CRUDE OIL PRICE, EXCHANGE RATE AND THEIR EFFECT ON NIGERIA'S ECONOMY (1985 - 2015)

📄 Project Abstract

Nigeria is a mono-product economy in term of generating revenue from Crude oil price, which constituted its major export commodity, changes in oil prices have continued to have implications for the Nigerian economy and, in particular on the exchange rate movements. This study examined the effects of crude oil price and exchange rate on the Nigeria economy using quarterly data from the year 1985 to 2015. Relevant descriptive and econometric analyses were employed. The econometric tests used which include the unit root tests, Johansen co-integration technique and the Vector Error Correction Model (VECM), the unit root tests was carried out using the ADF, Phillip perron and ADF-GLS; all the variables were stationary at first difference. The long run relationship among the variables was determined using the Johansen Co-integration technique and there were 3 co-integrating vectors in total, the vector error correction model was used to examine the speed of adjustment of the variables from...