ABSTRACT

The history ofoil industry in Nigeria dates to early 1900’s when the British Colonial Government shortly after the creation ofNigeria as a legal entity started the first geological survey of the country. From 1956 when the first oil was drilled in Oloibiri to mid-2013 when the price ofthe commodity crashed beyond imagination ofcommon sense till this day, oil remained the mainstay ofNigeria's economy. The contributions ofoil to the domestic investment in Nigeria is however the subject ofthis research. However, in analyzing the above research, the researcher adopted the following objectives which includes ascertaining the effect ofoil revenue on domestic investment tn Nigeria and determining the empirically whether there is anyfunctional long-run relationship between oil revenue and domestic investment in Nigeria. Thus, research questions and research hypotheses were structured in accordance with the specific objectives. In a bid to achieve a meaningful research, this research reviewed related literatures on oil revenue and investment in Nigeria. The chapter two ofthe research was sub-divided into three subheadings such conceptual framework, theoretical framework and empirical review. However, in the quest to perfect this research; ex-postfacto research design was adopted. Thus, the data gathered were analyzed using multiple regression. The analysis however made the followingfindings; that there is an increase in the economy is as a result of increase in crude oil revenue, petroleum oil revenue and gas revenue within the years under review. Sequel to the findings and conclusion, the research made the following recommendations that tax on oil investment should be reduced so as to attract Foreign Direct Investment (FDI) on the oil sector among others.