IDEAS home Printed from https://ideas.repec.org/a/arp/ijefrr/2016p33-40.html
   My bibliography  Save this article

Impact of Oil Price Volatility on Macroeconomic Variables and Sustainable Development in Nigeria

Author

Listed:
  • Eneji Mathias Agri

    (Department of Economics, University of Jos; China-Africa Science and Technology Foundation, Beijing)

  • Mai-Lafia Dimis Inusa

    (Department of Economics, University of Jos, Nigeria)

  • Nnandi Drenkat Kennedy

    (Department of Economics Education, University of Jos, Nigeria)

Abstract

The main objective of this study is to determine the impact of oil price volatility on macroeconomic variables and sustainable development in Nigeria. The significant role of oil in the Nigerian economy cannot be overestimated. Though there are studies by other researchers on oil prices and macroeconomic variables, their findings are contentious and country-specific. Our literature review and methodology shade lights on these positions. We used secondary time series data in a vector auto regression analysis. We found that fluctuations in oil prices do substantially affect the real GDP, exchange rates, Unemployment, Balance of payments and interest rates in Nigeria. Negative shocks in the international oil market, have significant impact on price fluctuations. Due to increased imports in the Nigerian economy, inflationary pressures are inevitable and are pronounced. Government revenues and expenditures have decreased significantly. We recommend diversification of the economy and energy sources for sustainable development in Nigeria.

Suggested Citation

  • Eneji Mathias Agri & Mai-Lafia Dimis Inusa & Nnandi Drenkat Kennedy, 2016. "Impact of Oil Price Volatility on Macroeconomic Variables and Sustainable Development in Nigeria," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 2(2), pages 33-40, 02-2016.
    • Handle: RePEc:arp:ijefrr:2016:p:33-40
    as

    Download full text from publisher

    File URL: http://www.arpgweb.com/pdf-files/ijefr2(2)33-40.pdf
    Download Restriction: no
    File URL: http://www.arpgweb.com/?ic=journal&journal=5&month=02-2016&issue=2&volume=2
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patricia Iyore Ajayi & Adedayo Emmanuel Longe & Oladayo Ayokunle Omitogun & Shehu Muhammad, 2019. "Oil Price Shocks and Energy Consumption in Nigeria," Business & Management Compass, University of Economics Varna, issue 4, pages 275-293.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arp:ijefrr:2016:p:33-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor (email available below). General contact details of provider: http://www.arpgweb.com/?ic=journal&journal=5&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.