TO GET THE COMPLETE JOURNAL/THESIS FOR TOPIC BELOW,
CALL: 08168759420, 08068231953
WHATSAPP: 08137701720
OIL PRICE VOLATILITY AND BUDGETARY PERFORMANCE: EVIDENCE FROM NIGERIA (1980 – 2019)
Abstract
The study examined oil price volatility and budgetary performance: Evidencefrom Nigeriafrom 1980 to 2019. The specific objective of this study is to evaluate the effect of oil price volatility on budget performance in Nigeria. Budgetary performance was captured directly by GDP growth rate and indirectly by government expenditures. The study used secondary data sourced from the CBN and the WBG. Data for the study were analyzed using descriptive statistics, Stationarity tests, and other selected diagnostic tests, Ordinary least square regression, Granger-Causality and Cointegration statistical techniques at the 5% level of significance. The findings showed that oil price volatility in the short-run, had negative but significant effect on budgetary performance, measured directly using GDP growth rate, and positive and significant effect when measured indirectly using government expenditures; while in the long-run equilibrium, the effects were significant. The study concludes that oil price volatility has significant effect on budgetary performance and recommends that the federal government should put appropriate framework and infrastructures in place to revamp and restart moribund local refineries and stop importation of refined petroleum products. The government should also embark on urgent export diversification and development of non-oil foreign currency earning products.
Key Words: Oil Price, Volatility, Budget Performance, Economic Growth, Zero Base Budgeting System, Central Bank of Nigeria,