Abstract

Oil prices traditionally have been more volatile than many other commodity or asset prices since World War II and has have a lot implications on major macroeconomic variables such as inflation, money supply, capacity utilisation and economic growth to mention a few. This paper investigated the growth implications of crude oil price fluctuation in Nigeria. Empirical analysis was conducted by applying the multiple regression of the ordinary least square technique to the annual data on the Nigeria economy for the period 1985 -2015. The model was found to be significant and most of its estimates are as expected. The study revealed that a little shock in the price of crude oil in the global oil market in the current period will produce a long–term effect on economic growth in Nigeria. The study suggested the need for the policy makers to diversify the productive base of the economy to other sectors such as Agriculture, Manufacturing, Tourism and other service oriented sectors to open up a wider spectrum for inflow of income to the economy and break the overdependence of the economy on oil sector.