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The impact of oil price shocks on the economy has occupied the attention of researchers for almost four decades. Majority of studies support the existence of a negative association, while some recent evidences seem to have popularised the view that outcomes are the artefacts of misspecified functional forms. This study, although similar in spirit to this popular opinion, is, however, distinct in a number of ways. Firstly, unlike most Nigeria-specific studies, this paper explores alternative measures of oil price shocks, which have been developed and used in the literature with a view to ascertaining the extent to which conclusions about the oil price-growth association depend on the definition of shocks adopted. More importantly, this, to the best of our knowledge, is a pioneer attempt at introducing threshold effects into the linkage between oil price shocks and output growth in Nigeria. The relatively recent regime-dependent multivariate threshold autoregressive model, together with the characteristic impulse response functions and forecast error variance decomposition, is adopted in this study. Using quarterly data spanning 1985-2008, a non-linear model of oil price shocks and economic growth is estimated. Our main results indicate that oil price shocks do not account for a significant proportion of observed movements in macroeconomic aggregates. This pattern persists despite the introduction of threshold effects. This implied the enclave nature of Nigeria's oil sector with weak linkages. Therefore, the need to spend oil revenue productively is imperative if favourable effect on real output growth is envisaged. [ABSTRACT FROM AUTHOR]

The need for economic development has preoccupied policymakers over the years. Especially the global south such as Nigeria, which is plagued with infrastructural deficit and less foreign direct investment and financial development attraction. This has drawn the attention of stakeholders and government officials for exploration of alternative routes for sustainable development, which is in line with the United Nations Sustainable Development Goals‐8 (UNSDG's). Thus, the current study focuses on the FDI‐led economic growth hypothesis if it holds or not for the case of Nigeria. The present study is distinct from previous studies in terms of scope by incorporation of more covariates, which has seemed to have been overlooked in the FDI argument. To this end, the current study re‐investigates the connection between FDI, financial development, total labour force, gross capital formation, and economic growth using Nigeria as a representation for Africa and Sub‐Saharan states specifically. Annual time‐series data from 1970 to 2018 is adopted for the econometrics analysis. Our study interest variables are foreign direct investment, economic expansion (GDP). The present study inculcates two additional financial development indicators; from the banking, and financial sectors. Using a battery of unit root and stationarity tests the study explores the stationarity properties of the outlined variables. Subsequently, the novel and recent robust Bayer and Hanck (2013) combined cointegration test in conjunction with Pesaran's ARDL bounds test was used to investigate the equilibrium relationship and regression analysis. While the Toda‐Yamamoto Granger causality was used to detect the direction of causality analysis among the variables. Empirical investigation traces a long‐run equilibrium relationship among the variables over the sampled period. Furthermore, empirical results show that FDI influences GDP, which suggests that FDI influences economic growth which is indicative of policymakers. Similarly, empirical outcomes establish a significant relationship between GDP and Financial Development from banking‐sector which is also corroborated in the causality results as an indirect causality is seen running from GCF to the financial sector. These outcomes suggest that FDI and Financial development are good predictors for sustainable economic growth in Nigeria. All aforementioned results have its inherent policy implications which are elucidated in the concluding remark of this study. [ABSTRACT FROM AUTHOR]

The preoccupation of this study is to investigate the dynamic impacts of crude oil price on the economic growth of Nigeria. The technique of estimation used in this study is the structural vector autoregressive type. This method is applied to articulate the transmission mechanism of macroeconomic effects of domestic price level, economic output, money supply and volatile crude oil price in Nigeria. The study sample covers the period between 1985 and 2010. The data used are on a quarterly basis. The results of both the impulse response functions and the forecast error variance decompositions indicate that domestic shocks are responsible for a reasonable portion of crude oil price fluctuations. Although crude oil price volatility has significant positive impacts on economic output, however, money supply shocks are the main cause of gross domestic product fluctuations. This study concludes that crude oil price has very important impact on the Nigerian economy and the monetary policy is the channel through which this impact transmits. [ABSTRACT FROM AUTHOR]

The central objective of this work was to test and determine the causality between the selected economic indicators such as trade, FDI, Oil Price and GDP in Nigeria and make a recommendation for a timely policy framework for the betterment of the Nigerian economy. Using Nigerian annual data of 1970–2018 with the application of Granger causality test, we found a unidirectional causality that runs from Oil Price to both FDI and trade and from FDI to trade. There was no causal effect transmitting from either trade to Oil Price or trade to FDI. Also, there was no transmission of causality from GDP growth to any of the selected indicators. Our findings expose the heavy influence of oil via price on the economic performance of Nigeria. This could justify the claim that there is a positive relationship between Oil Price and growth. Hence, supporting the findings that FDI is attracted by the availability of oil and the FDI will turn around influenced the rate of trade via trade openness. This will create avenue for a virtuous economic growth circle if policy implication is managed well. [ABSTRACT FROM AUTHOR]