ABSTRACT

This research work was conducted to investigate the impact of the oil industry on the economic growth performance of Nigeria. In the process of the research, the ordinary least square was (OLS) regression technique was employed. Considering the impact of time on the changes in economic variables, the analysis was carried out using the simple regression method in which the Gross Domestic Product (GDP), proxy to economic growth, was used as the dependent variable. While the oil revenue (OREV) and Exchange Rate (EXCH) are the independent variables. However, the unit root test was conducted using Augmented Dickey Fuller to test for the stationality of the variables. The result shows that GDP is stationary and the independent variables are non-stationary. The researcher also used Engel and Granger to show if the variables are cointegrated or not. From the result, since Tca l< Ttab at 5% critical value, we accept the null hypothesis that it is non-stationary and integrated of order one. Thus, we conclude that the variable is not cointegrated. The OLS result, shows oil revenue and exchange rate have a positive or direct relationship with Gross Domestic Product (GDP) in Nigeria. This implies that the higher the oil revenue and exchange rate, the higher the level of economic growth. The researcher therefore, recommends that government should formulate appropriate policy mix that would motivate the firm in the oil sector to enhance improved performance and contribution of the sector.