Author(s)

Enaibre Felix Ighosewe^1#*, David Chucks Akan^1#*, Oghenekparobo Ernest Agbogun^2#*

¹Accounting, Banking and Finance Department, Asaba Campus, Delta State University, Asaba, Nigeria.
²Banking and Finance Department, University of Benin, Benin, Nigeria.

This study examined the effect of Crude Oil Fluctuation and the Nigerian economy: A resource-dependence approach covering a study period of 35 years (1984-2018). Variables used include Fluctuation in Oil Price per Barrel (FOBP), Diesel Pump Price Fluctuations (PPPF), Petrol Pump Price Fluctuations (DPPF), Kerosene Pump Price Fluctuation (KPPF), and Real GDP. The data were gotten from the CBN Statistical Bulletin, World Bank Report, and Oil Producing Exporting Countries Annual Report while it was analyzed using Auto-Regressive Distributed Lag Model. Various diagnostic tests proved that the model is fit for the study. Accordingly, the trend analysis appears to cast doubts on whether crude oil fluctuation made significant contributions to the Nigerian economy. However, the Pearson correlation coefficient substantially attests to a strong linear relationship between the regressed and the regressors. Particularly, the individual results restated that in the short run only Fluctuation in Oil Price per Barrel (FOBP) improved the Nigerian economy significantly. However, in the long run, both Fluctuation in Oil Price per Barrel (FOBP) and Kerosene Pump Price Fluctuation (KPPF) improve the Nigerian economy significantly. Hence we conclude that, if the Nigerian economy must experience outstanding performance, both the private and public agencies should not interfere in the apex bank surveillance on the excess crude account. More so, the federal government should endeavor to industrialize the Nigerian economy.

Crude Oil Fluctuation, Economic Performance, Nigeria, Resource Dependence Approach

Ighosewe, E. , Akan, D. and Agbogun, O. (2021) Crude Oil Price Dwindling and the Nigerian Economy: A Resource-Dependence Approach. Modern Economy, 12, 1160-1184. doi: 10.4236/me.2021.127061.