International Reserve and Oil Price Movement: Evidence from Nigeria

Bankole, Abiodun S.; Shuaibu, Mohammed I.

doi:10.36108/ijss/3102.11.0210

Cited by 3 publications

(1 citation statement)

References 9 publications

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“…After the civil wars in the 1960s, a number of regulatory acts were adopted, including the law on the redistribution of oil rents (the ''oil decree'') and the law on income from offshore oil production (Genova & Falola, 2003). These measures ensured, on the one hand, the establishment of the dominant role of the central government in relation to the regional authorities, on the other-a strong and stable dependence of the state budget and the economic system as a whole on rental income, exposure to external oil shocks (IMF, 2018), as well as the atrophy of agriculture and other sectors of the economy (Bankole & Shuaibu, 2013;Mordi, 2006). A significant decision in the economic history of the country is also the creation in 1977 of the Nigerian National Petroleum Corporation (NNPC), which combined the functions of the regulator of the oil and gas industry (authority), the issuance of permits for oil production in the country, operational activities for the production of hydrocarbons, as well as activities for the creation of joint ventures with international oil companies (production operators).…”

Section: The Case Study Of Economic Systems Of Rental Character Basedmentioning

confidence: 99%

Specifics of Public Administration in Countries With a Developed Energy Sector: The Case Study

et al. 2023

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Countries with a large energy sector are faced with the issues of forming and developing a state energy policy that takes into account not only sectoral and intersectoral aspects, but also the components of managing significant amounts of rental income. In this regard, any of these economic systems, on the one hand, has great opportunities associated with the management of energy resources as a factor of development, on the other hand, it is constantly at risk of destabilization of the economic system as a whole. To date, the economic history allows us to speak about the accumulation of a sufficient number of observations for conducting a comprehensive study of the features of the development of public energy policies. The study is based on the formalization of historical descriptions of the experience of 24 countries (30 cases). The article describes in detail the experience of 13 of the most striking cases. This made it possible to identify 14 variables for evaluating the state energy policy, while outlining three areas (areas of attention) of public administration. The choice of variables used in the model was made on the basis of the relative frequencies of the mechanism application for the observed population, MNRW-TF recommendations within the improving extractive industry, the formation of the contribution of resource industries to the socio-economic development of the country and etc. Further cluster analysis led to the identification of both a pronounced polarity in the development of the state energy policy and options for combining its areas. JEL Classifications: C82, Q43, Q48, P51, O57, O11.

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Section: The Case Study Of Economic Systems Of Rental Character Basedmentioning

confidence: 99%

Specifics of Public Administration in Countries With a Developed Energy Sector: The Case Study

et al. 2023

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Empirical assessment of the impact of external reserves on economic growth in Nigeria

Adama

Ohwofasa

Onabote

2022

Investment Management and Financial Innovations

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In the last few decades, the continuous depreciation in the value of the naira occasioned by the dwindling external reserves affected the exchange rate resulting in several macroeconomic fundamentals in Nigeria. The objective of the study is to examine the impact of external reserves on economic growth in Nigeria. The study utilizes the descriptive approach for the trend analysis, while the autoregressive distributed lag (ARDL) model was relied upon in scrutinizing the contemporaneous dynamics for the unrestricted ECM. The data that were culled from several issues of the Central Bank of Nigeria’s annual report and statement of account covered the period 1986–2020. Descriptively, the study finds that economic growth rate and external reserves witnessed fluctuations with the latter being relatively more pronounced. Accordingly, the study finds that in the long run, all the explanatory variables were key determinants of economic growth in Nigeria. Specifically, economic growth is significantly and positively responsive to changes in external reserves by 0.22%, inflation rate by 0.08%, and a one period lag of GDP of 0.21% contrary to its negative response to changes in exchange rate of 0.10% in the short run. The paper recommended that the government may consider providing conducive environment for increased productivity, thereby increasing foreign reserves. Likewise, the situation that may encourage exchange rate misalignment should be avoided. Finally, inflation rate must be controlled within a single digit. AcknowledgmentThe support from Landmark University, Omu-Aran, Kwara State, Nigeria, to publish this article is appreciated.

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The Impact of Foreign Direct Investment and Oil Revenue on Economic Growth in Nigeria

Manasseh

Nwakoby

Okanya

et al. 2023

Studia Universitatis „Vasile Goldis” Arad – Economics Series

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Many emerging economies, particularly oil-rich countries such as Nigeria, have neglected the key drivers of growth, and consequently resulting in a decline in investment and employment. In the midst of this, the current study sought to examine the extent to which foreign direct investment and oil revenue impact Nigerian economic growth. The estimation was done using ordinary least squares (OLS) techniques, and the Granger causality test was used to determine the direction of causality between FDI, oil revenue, and economic growth using annual time series data from 1991 to 2019. Hence, recognising that annual time series are high-frequency data, all the variables were subjected to OLS assumptions. The empirical findings revealed that FDI and oil revenue significantly impacted growth. Accounting for the impact of economic activities reflected in the role of financial inflow and outflow on economic growth, a significant and positive relationship was found. This implies that international monetary transactions between entities captured in the current account balance are key determinants of growth in Nigeria. Further evidence revealed that variables such as real exchange rate, inflation and interest rates significantly determine economic growth in Nigeria. As such, this finding was further supported by their interactive effects, revealing an inverse and significant influence on economic growth. The Granger causality results show bidirectional causality between oil revenue and growth, as well as between oil revenue and foreign direct investment in Nigeria. The robustness test, which employs GDP per capita and GDP growth as proxies for economic growth, is consistent with empirical evidence. As a result, FDI and oil revenues are important drivers of Nigeria's growth, ceteris paribus.

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International Reserve and Oil Price Movement: Evidence from Nigeria

Cited by 3 publications

References 9 publications

Specifics of Public Administration in Countries With a Developed Energy Sector: The Case Study

Specifics of Public Administration in Countries With a Developed Energy Sector: The Case Study

Empirical assessment of the impact of external reserves on economic growth in Nigeria

The Impact of Foreign Direct Investment and Oil Revenue on Economic Growth in Nigeria

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