BEING A PROJECT SUBMITTED TO THE DEPARTMENT OF ECONOMICS, FACULTY OF SOCIAL SCIENCES, USMANU DANFODIYO UNIVERSITY, SOKOTO STATE, NIGERIA IN PARTIAL FULFILLMENT ON THE AWARD OF BACHELOR OF SCIENCE DEGREE IN ECONOMICS,

Abstract

ABSTRACT This research work will focus on the influence of oil revenue on economic growth in Nigeria between the year 1995 and 2024. This research employed secondary time series data that was collected in the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and the World Bank. A research design was the ex post facto research design and as the research design, the analysis was done with the descriptive statistics, the Augmented Dickey-Fuller (ADF) unit root test, co-integration analysis, and the Autoregressive Distributed Lag (ARDL) model. The study findings demonstrated that oil revenue has a positive, albeit insignificant, impact on the economic growth of Nigeria in the short run and the inflation is negatively related to the growth. The analysis indicates that despite the fact that oil revenue continues to be the biggest source of the Gross Domestic Product (GDP) in Nigeria, it has undermined its effects on long term economic results because of fluctuation in world oil prices, inefficiency in how resources are used and structural economic issues. The research proposes that the government of Nigeria ought to diversify the economy, enhance fiscal transparency as well as investing oil revenues on productive economic sectors like agriculture, manufacturing as well as infrastructures in a bid to attain sustainable economic growth.