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