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Global Recession, Oil Sector and Economic Growth in Nigeria

In: Business and Management

Submitted By samidg
Words 5684
Pages 23
Asian Transactions on Basic and Applied Sciences (ATBAS ISSN: 2221-4267) Volume 01 Issue 06

GLOBAL RECESSION, OIL SECTOR AND ECONOMIC GROWTH IN NIGERIA.
BY S. O. OLADIPO (M.sc) Department of Economics and Accounting Bells University of Technology, Ota. E-mail address: giftsamniyo@yahoo.com AND PROF. J. O. FABAYO Department of Economics, Obafemi Awolowo University, Ile-Ife

ABSTRACT

This study investigates global recession and the oil sector, based on its effects on economic growth in Nigeria. No doubt the global economy has been experiencing some disturbances. Major economies of the world have been affected and so has the major sectors of these economies especially the ones that has a direct bearing with international trade been affected. The oil sector particularly has been one of the hit. For a country like Nigeria whose international trade is majorly in oil, the effect has become an issue. Empirical analysis using the Ordinary Least Square (OLS) reveals that there was a negative relationship between GDP and oil produced (domestic consumption and export) which is significant at 5% lever of significance i.e. (P < 0.05). The result also showed that there exists decline in the oil sector due to the global recession despite all measures given by government to curb it effects. It was
Jan 2012

recommended that the federal government needs to deregulate the sector for efficient performance, and also come up with more rigorous policies that will reduce this effects on the real sector most especially the oil sector whose contribute the largest portion of income in the Nigerian economy. Keywords: Gross Domestic Product (GDP), Oil Price, Oil Export and Domestic Consumption. Introduction Current Global Crisis started as a financial crisis but now a Global Economic Crisis. The crisis is unprecedented in severity of credit contraction (credit crunch & capital crunch). The…...

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