Impact Of Crude Oil Price Volatility On Economic Growth Of Nigeria From 1980-2012

ABSTRACT

This study examines the impact of crude oil price volatility on the economic growth in Nigeria from 1980-2012. Secondary sources of data which includes, gross domestic product, total crude oil production, Exchange rate, inflation rate, crude oil price volatility, were sourced from the central bank of Nigeria, Nigeria National petroleum corporation, and U.S Energy Information Administration (EIA). The study employed ordinary least square method regression techniques and standard deviation to analyse the data, it also employed SPSS statistical software to analyse the data. The result shows that crude oil price volatility, Exchange rate, total crude oil production were positive significant relationship with Gross Domestic Product, while inflation was not significantly related to Gross Domestic Product. We recommend that appropriate policy measures that control inflation should be adopted to improve the level of economic growth in Nigeria.