The Analysis Of Oil Price Shock In Nigeria (1970-2014)

CHAPTER ONE INTRODUCTION 1.1  BACKGROUND OF THE STUDY Nigeria gained an extra US$390 billion in oil-related fiscal revenue over the period 1971 - 2005 (Budina and Wijnbergen, 2008). What has the nation got to show for this? Despite such windfall, Nigeria has an increasing proportion of impoverished population and experienced continued stagnation of the economy (Okonjo-Iweala and Osafo-Kwaako, 2007). The country, like many other oil-rich countries (ORCs) economically underperforms many resource poor countries (Karl, 2004). Her oil wealth has not been tapped to launch her onto economic height…