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Oil Price Shocks and Oil Revenue: Investigating the Propositions for Well-Being in Nigeria

Author

Listed:
  • Abiodun Edward Adelegan

    (Department of Economics and Development Studies, Federal University Otuoke, Otuoke, Bayelsa State, Nigeria)

  • Emmanuel Otu

    (Department of Economics and Development Studies, Federal University Otuoke, Otuoke, Bayelsa State, Nigeria)

  • Michael Oguwuike Enyoghasim

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • Uwazie Iyke Uwazie

    (Department of Economics, Michael Okpara University of Agriculture Umudike, Abia State, Nigeria,)

  • C. Paul Obidike

    (Department of Accountancy/Banking and Finance, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • Nwanja Joseph Chukwu

    (Department of Mass Communication, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria.)

  • Chibuzo Glory Agu

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • Clara Kelechi Anyanwu

    (Department of Economics and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria,)

  • Uche Sunday Aja

    (Department of Mass Communication, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria.)

  • Adeola Sidikat Oyeleke

    (Department of Mass Communication, Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, Nigeria.)

Abstract

This paper analyzed and estimated the effects of oil price shock and oil revenue on well being in Nigeria for the sample period of 1980 2018. The Autoregressive Distributed Lag model (ARDL) estimated with the Ordinary Least Square technique was used to examine the relationship among the variables. Findings from the model revealed that there was a direct and significant relationship between oil revenue, private consumption, exchange rate, credit to the private sector and well being, however, credit to the private sector exhibited a positive and insignificant relationship on well being in the long run. There was a direct and significant relationship between the independent variables and well being in the short run; however, credit to the private sector indicated a negative but significant relationship. The study therefore recommended deepening savings during periods of increase in oil price for better economic outcomes.

Suggested Citation

  • Abiodun Edward Adelegan & Emmanuel Otu & Michael Oguwuike Enyoghasim & Uwazie Iyke Uwazie & C. Paul Obidike & Nwanja Joseph Chukwu & Chibuzo Glory Agu & Clara Kelechi Anyanwu & Uche Sunday Aja & Adeol, 2021. "Oil Price Shocks and Oil Revenue: Investigating the Propositions for Well-Being in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 59-65.
    • Handle: RePEc:eco:journ2:2021-05-9
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    References listed on IDEAS

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    Cited by:

    1. Jungho Baek, 2024. "Does Crude Oil Production Respond Differently to Oil Supply and Demand Shocks? Evidence from Alaska," Commodities, MDPI, vol. 3(1), pages 1-13, February.
    2. Akhmad Akhmad & Ambo Asse & Nursalam Nursalam & Ibrahim Ibrahim & Bunyamin Bunyamin & Ansaar Ansaar & Sahajuddin Sahajuddin, 2023. "The Impact of the Increase of Oil Fuel Price and Government Subsidy on Indonesia’s Economic Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 547-557, November.

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    More about this item

    Keywords

    Oil price shocks; oil revenue; exchange rate; private consumption; credit to the private sector;
    All these keywords.

    JEL classification:

    • E39 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Other
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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