Impact of Petroleum Revenue and the Economy of 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 one hundred and fifty 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 study 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.