OIL PRICE VOLATILITY AND INFLATION LEVEL IN NIGERIA: AN EXPONENTIAL GARCH APPROACH

Over the years, expenditures of public and private sectors are regulated by activities in oil gas industry. The budget Nigeria is hinged on international price crude any shock affects general country. With quarterly data from period 1981Q1 to 2020Q2, study uses an exponential generalized autoregressive conditional heteroscedasticity approach examine volatility inflation level Nigeria. An augmented Dicky-Fuller unit root test bound cointegration were used for stationarity existence long run association among variables respectively. found that negative shocks real level. Also, it was observed aside volatility, interest rate gross domestic product volatilities affect therefore recommends other things policies meant diversification Nigerian economy areas like industries agriculture should be adopted reduce high