Oil Price Hike and the Nigerian Economy

The study sought to determine the effect of oil price hike on the prices of products from the non-oil sectors in the Nigerian economy. Input-output analysis was used to show the interdependence between the various sectors of the Nigerian economy as well as the price changes in the different sectors occasioned by oil price changes. The population consisted of all the thirty-two (32) industrial sectors of the Nigerian economy. Z test for population proportions was used to test for significance of the price changes while Chi-Square was used to test for independence between price changes in the non-oil sectors of the Nigerian economy and the oil sector. Research findings indicated that increases in the prices of petroleum products have direct significant impact on transport fares and indirect significant impact on prices of products from the non-oil sectors. The need for policy makers to invest in the provision of adequate infrastructural facilities as well as guarantee enhanced earnings for the generality of Nigerian workers were suggested, among others; to ensure that oil earnings , as obtained in major oil exporting countries, translate to economic development in the true sense.