Analysis of the Nexus between Oil Prices, Exchange Rate and Economic Growth in Nigeria

  • Babajide Adesoji Ajayi Anchor University, Lagos, Lagos State, Nigeria
  • Kehinde Oluwole Ola Glorious Vision University, Ogwa, Edo State and UNICAF, Malawi
DOI: https://doi.org/10.58709/niujss.v9i1.1592

Abstract

The study empirically investigated the short and long run interaction effect of oil price cum exchange rate on the Nigerian economy. Data were drawn from Macrotrend.net and World Bank from 1970 to 2020. The interaction effect was examined using Fully Modified Ordinary Least Squares, as well as, Dynamic Ordinary Least Squares. The finding of the study has shown that exchange rate and oil price with the inclusion of interaction term exerted significant impact on economic growth. In addition, exchange rate and oil price have significant impact on economic growth in the short without inclusion of interaction term while it is only oil price that is relevant in the short run with inclusion of interaction term. The study recommended that policy, which will influence both oil price and exchange rate should be put in place.     


Keywords: Oil price, exchange rate, economic growth, Nigeria

Published
2023-03-31
How to Cite
AJAYI, Babajide Adesoji; OLA, Kehinde Oluwole. Analysis of the Nexus between Oil Prices, Exchange Rate and Economic Growth in Nigeria. NIU Journal of Social Sciences, [S.l.], v. 9, n. 1, p. 47-53, mar. 2023. ISSN 3007-1690. Available at: <https://kampalajournals.ac.ug/ojs/index.php/niujoss/article/view/1592>. Date accessed: 13 apr. 2026. doi: https://doi.org/10.58709/niujss.v9i1.1592.
Citation Formats
Issue
Vol 9 No 1 (2023): NIU Journal of Social Sciences, Vol. 9 No. 1, March 2023
Section
Articles

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