Oil and Gas Reserves and Economic Growth in Nigeria (1981 – 2015): Matters Arising

Abstract

Nigeria had over the years depended on oil and gas reserves for economic growth and development. With the dwindling oil prices, economic growth of Nigeria has been depressed. However, the focus of this research was to examine Oil and Gas reserves and economic growth in Nigeria. Specifically, this paper determined the relationship between oil export and economic growth in Nigeria for a period of 35 years (1981 - 2015). Secondary data were obtained from CBN statistical bulletin. Multiple regression analysis was used to determine the relationship of oil and gas revenue; oil and gas export; exchange rate and economic growth proxy by Real Gross Domestic Product (RGDP). Also, Stepwise regression was employed to isolate the relationship between the independent variables and the dependent variable. The result of the data analysis showed that oil and gas export and exchange rate have a positive relationship with economic growth while oil and gas revenue is negatively related to RGDP. It was recommended among others that Security should be put in the high sea where crude oil products are usually smuggled; this will help to reduce the loss from illegal export of crude oil products from Nigeria. The Nigerian National Petroleum Corporation (NNPC) should diversify its export baskets through downstream production; this will enhance the refining of petroleum products for exports.