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Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch

Author

Listed:
  • Jonathan E. Ogbuabor

    (Department of Economics, University of Nigeria, Nsukka, Nigeria)

  • Anthony Orji

    (Department of Economics, University of Nigeria, Nsukka, Nigeria)

  • Charles O. Manasseh

    (Department of Economics, University of Nigeria, Nsukka, Nigeria,)

  • Cynthia A. Nwosu

    (Department of Economics, University of Nigeria, Nsukka, Nigeria)

Abstract

Industrializing Nigeria requires steady and affordable energy supply and distribution. Hence, this paper examined Nigeria's petrol market for evidence of consumers paying above the government approved prices and for evidence of asymmetric response of retail petrol prices to changes in oil price. National Bureau of Statistics' (NBS) Petrol Price Watch data was used together with descriptive analysis and an ARDL-ECM model. Overall, we find that even when the product is subsidized, consumers in most states pay above the government approved prices. In addition, we find that both in the short-run and long-run, retail petrol prices in Nigeria respond asymmetrically to changes in oil price. These findings are contrary to Nigeria's status as an oil-rich country, thereby capturing the stark reality of poor utilization of the country's oil resources to improve its industrial competitiveness.

Suggested Citation

  • Jonathan E. Ogbuabor & Anthony Orji & Charles O. Manasseh & Cynthia A. Nwosu, 2018. "Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 175-181.
    • Handle: RePEc:eco:journ1:2018-03-22
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    References listed on IDEAS

    as
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    4. Ogunlowo, Olufemi O. & Bristow, Abigail L. & Sohail, M., 2017. "A stakeholder analysis of the automotive industry's use of compressed natural gas in Nigeria," Transport Policy, Elsevier, vol. 53(C), pages 58-69.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania

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