Impact of petroleum revenue and the economy of Nigeria
Social Sciences (Pakistan)
Department of Accounting, Faculty of Management Sciences, University of Port Harcourt, Nigeria; Department of Accounting, Faculty of Business Education, Bayelsa State College of Education, Okpoama, Brass Island, Yenagoa, Nigeria
This study investigates the impact of petroleum revenue and the economy of Nigeria for the period 1970-2009. To achieve this objective, primary and secondary data were used. The primary data was generated from a well structured questionnaires administered to 150 oil and gas and non oil and gas workers in Rivers and Bayelsa states, respectively. The secondary data was culled from the Central Bank of Nigeria Statistical Bulletin 1970-2009. The data collected were analysed using Pearson product correlation coefficient, Ordinary Least Square Regression and descriptive statistics. The results of the analysis suggests that petroleum revenue affects the gross domestic product and per capital income of Nigeria positively. However, the relationship between petroleum revenue and inflation rate was negative. Therefore, the research conclude that the revenue generated from petroleum exploration in Nigeria contributes to the gross domestic product and per capita income, hence proper management and utilization to achieve long run growth and development of the country. Useful recommendations were provided to improve the revenue generation effort and usage of the oil wealth in Nigeria. © Medwell Journals, 2012.