Impact of energy and economy in Nigeria

Abstract

The shortfall in crude oil production, the major source of energy supply and revenue generation in Nigeria, affects all spheres of activities in the country. Activities like politics, economic, budgeting, infrastructural development, standard of living and foreign exchange reserve. Therefore, it is imperative to address the impact of energy (crude oil source) on the economy of Nigeria. Hence, using a linear regression analysis, this paper first established a link between oil production (main energy source) and oil earnings (economic). By way of calibration, the paper examines the amount of oil per barrel needed to be produced in a year that would guarantee an increase in oil earnings in Nigeria. The paper also suggests measures that would enhance the increase in the production of oil from which the country would be able to earn more revenue. The result show that increasing oil production, will simultaneously increase earning from oil and, consequently, overhaul the various activities mentioned earlier for the well-being of mankind. Keywords: Crude oil, Poverty, Revenue, Energy, CBN