Assessing the Impact of Oil Price Volatility on Nigeria's EconomicGrowth and Stability 2006 to 2022: a Quantitative Analysis

Abstract

This research use time series analysis to examine Nigeria's
economic dynamics, concentrating on the link between Real
Gross Domestic Product (RGDP), Inflation (IFR), Interest
(INT), and Crude Oil Price. The information covers the years
2006 to 2022 and gives insights into how the country has
changed over time. The results show a positive trend in
RGDP, indicating economic expansion. Inflation rates vary,
suggesting the presence of both inflationary and
deflationary influences. Interest rates are constant, while
crude oil prices are volatile, affecting Nigeria's oildependent economy. A somewhat positive association
between Crude Oil Price and independent variables is
revealed using regression analysis. The statistical
significance of the independent variables, on the other hand,
is only slightly supported. The ANOVA table validates the
regression model's overall significance, indicating an
influential independent variable. The influence of
independent factors on the dependent variable is
demonstrated by coefficients, but their significance falls
short of traditional values. The correlation matrix reveals an
inverse link between RGDP and output/crude oil exports.
There are weak positive connections between RGDP and
inflation, as well as crude oil prices and inflation. Interest
rates and crude oil exports do not have a strong relationship
with crude oil prices. These findings helped to comprehend
Nigeria's economic dynamics and illustrate the complexities
of varied interactions. To go deeper into certain hypotheses,
more study is required. The study emphasizes the
significance of understanding the impact of oil price changes
on the Nigerian economy in order to drive appropriate
policy responses and the necessity for economic
diversification