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

Authors

  • Abiodun Edward Adelegan Department of Economics and Development Studies Federal University Otuoke, Otuoke Bayelsa State Nigeria, West Africa
  • Emmanuel Otu Department of Economics and Development Studies Federal University Otuoke, Otuoke Bayelsa State Nigeria, West Africa
  • Michael Oguwuike Enyoghasim Department of Economics and Development Studies Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa
  • Uwazie Iyke Uwazie Department of Economics Michael Okpara University of Agriculture Umudike Abia State, Nigeria West-Africa
  • C. Paul Obidike Department of Accountancy/Banking and Finance Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa
  • Nwanja Joseph Chukwu Department of Mass Communication Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa
  • Chibuzo Glory Agu Department of Economics and Development Studies Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa
  • Clara Kelechi Anyanwu Department of Economics and Development Studies Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa
  • Uche Sunday Aja Department of Mass Communication Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa
  • Adeola Sidikat Oyeleke Department of Mass Communication Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa

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.

Keywords: Oil price shocks, oil revenue, exchange rate, private consumption, credit to the private sector.      

JEL Classifications: E39, K131, Q40

 DOI: https://doi.org/10.32479/ijeep.10022

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Author Biographies

Abiodun Edward Adelegan, Department of Economics and Development Studies Federal University Otuoke, Otuoke Bayelsa State Nigeria, West Africa

Department of Economics and Development Studies. Federal University Otuoke, Otuoke, Bayelsa State. Lectuer

Emmanuel Otu, Department of Economics and Development Studies Federal University Otuoke, Otuoke Bayelsa State Nigeria, West Africa

Department of Economics and Development Studies. Federal University Otuoke, Otuoke, Bayelsa State. Lectuer

Michael Oguwuike Enyoghasim, Department of Economics and Development Studies Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa

Department of Economics and Development Studies. Alex  Ekwueme Federal University Ndufu-Alike, Ikwo (AE-FUNAI) Lectuer

Uwazie Iyke Uwazie, Department of Economics Michael Okpara University of Agriculture Umudike Abia State, Nigeria West-Africa

Department of Economics. Michael Okpara University of Agriculture, Umudike. Lectuer

C. Paul Obidike, Department of Accountancy/Banking and Finance Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa

Department of Accountancy/Banking and Finance. Alex  Ekwueme Federal University Ndufu-Alike, Ikwo (AE-FUNAI) Lectuer

Nwanja Joseph Chukwu, Department of Mass Communication Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa

Department of Mass Communication. Alex  Ekwueme Federal University Ndufu-Alike, Ikwo (AE-FUNAI) Lectuer

Chibuzo Glory Agu, Department of Economics and Development Studies Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa

Department of Economics and Development Studies. Alex  Ekwueme Federal University Ndufu-Alike, Ikwo (AE-FUNAI) Lectuer

Clara Kelechi Anyanwu, Department of Economics and Development Studies Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa

Department of Economics and Development Studies. Alex  Ekwueme Federal University Ndufu-Alike, Ikwo (AE-FUNAI) Lectuer

Uche Sunday Aja, Department of Mass Communication Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa

Department of Mass Communication. Alex  Ekwueme Federal University Ndufu-Alike, Ikwo (AE-FUNAI) Lectuer

Adeola Sidikat Oyeleke, Department of Mass Communication Alex Ekwueme Federal University, Ndufu-Alike Ikwo (AE-FUNAI) Abakaliki, Ebonyi State Nigeria, West Africa

Department of Mass Communication. Alex  Ekwueme Federal University Ndufu-Alike, Ikwo (AE-FUNAI) Lectuer

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Published

2021-08-20

How to Cite

Adelegan, A. E., Otu, E., Enyoghasim, M. O., Uwazie, U. I., Obidike, C. P., Chukwu, N. J., Agu, C. G., Anyanwu, C. K., Aja, U. S., & Oyeleke, A. S. (2021). Oil Price Shocks and Oil Revenue: Investigating the Propositions for Well-Being in Nigeria. International Journal of Energy Economics and Policy, 11(5), 59–65. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/10022

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