Nigeria’s Volatile Oil Revenue: Is There a Cause for Concern?

Ogunjumo, Rotimi Ayoade and Musa, Nuhu and Adama, Ibrahim and Abu, Silas Idoko and Inedu, Hitlar and Hamzat, Salami and Ibitowa, Stephen Adesina (2024) Nigeria’s Volatile Oil Revenue: Is There a Cause for Concern? International Journal of Energy Economics and Policy, 14 (2). pp. 299-303. ISSN 2146-4553

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Abstract

This study, unlike previous studies, investigates the impact of volatile oil revenue on economic growth in Nigeria from 1986 to 2020. The study adopts the Auto-Regressive Distributed Lag technique (ARDL) to analyze the data. The results show that in the short-run, oil revenue volatility significantly depressed economic growth. In the long-run, however, oil revenue volatility improves economic growth in the country. The study therefore recommends that governments and policymakers in Nigeria should vigorously pursue policies that would reduce the reliance on oil revenue through greater economic diversification; otherwise economic growth may worsen in the short-run.

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