GAS PRICE VOLATILITY, INFLATIONARY PRESSURE, AND ECONOMIC GROWTH IN NIGERIA
Abstract
The study examined how gas price volatility and inflationary pressure impact economic growth in Nigeria from 2000 to 2023. Specifically, it investigated the effects of these factors on economic growth during this period. Time series data were collected from the Central Bank of Nigeria Statistical Bulletin, the National Bureau of Statistics Bulletin, and the International Energy Agency gazette. The GARCH regression technique was used to analyze the data. The study found that gas price volatility had a positive but non-significant effect on Nigeria's economic growth. Similarly, inflationary pressure had a positive but non-significant effect. However, the empirical results for carbon dioxide emissions showed a significant negative effect on economic growth in Nigeria. Overall, the F-statistics indicated that gas price volatility, inflationary pressure, and carbon dioxide emissions significantly affect Nigeria's economic growth. It is recommended that the government implement monetary and fiscal policies to control inflation, stabilize gas prices, and promote economic growth.