Oil Price Shock and Agricultural Productivity: Stylised Evidence in Nigeria

Olabisi Popoola, Alege O. Philip, Obindah Gershon and Kaladede Gift
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Olabisi Popoola: Covenant University, Ota, Nigeria
Alege O. Philip: Covenant University, Ota, Nigeria
Kaladede Gift: Landmark University, Omu-Aran, Nigeria.

International Journal of Energy Economics and Policy, 2022, vol. 12, issue 3, 490-496

Abstract: The oil sector is dominant, as it is the largest exported commodity in Nigeria. However, evidence has shown that Nigeria, as an oil-dependent country, faces frequent oil price fluctuations that have posed greater challenges to Nigeria s agriculture sector, hence affecting agricultural productivity. This necessitates the need to investigate the effect of oil price shocks on agricultural productivity in Nigeria. This study adopted the Hodrick Prescott data filtering approach to check for the fluctuation of oil prices. The result revealed fluctuation in Nigeria oil price from 2018 up until recently. The long-run relationship was established using the SVAR and the normalised equation. The result revealed a negative relationship between agricultural productivity, oil price and real exchange rate. While a positive relationship exist between agricultural productivity, consumer price index and oil production. oil price fluctuations affect most of the variables, however, oil price shock shows more variations across the time for agricultural productivity. To this end, this study revealed that oil price shock has an adverse effect on Nigeria s productivity in agricultural sector. Hence, the government needs to implement a policy and programmes that will serve as oil price shock absorbers in order to sustain agricultural productivity.

Keywords: Oil Price; Shock; Agricultural Productivity (search for similar items in EconPapers)
JEL-codes: B41 J43 Q43 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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