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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

How has the oil industry affected macroeconomic activities in Nigeria?

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DOI: 10.25236/ermbfe.2019.106


Shuyue Zang

Corresponding Author

Shuyue Zang


Oil is one of the most essential natural resources in the world. Analysing the impact of the oil industry on economic development is, therefore, a particular focus of scholarly interest. This paper attempts to highlight and critically analyse the changes that occurred in the economy of Nigeria between 1986 and 2015. A vector autoregression model and a linear regression analysis are employed on some macroeconomic variables from 1986 to 2015. The econometric findings showed in the first study demonstrate that oil price shocks have not played a vital role on GDP, government expenditure, net export, and the real exchange rate in the last three decades. In addition, the linear regression analysis has shown that there is a significant negative relationship between the growth rate of the oil revenue and the GDP in Nigeria from 1986 to 2015, so the resource curse phenomenon can be seen to occur in Nigeria to a certain extent.


Oil resource; Nigerian economy; vector autoregression model