CRUDE OIL AND ECONOMIC GROWTH IN NIGERIA: A SIMPLIFIED PAIRWISE CAUSALITY TEST
CRUDE OIL AND ECONOMIC GROWTH IN NIGERIA: A SIMPLIFIED PAIRWISE CAUSALITY TEST

Summary/Abstract: This study examines how crude oil affects the economic growth of the Nigerian economy. Despite the early exploration of oil in Nigeria (since the 1950s),the Nigerian economy has been performing poorly in terms of growth and development in real terms, growth of sectoral output , diversification of the exports base, capital formation and accumulation, and labour development. Therefore, using some of the indicators of growth and development; this study re-examined how crude oil consumption has enhanced exports performance, capital accumulation and development of the Nigerian labour stock. The descriptive Statistics, correlation matrix, unit roots tests, cointegration and the Granger causal linkage tests were adopted as multivariate estimation techniques. The study observed and concludes that the crude oil consumed within the economy has no tangible impact on the Nigerian economy. Furthermore, the study also concludes that crude oil export is very significant to the utilization of labor, and has engendered economic growth in Nigeria. The study recommends that the revenue from oil should be invested in the productive sector and human capital development in the Nigerian economy.

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