An Econometric Study of the Contribution of Oil Sector to the Standard of Living in Nigeria

This paper delved deeper into the econometric analysis of the extent to which oil revenues has affected standard of living in Nigeria. The study used quasiexperimental research design approach and time series secondary data for the data analysis. The time series secondary data used for the study were tested for stationarity and co-integration and were processed by an E-view for windows econometric packages. The multiple regression results showed a significant and negative relationship between oil revenues and standard of living in Nigeria. The study confirms the existence of growth without development and ‘Dutch disease’ in Nigeria. Our findings and conclusion support the need for the government to be more transparent in accounting and reporting the revenues accruable from oil. In complement of the above, there is need to revisit the revenue allocation formulae and give preference to the grassroots where poverty is more pronounced. More generally, the Nigerian policy makers should focus attention on poverty reduction policies and strategies and embark on even distribution of the national income through wage legislation and taxation.