Domestic fuel price and the Nigerian macroeconomy

摘要: This study examined empirically a one-to-one nexus between domestic fuel price and various macroeconomic variables in Nigeria for the period spanning 1986 to 2011. The adopted both vector auto-regressive (VAR) error correction (VEC) models appropriate analysis. For pairs of that are integrated same order but not co-integrated, VAR model revealed unidirectional causation exist from short term interest rate while pair co-integrated VEC existence causality inflation long run run. recommended serious caution should be taking by government on increase especially an attempt remove subsidy deregulate downstream sector oil industry.