Abstract:
This paper is an exploratory research targeted at government policies on activities of oil sector in Nigeria. The study investigated how oil revenue (GOR), oil subsidies (OS), interest rate (INTR) and exchange rate (EXR) policies of government affected performance (GDPOS) of oil sector. The study was based on ex-post-facto research using secondary data from CBN Statistical bulletin and NNPC monthly report to carry out the research. Analysis was done with the use of time series information covering a nine year - period (2010-2018). Augmented Dickey-Fuller test was conducted to test stationarity of time. The paper used E-views 8.0 to carry out Econometric tests and estimation. Findings revealed that EXR and GOR were positively significant on GDPOS while OS and INTR were negatively insignificant on GDPOS, Also, an R-squared value of 94% and 0.012011 probability of F-statistic were concluded. It was concluded that government policies have significant effect on the performance of oil sector in Nigeria. It was therefore recommended that Nigerian government formulate policies aim at increasing oil revenue to improve its impact on GDP. However due to the negative impact of interest rate on the oil sector's contributions to GDP, it is recommended that government should set low prime lending rates to encourage project financing and should formulate policies to further discourage independent marketers of petroleum products from importation and improve its contribution to the country's GDP.
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