation.

Keywords   ADF, ARDL, GDP, Price Volatility, Economic growth

How to cite this article

Adams, S. O., Bello, J. O. (2022). Modeling the Effect of Crude Oil Production and Other Factors on Nigeria Economy: An Autoregressive Distributed Lag Approach Science Archives, Vol. 3 (1), 72-79. http://dx.doi.org/10.47587/SA.2022.3109

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