OIL REVENUE AND PERFORMANCE OF THE NIGERIAN ECONOMY

Abstract

The broad objective of this study examines oil revenues and performance of the Nigeria economy using times series data for the period 1980 to 2014. The ex-post-facto research design was adopted in the methodology of the study while secondary data were extracted from the Central Bank of Nigeria (CBN) statistical bulletin. The data analysis techniques employed is regression analysis using the ordinary least squares techniques. The study found a positive and significant relationship between oil revenue and economic performance of Nigeria. Gini coefficient was found to negatively affect economic performance of Nigeria and is statistically significant. Openness of the economy was positive and statistically significant Oil revenue was found to be positive and statistically significant. The conclusion drawn in this study is that oil revenues enhance the performance of the Nigeria economy in the period examined. The study recommends that proper and adequate improvement in the revenue generation via other sector in the economy is needed which can be achieved through diversification of the economy.