Journal of Economics and Development Studies

National Oil Industries and Economic Development: Transnational Econometrics Studies and Proposals for its Applications in Africa’s Largest Economy/Oil Producing Country (Nigeria)
Richard Ingwe

Abstract
Nigeria’s oil industry has been criticized for failing to adequately apply petroleum economics for understanding how to optimize the benefits that could accrue from the natural resource as well as minimize the constraints associate with it. Therefore, it is easy to reckon that such a failure would naturally be extended or applicable to the adoption of econometrics, which is an aspect of economics, itself the major discipline that makes up petroleum economics. The objective of this article is to examine applications of econometrics in Nigeria’s oil industry. We review econometrics applications in the global oil industry to understand the extent to which the subfield has been valuable to the industry as a means of projecting how econometrics could be applied in specific aspects of Nigeria’s oil industry, in particular. We find that econometrics applications in Nigeria’s oil industry have been as scanty and rudimentary as has been petroleum economics, its wider field. We point out some of the many and nearly unlimited areas that the sub-field could be adopted to increase understanding of several aspects of Nigeria’s oil industry.

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