Evaluation of the Influence of the Oil Industry on Nigeria's Economic Growth

Bachelor of Science Emmanuel Chiziterem Ogbonna

Diplomová práce

Abstract:

This study examines the influence of the oil industry on Nigeria’s economic growth between 2014 and 2023. Using secondary data from the Central Bank of Nigeria and statistical regression analysis, the research evaluates trends in crude oil production, exports, and prices and their impact on the country’s Gross Domestic Product (GDP). The findings indicate a significant decline in domestic crude oil production and exports over the study period, attributed to oil theft, infrastructure deficits, and regulatory challenges. Additionally, the study highlights the volatility of crude oil prices, influenced by global supply-demand dynamics, geopolitical tensions, and economic disruptions such as the COVID-19 pandemic. The analysis reveals a declining contribution of crude petroleum and natural gas to Nigeria’s GDP, with a statistically significant negative relationship between crude oil exports and economic growth. In contrast, the non-oil sector has shown steady growth, reinforcing the importance of economic diversification. The research supports the resource curse theory, emphasizing that heavy reliance on oil revenues leads to economic instability. It also aligns with economic modernization theories, advocating for diversification as a sustainable growth strategy. The study concludes that Nigeria must transition towards a more diversified economic structure to mitigate the risks associated with oil dependency and achieve long-term stability. Future research should explore the role of emerging global trends, such as energy transition and digital transformation, in shaping Nigeria’s economic landscape.

Keywords

Oil industry, Nigeria, Economic growth, Crude oil production, Oil exports, Oil price volatility, GDP, Economic diversification, Renewable energy, Fiscal stability

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 4. 4. 2025

Obhajoba závěrečné práce

• Obhajoba proběhla 28. 5. 2025
• Vedoucí: doc. Ing. Karel Tomšík, Ph.D.
• Oponent: Olesya Maierová, externi

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program:
European Agrarian Diplomacy