Oil Price Shocks and the Nigeria Economy: A Variance Autoregressive (VAR) Model

摘要: Oil prices have been highly volatile since the end of World War II. The volatility becomes even more serious in recent time. This has implications for economies oil exporting countries, particularly dependent countries like Nigeria. paper examined impact these fluctuations on macroeconomic Using VAR, crude price changes four key variables was examined. results show that significant real GDP, money supply and unemployment. It fourth variable, consumer index is not significant. implies three Nigeria are significantly explained by exogenous variable. Hence, economy vulnerable to external shocks. Consequently, performance will be management become difficult. Diversification necessary order minimize consequences