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Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria

Author

Listed:
  • Olabisi Popoola

    (Covenant University, Ota, Nigeria)

  • Alege O. Philip

    (Covenant University, Ota, Nigeria)

  • Obindah Gershon

    (Covenant University, Ota, Nigeria)

  • Kaladede Gift

    (Landmark University, Omu-Aran, Nigeria.)

Abstract

The oil sector is dominant, as it is the largest exported commodity in Nigeria. However, evidence has shown that Nigeria, as an oil-dependent country, faces frequent oil price fluctuations that have posed greater challenges to Nigeria s agriculture sector, hence affecting agricultural productivity. This necessitates the need to investigate the effect of oil price shocks on agricultural productivity in Nigeria. This study adopted the Hodrick Prescott data filtering approach to check for the fluctuation of oil prices. The result revealed fluctuation in Nigeria oil price from 2018 up until recently. The long-run relationship was established using the SVAR and the normalised equation. The result revealed a negative relationship between agricultural productivity, oil price and real exchange rate. While a positive relationship exist between agricultural productivity, consumer price index and oil production. oil price fluctuations affect most of the variables, however, oil price shock shows more variations across the time for agricultural productivity. To this end, this study revealed that oil price shock has an adverse effect on Nigeria s productivity in agricultural sector. Hence, the government needs to implement a policy and programmes that will serve as oil price shock absorbers in order to sustain agricultural productivity.

Suggested Citation

  • Olabisi Popoola & Alege O. Philip & Obindah Gershon & Kaladede Gift, 2022. "Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 490-496, May.
    • Handle: RePEc:eco:journ2:2022-03-54
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    References listed on IDEAS

    as
    1. Isaac B. Oluwatayo & Henrietta U. Ukpe, 2015. "Effect of Petroleum Pricing on Agricultural Production in Nigeria: An Error Correction Modeling Approach," International Journal of Agricultural and Environmental Information Systems (IJAEIS), IGI Global, vol. 6(3), pages 17-28, July.
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    Cited by:

    1. Taiwo Akinlo, 2024. "Oil price and real sector in oil-importing countries: an asymmetric analysis of sub-Saharan Africa," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-27, February.
    2. Henry Okodua & Ese Urhie & Moses Akpesiri Erhi & Christiana Onyohu Hassan & Eyitemi Ayomikun Fasanu, 2022. "Oil Price Volatility and Equity Valuation of Listed Energy Companies in Nigeria: A Panel ARDL Model," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 482-490, September.

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    More about this item

    Keywords

    Oil Price; Shock; Agricultural Productivity;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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