The Impact of Revenue Generation and Oil Exploration on Economic Growth in- Nigeria (1981-2022)

This study investigates the relationship between oil revenue, oil exploration, and economic growth in Nigeria from 1981 to 2022. Data employed for analysis were obtained from Central Bank of Nigeria statistical bulletin published in 2023, World Bank, International Energy Agency and National Bureau of Statistics (NBS) (2023). Using annual time-series data and advanced econometric techniques, including cointegration, Vector Error Correction Model (VECM) and regression analysis, the study reveals significant positive correlations between GDP growth and oil revenue, oil exploration, investment, and trade openness. Conversely, oil price volatility negatively impacts GDP growth. The findings suggest that oil revenue and exploration play crucial roles in driving economic growth, while investment, trade openness, and exchange rate stability also contribute to economic expansion. The study recommends policy interventions to diversify revenue streams, promote fiscal discipline, stabilize oil prices, and foster trade relationships. Addressing oil price volatility through hedging, diversification, and strategic reserves is also essential. Furthermore, investing in human capital development, innovation, and infrastructure is critical for driving economic diversification and sustainable growth.