Oil Price, Impact and Growth in Nigeria Economy

Nigeria has witnessed the implications of the regular reduction in global crude oil prices since July 2014 and this led to the decline in the country's foreign reserves, currency problems, government income, and even the possibility of defaulting on debt payments when they are due. The price of oil fell by a staggering 64.5% between 2013 and 2016. Oil was not Nigeria's main source of income. Instead, the country has always relied on agricultural exports to keep its economy going. Between 1960 and 1966, more than 90% of the population worked in agriculture, which was the main source of income for the country. But due to the advent of oil boom in the 1970s, mining and, oil seemed more important than agriculture and this placed agriculture in the state of relegations and disarrays. However, since 1970s till date, Nigeria’s GDP was mostly supported by oil profits (around 59%). Despite this, oil prices are subject to fluctuations and this can have impacts on the growth of national economy, therefore, it is essential to look at how these changes might influence Nigeria's economy owing to the volatility of crude oil prices. In view of the above, this paper used analytical approach to review; crude oil and oil price in Nigeria, Nigerian’s economic growth in the context of oil price volatility and Dutch disease syndrome.