Effect Of Oil Export On Balance Of Payment In Nigeria:- Chimezie Ezinne G

ABSTRACT

The paper analyses the effect of oil export on the balance of payment of Nigeria over the period 1981-2018. The objective of this study is to evaluate the effect of oil export on the balance of payment of Nigeria. Export is essentially important in maintaining a favourable balance of payment and growth of any economy generally. Unit root test was used to analyse the stationarity of the variables. Data was sourced from 1981 - 2018 so as to examine the connections between oil sector and the country's balance of payment. From the research carried out using Autoregressive Distributed Lag (ARDL) technique, the result shows that both oil export and exchange rate are positively related to the country's balance of payment. It was therefore recommended that government should consider the introduction of a special stimulus package to encourage investments in the oil sector of the economy, with particular emphasis on the mineral and tourism sectors where huge capital requirement has continued to discourage investment. Keywords: Balance of Payment, Oil Export, Exchange Rate, Comparative Advantage, MacroEconomic Policy.