Crude Oil Price and Economic Growth in Nigeria

The study examined the effect of crude oil price on economic growth in Nigeria from 1981-2021. The objectives of the study are to examine the effect crude oil price and oil exports on gross domestic product in Nigeria. Annual data were collected from Central Bank of Nigeria (CBN) statistical bulletins and World Development Index (WDI). The main technique of analysis is the Autoregressive Distributed Lag (ARDL) model. The ARDL long run results showed that, there is a long-run effect of crude oil price and oil exports on economic growth. The empirical short run results showed that, there is an inverse relationship between crude oil price and gross domestic product. Also, crude oil export showed significant positive impact on gross domestic product. Thus, it can be concluded that in the short run, the response of GDP to crude oil price is asymmetry. Meaning that, crude oil price brings about negative impact on gross domestic product. Based on the findings it was recommended amongst others that, there is the need for proper coordination of fiscal and monetary policy for sustainability of economic growth in terms of real gross domestic product.