EMPIRICAL ASSESSMENT OF THE IMPACT OF OIL REVENUE ON THE WELFARE OF NIGERIANS
Abstract
This study empirically examined the impact of crude oil revenue on the welfare of Nigerians between 1990 and 2021. Specifically, this study aimed to determine the impact of crude oil revenue on Gross National Income (GNI) per capita of Nigerians; investigating the impact of crude oil price on GNI per capita of Nigerians, and the impact of inflation rate on GNI per capita of Nigerians. Secondary data on Gross National Income per capita (GNI), oil revenue (OIR), crude oil price (COP), and inflation rate (INFL) were source from the Central Bank (CBN) Statistical Bulletins for various years and World Bank Development Indicators. The Ordinary Least Square (OLS) regression model was employed to analyze the data collected. The findings revealed that all variables except oil revenue do not have a significant impact on the welfare of Nigerians eventually. The study recommended that there, should be concerted effort by the Federal Government of Nigeria to diversify the economy from a monoproduct economy heavily dependent on crude oil. This is because the Nigerian economy cannot continue to depend on crude oil prices at the international market, which is subject to a high level of volatility that the government has no control.
Keywords:
Crude Oil Revenue, Welfare, Gross National IncomeDownloads
Published
DOI:
https://doi.org/10.5281/zenodo.11092144Issue
Section
How to Cite
License
Copyright (c) 2024 OSAYI, Valentine Igbinedion, Ph.D, PGDE, FCILRM, FERP , AKEMIEYEFA, Matthew, PhD
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Adugbo, D. (2016). Nigeria: Oil Price Fall—How the Mighty Are Crawling. Daily Trust. http://www.allafrica.com/stories/201601130544.html
Akinleye, G. T., Olowookere, J. K. & Fajuyagbe S. B. (2021), The impact of oil revenue on economic growth in Nigeria 1981-2018, Acta UniversityDanubiu, 17(3), 317-329
Akinleye, S. O. & Ekpo, S. (2013). Oil price shocks and macroeconomic performance in Nigeria. Conom´ıa Mexicana Nueva Epoca, ´ 2, 565–624.
Akinlolu A. O. & Nejo F. M. (2020), Oil revenue and Nigerian economic growth from 1981-2018: A resource curse? International Journal of Management Studies and Social Science Research, 2, ISSN: 2582-0265
Akpokerere O. E. &, Anuya M. (2020), Oil revenue and behaviour of selected macroeconomic indicators in Nigeria:1981 – 2019, International Journal of Development and Economic Sustainability, 8 (5), 9-20
Auty R. M, (1998) Resource abundance and Economic development: improving the performance of Resource-rich countries. Helsinki 1998(44), ISSN 12396761 ISBN 9529520735
Budina, N., & Wijnbergen, S. (2008), Managing oil revenue volatility in Nigeria: The role of fiscal policy. Africa at a Turning Point? Growth, Aid and External Shocks, 427-459.
Central Bank of Nigeria (2010), CBN Annual Report and Statement of Account for the Year Ended 31st December, 2010, retrieved online on Nov 12, 202.
Central Bank of Nigeria. (2020). Central Bank of Nigeria Statistical Bulletin. Abuja: Central Bank of Nigeria.
Corden, W. M. & J. P. Neary, (1982), Booming sector and de-industrialization in a small open economy, Economic Journal (92), 825-848.
Efanga, U. O., Ugwuanyi, G. O. & Ogochukwu, C. O. (2020), Analysis of the impact of oil revenue on economic growth of Nigeria between 1981 and 2018. IOSR Journal of Economics and Finance (IOSR-JEF), 11(2), 25-34. e-ISSN: 2321-5933, p-ISSN: 2321-5925. DOI: 10.9790/5933-1102012534
IMF (2016). International Monetary Fund Economic Report:Africa Focus. 49, 1-29. https://doi.org/10.5089/9781498399746.002
Ismail, K. (2010), The Structural Manifestation of the Dutch Disease: The Case of Oil Exporting Countries. International Monetary Fund.10(102)
Nweze, P. N. & Greg, E. E. (2016). An empirical investigation of oil revenue and economic growth in Nigeria. European Scientific Journal. 12(25), ISSN ISSN1857-7431.
Odularu, G. O. (2008). Crude oil and the Nigerian economic performance. World Trade Organisation (WTO), Centre William Rappard, Rue de Lausanne, 3(4).
Ogbonna, G.N.& Appah, E. (2012), Petroleum income and Nigerian economy: empirical evidence. Arabian Journal of Business and Management Review, 1(9), 33-59.
Okonkwo, I. V. & Madueke, N. M., (2016), Petroleum revenue and economic development of Nigeria 1980 – 2013. IOSR Journal of Polymer and Textile Engineering (IOSR-JPTE), 3(2), 39-55. e-ISSN: 2348-019X, p-ISSN: 2348-0181, DOI: 10.9790/019X-03023955
Ugwo, C. E., Umeh, A. C., & Ochuba, O. D. (2019), An analysis of the impact of crude oil export and economic growth in Nigeria 1980-2017. Economics and Social Sciences Academic Journal, 1(2), 12-19. ISSN (5282 -0053); p –ISSN 4011 – 230X:
World Bank (2013). Nigeria economic report. Washington, DC: World Bank. (1)
