Crude Oil Price Fluctuations and Manufacturing Sector Performance in Nigeria (1981 - 2019)

Babatunde Adekunle OKUNEYE1, Peter Olugbenga OLUWO2,
1Department of Economics, Faculty of Social Sciences, Olabisi Onabanjo University, Ago-Iwoye ,Ogun State, Nigeria
2Department of Economics, College of Management and Social sciences, Education, Lagos State University of Education (LASUED), Lagos State, Nigeria
Okuneye, B. A., Oluwo, P. O. (2023). Crude Oil Price Fluctuations and Manufacturing Sector Performance in Nigeria (1981 - 2019). Izvestiya. Journal of Economics, Management and Informatics, 67 (2), p. 139 – 152.
Nigeria’s high import of manufactured products and the weak export of processed goods are indications of the palpable weakness of the sector. The paper examines the response of manufacturing performances to crude oil price fluctuations in Nigeria and considered annual data in Nigeria from 1981 to 2019. The paper evaluates fluctuation in crude oil price in relation to manufacturing sector performance in Nigeria. Hence, the need to find solution to the crude oil price fluctuations becomes inevitable. The data set was estimated using dynamic ordinary least square (DOLS) as the series is a mixture of me (0) and me (1). However, ex post facto research design was employed to realize the first objective. Phillips Perron and Bounds test were carried out to evaluate the F-statistic against the critical values. The results show that physical investment had negative value (-0.0466) and was significant at (1%) on manufacturing performance; also oil price fluctuations had negative value (-0.1399). Therefore, policy makers need to engage the Governments to create enabling environment and regulate the distortions in the crude oil price for manufacturing sector.
Keywords: Dynamic Ordinary Least Square, Manufacturing Sector Performance, Crude Oil Price Fluctuations, and Physical Investment
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