Overview of the Performance of the Nigerian Oil and Gas Sector (1981-2014)

Volume 1, Issue 2, December 2016     |     PP. 76-92      |     PDF (300 K)    |     Pub. Date: December 26, 2016
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Chidi U. Ubani, Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State.
Adeniyi M. Yusuff, Department of Business Administration College of Agriculture and Technology Igboora, Nigeria
Olusegun Adeteji Okutimiren, Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria.
Ekanem Edem Udo Udo, Department of Business Management, University of Calabar, Calabar- Nigeria

For the past three decades, oil has been a major source of revenue and energy for the Nigerian economy. Nigeria’s huge oil revenue has not satisfactorily impacted on the living conditions on majority of Nigerians. The “paradox of plenty” lends support to the “resource curse” doctrine that abundant natural resource endowment makes a country poorly focused on growth and development. Against this background, this study evaluates the performance of oil sector of Nigeria. The required data was sourced from Central Bank of Nigeria Statistical Bulletin and the study started with test of stationarity of time series data using Augmented Dickey-Fuller test, while Johansen test for co-integration ascertains the long run relationship of the variables. Ordinary least square was used to analyze the data. The results show that investment and oil export has a positive relationship with output level of Gross Domestic Product. The R-squared result revealed that 95.2% of the total variation in economic growth is accounted for by changes in the explanatory variables. The study recommends that appropriate policies to address the issue of oil dependence in Nigeria should focus on diversification and industrialization to promote economic growth. Also, government should increase its expenditure on rural roads and electricity as this will accelerate the productive sectors as well as raise the standard of living of poor citizens in Nigeria.

Economic growth, Government Policy, Nigeria and Oil Export

Cite this paper
Chidi U. Ubani, Adeniyi M. Yusuff, Olusegun Adeteji Okutimiren, Ekanem Edem Udo Udo, Overview of the Performance of the Nigerian Oil and Gas Sector (1981-2014) , SCIREA Journal of Economics. Volume 1, Issue 2, December 2016 | PP. 76-92.


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