Oil price fluctuations and the nigerian economy pdf
a shock to oil prices.Based on all these findings, very limited studies have been done to assess the direct effects of oil price fluctuations on the economic growth. This study fills this gap by investigating the extent and magnitude of the shocks, contributions to the growth of Nigeria economy. Theoretical Framework The effect of oil price fluctuation on selected key macroeconomic indicators is the focus of the study. The selected macroeconomic variable are: foreign reserve, foreign exchange allocation, annual budget allocation and Gross domestic products. Unit Oil prices still low coupled with production cuts Nigeria Economic Outlook Top 10 themes for 2019 Source: World Bank Rising oil prices will not be sustained in the long term as oil production increases globally and demand stagnates. • Fluctuating prices leave Nigeria’s oil-driven economy vulnerable to external shocks • The oil production international oil prices. External reserves collapsed, fiscal deficits mounted and external borrowing ensued with the “jumbo loans” taken in 1979. Most of Nigeria’s macro-economic indices became unstable and worrisome. Several policy initiatives to address the defective structure and inefficiencies were taken, but poorly studies that oil price fluctuations/market disequilibria have no impact on the Nigerian economy (see Ikla et al, 2012; Chuku, Effiong and Sam, 2010; Olomola and Adejumo, 2006, for a survey). Moreover, the study disagrees with these studies on explanation of the impact of oil price on economy via effects of exchange rate fluctuations on the Nigeria economic growth and also the factors that influence exchange rate in Nigeria. 2.0 BRIEF REVIEW OF RELATED LITERATURE 2.1 Conceptual Issues Exchange rate is the price of the currency of one country expressed in terms of the currency of another.
3 Mar 2015 The value of Nigeria's oil exports fell by 14% in the half year to the and production to reduce the economy's dependence on volatile oil prices; and (7) foster 28 http://pwcnigeria.typepad.com/files/pwc_nigerias-2015-budget- bulletin.pdf leadership role in managing the global oil price fluctuation and
The effect of oil price fluctuation on selected key macroeconomic indicators is the focus of the study. The selected macroeconomic variable are: foreign reserve, foreign exchange allocation, annual budget allocation and Gross domestic products. Unit Oil prices still low coupled with production cuts Nigeria Economic Outlook Top 10 themes for 2019 Source: World Bank Rising oil prices will not be sustained in the long term as oil production increases globally and demand stagnates. • Fluctuating prices leave Nigeria’s oil-driven economy vulnerable to external shocks • The oil production international oil prices. External reserves collapsed, fiscal deficits mounted and external borrowing ensued with the “jumbo loans” taken in 1979. Most of Nigeria’s macro-economic indices became unstable and worrisome. Several policy initiatives to address the defective structure and inefficiencies were taken, but poorly studies that oil price fluctuations/market disequilibria have no impact on the Nigerian economy (see Ikla et al, 2012; Chuku, Effiong and Sam, 2010; Olomola and Adejumo, 2006, for a survey). Moreover, the study disagrees with these studies on explanation of the impact of oil price on economy via effects of exchange rate fluctuations on the Nigeria economic growth and also the factors that influence exchange rate in Nigeria. 2.0 BRIEF REVIEW OF RELATED LITERATURE 2.1 Conceptual Issues Exchange rate is the price of the currency of one country expressed in terms of the currency of another. GDP and Government revenue to oil price) and their SWFs are limited. This makes these countries vulnerable for a long period of low oil prices. In Sub-Saharan Africa, Nigeria, Angola and the smaller producers depend for about 20-30% on the fossil fuel sector and show a very high elasticity to oil price • Hence the non-oil and gas revenue portion decreased from 7.2 percent in 2009 to 7.0 percent in 2010 • 7 percent of domestic resource mobilization from the non-oil and gas sectors of the economy is very small and makes Nigeria’s domestic resource mobilization vulnerable to fluctuations in petroleum prices.
Keywords: Crude oil price volatility, Economic growth, South Africa of oil imports are African countries that include Nigeria, Libya, and Gabon; Europe, the.
The price of oil, or the oil price, generally refers to the spot price of a barrel of benchmark crude As the global economy expands, so does demand for crude oil. Both domestic political instability in oil producing countries and conflicts with followed by United Arab Emirates, Algeria, Nigeria, Ecuador and Gabon after a 3 Apr 2018 Nigeria's economy is largely dependent on crude oil export, as most of its revenue is generated from petroleum export [4,5]. This high level of. (2010) showed that global oil price affects Chinese economic growth and how fluctuations in oil price affect the economy of oil-exporting countries (Iran, and government revenues nexus in Nigeria (with exogeneity restrictions)“ /pdfs/ energy-economics/statistical-review/bp-stats-review-2019-full-report.pdf (2018). Oil price shocks and Nigeria's macro-economy. http://www.csae.ox.ac.uk/ conferences/2009-EDiA/papers/252-Akpan.pdf. Aliyu, 11 Mar 2020 Nigeria's economy has never fully recovered from the oil price crash that Get your free PDF: The 100 most influential Africans, 2019 edition. 10 Jun 2014 the years, has pigeon holed Nigeria's economy as a mono-product economy Volatility in exchange rate and oil prices was defined by. *Corresponding ock% 20Market%20Fluctuations_tcm4-46145.pdf. Obioma R ( 2006).
macroeconomic implications, both abroad and in Nigeria given that the Nigerian economy is highly vulnerable to oil price fluctuations. This paper analyses the.
CRUDE OIL PRICE FLUCTUATION AND THE NIGERIAN ECONOMY Apere ,T.O and Eniekezimene, A.F Department of Economics, Niger Delta University Bayelsa State, Nigeria. ABSTRACT Fluctuation in oil prices has been occurring since the end of the Second World War. These days, the rate of fluctuation in oil price is more pronounced. This has made serious
Changes in the crude oil price are correlated with global economic conditions and U.S. in analyzing the effect of fluctuations in the price of oil on the capital flows of in the Gulf of Mexico in 2005 and the pipeline accident in Nigeria in 2006.
With no significant long run relationship between oil price and economic growth in Nigeria, a significant short-run relationship exist between them (oil price and economic growth) thus, fluctuations in oil price distorts economic growth. Also, there is no significant long run relationship between human capital and real GDP, but short run relation is observed from human capital to real GDP thus, human capital hampers real GDP. In the short run, oil price contributed positively to rise in Jin (2008) discovered that the oil price increases exerts a negative impact on economic growth in Japan and China and a positive impact on economic growth of Russia. Specifically, a 10% permanent increase in international oil prices is associated with a 5.16% growth in Russian GDP and a 1.07% decrease in Japanese GDP. The price of a barrel of Brent crude oil in European countries fell from than $100 p/b in Sept 2014 to less than $46 p/b in January 2015. The oil price has more than halved in less than eleven months since Sept 2014.
oil price fluctuations is considered to be different for oil-importing and that oil price surges cause negative effects on the economies of Ghana and Nigeria but. 13 Mar 2019 Crude oil has been the major driver of the Nigerian economy and any The volatility change is also true of the oil price with a maximum Available online: http://repec.org/esFEAM04/up.29293.1080736850.pdf (accessed on