The impact of COVID-19 on petroleum industry in Nigeria

Abdulganiu Ibikunle, BA

Master's thesis

Abstract:

Nigeria’s oil and gas industry is the biggest in the African continent. With the incidence of the covid 19 pandemic, this industry was shaken on a large scale which brought about the need for this study. The study identified the current situation of the oil and gas industry and looked at how the industry was as at 20years ago. It identified the major export destination of the Nigerian crude oil export and then investigated on the impact which the covid 19 pandemic brought into the oil and gas industry. A regression analysis was done to determine the relationship between the petroleum export of Nigeria and macroeconomic indicators which include covid cases, oil price, balance of payment, population and GDP. Data was collected for the time period of 2001 till 2020 for petroleum export (million USD), covid cases (thousands), oil price (USD/year), balance of payment (million USD/year), population (million) as well as GDP (million USD/year) using OPEC data. Result showed that covid cases, oil price, balance of payment and GDP have a direct (positive) relationship with petroleum export. Furthermore, population has an indirect (negative) relationship with petroleum export. Going further to test for the influence of each factor on petroleum export for the year 2020, result indicated that oil price as its elasticity coefficient as the highest amongst all factors involved in the model for the time period of 2020. The regression model is suitable for forecasting purposes. The government measure and policies to tackle the covid-19 pandemic was also reviewed. The study found out that the covid-19 pandemic severely affects the Nigerian oil and gas industry and the government need to ensure adequate policies are to be implemented and constantly reviewed.

Keywords

Oil price, GDP, Regression, Population, Covid-19, Oil and gas, Petroleum Export

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2022

Thesis defence

• Supervisor: Mgr. Elena Kuzmenko, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management