Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch
<p>Industrializing Nigeria requires steady and affordable energy supply and distribution. Hence, this paper examined Nigeria’s petrol market for evidence of consumers paying above the government approved prices and for evidence of asymmetric response of retail petrol prices to changes in oil p...
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doaj-fa581776fc9e4fe19fabcf1a41f749f72020-11-25T01:56:24ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382018-05-01831751813285Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price WatchJonathan E. OgbuaborAnthony OrjiCharles O. ManassehCynthia A. Nwosu<p>Industrializing Nigeria requires steady and affordable energy supply and distribution. Hence, this paper examined Nigeria’s petrol market for evidence of consumers paying above the government approved prices and for evidence of asymmetric response of retail petrol prices to changes in oil price. National Bureau of Statistics’ (NBS) Petrol Price Watch data was used together with descriptive analysis and an ARDL-ECM model. Overall, we find that even when the product is subsidized, consumers in most states pay above the government approved prices. In addition, we find that both in the short-run and long-run, retail petrol prices in Nigeria respond asymmetrically to changes in oil price. These findings are contrary to Nigeria’s status as an oil-rich country, thereby capturing the stark reality of poor utilization of the country’s oil resources to improve its industrial competitiveness.</p><p><strong>Keywords</strong>: Natural resource; Petrol pricing; Industrialization; Nigeria</p><p><strong>JEL Classifications</strong>: Q31; R32; L11; N17</p>https://www.econjournals.com/index.php/ijefi/article/view/5382 |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Jonathan E. Ogbuabor Anthony Orji Charles O. Manasseh Cynthia A. Nwosu |
spellingShingle |
Jonathan E. Ogbuabor Anthony Orji Charles O. Manasseh Cynthia A. Nwosu Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch International Journal of Economics and Financial Issues |
author_facet |
Jonathan E. Ogbuabor Anthony Orji Charles O. Manasseh Cynthia A. Nwosu |
author_sort |
Jonathan E. Ogbuabor |
title |
Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch |
title_short |
Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch |
title_full |
Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch |
title_fullStr |
Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch |
title_full_unstemmed |
Poor Natural Resource Utilization as the Bane of Industrialization in Nigeria: Evidence from National Bureau of Statistics Petrol Price Watch |
title_sort |
poor natural resource utilization as the bane of industrialization in nigeria: evidence from national bureau of statistics petrol price watch |
publisher |
EconJournals |
series |
International Journal of Economics and Financial Issues |
issn |
2146-4138 |
publishDate |
2018-05-01 |
description |
<p>Industrializing Nigeria requires steady and affordable energy supply and distribution. Hence, this paper examined Nigeria’s petrol market for evidence of consumers paying above the government approved prices and for evidence of asymmetric response of retail petrol prices to changes in oil price. National Bureau of Statistics’ (NBS) Petrol Price Watch data was used together with descriptive analysis and an ARDL-ECM model. Overall, we find that even when the product is subsidized, consumers in most states pay above the government approved prices. In addition, we find that both in the short-run and long-run, retail petrol prices in Nigeria respond asymmetrically to changes in oil price. These findings are contrary to Nigeria’s status as an oil-rich country, thereby capturing the stark reality of poor utilization of the country’s oil resources to improve its industrial competitiveness.</p><p><strong>Keywords</strong>: Natural resource; Petrol pricing; Industrialization; Nigeria</p><p><strong>JEL Classifications</strong>: Q31; R32; L11; N17</p> |
url |
https://www.econjournals.com/index.php/ijefi/article/view/5382 |
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