The effect of global commodity price fluctuations on Nigeria’s economy: Evidence from NNPC (2000–2020).
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study :
Global commodity price fluctuations have profound implications for economies that are heavily dependent on primary exports. In Nigeria, the Nigerian National Petroleum Corporation (NNPC) plays a pivotal role in managing the country’s oil revenues, which constitute a major portion of national income. Between 2000 and 2020, Nigeria has experienced significant volatility in global oil prices, directly impacting government revenue, foreign exchange earnings, and overall economic stability (Ibrahim, 2023). These fluctuations affect investment decisions, fiscal planning, and balance-of-payment dynamics. The study examines how price shocks—both upward and downward—affect the performance of the NNPC and, by extension, the Nigerian economy. It explores transmission mechanisms, such as budget deficits and inflationary pressures, that arise from price volatility. In addition, the research considers the role of global market trends and geopolitical events that influence commodity prices and their subsequent impact on economic policy formulation. The analysis incorporates empirical data, historical trends, and policy responses to provide a comprehensive evaluation of the resilience of Nigeria’s economy amid external shocks (Adebola, 2024; Chukwuma, 2025).
Statement of the Problem
Despite various policy interventions, Nigeria’s economy remains vulnerable to global oil price volatility. Fluctuations in commodity prices have led to unpredictable revenue streams for the NNPC, resulting in budgetary uncertainties and economic instability. These price shocks contribute to inflation, reduced public investment, and depreciating currency values. The challenge lies in bridging the gap between policy design and the actual mitigation of these external shocks. This study investigates the impact of commodity price fluctuations on economic stability and seeks to identify measures that can buffer adverse effects on the national economy (Ibrahim, 2023).
Objectives of the Study:
To evaluate the impact of global commodity price fluctuations on Nigeria’s economic performance.
To analyze the response mechanisms of the NNPC to price volatility.
To recommend policy measures to mitigate adverse effects.
Research Questions:
How do global commodity price fluctuations affect Nigeria’s economy?
What strategies does the NNPC employ to manage price volatility?
What policy interventions can enhance economic stability amid price shocks?
Research Hypotheses:
H1: Global commodity price fluctuations significantly affect Nigeria’s economic performance.
H2: Inefficient response mechanisms at the NNPC exacerbate economic instability.
H3: Comprehensive policy interventions can mitigate the adverse effects of price volatility.
Significance of the Study
This study is significant as it provides a detailed evaluation of the effects of global commodity price fluctuations on Nigeria’s economy through the performance of the NNPC. The findings will inform policymakers about vulnerabilities in revenue generation and economic planning, guiding the development of robust strategies to enhance economic resilience. Improved management of price volatility will contribute to more stable economic growth and fiscal sustainability (Chukwuma, 2025).
Scope and Limitations of the Study:
Limited to the topic only.
Definitions of Terms:
– Commodity Price Fluctuations: Variations in the market prices of primary commodities.
– NNPC: The Nigerian National Petroleum Corporation responsible for oil revenue management.
– Economic Stability: The capacity of an economy to maintain steady growth and low volatility.
Related Project Materials
An Assessment of Women’s Political Participation and Representation: A Case Study of Lafia Local Government Area, Nasarawa State
Chapter One: Introduction
1.1 Background of the Study...
The role of vocational education in enhancing innovation and creativity among undergraduates in Shiroro Local Government Area, Niger State
Background of the study
Innovation and creativity are indispensable in today’s competitive academic and industrial l...
The Role of Tax Literacy in Improving Compliance Among Nigerian SMEs: A Case Study of Lagos-Based Enterprises
Background of the Study
Small and Medium Enterprises (SMEs) are critical drivers of economic growth and jo...
An Appraisal of Constitutional Law and Freedom of Information: A Study of Zaria Local Government Area, Kaduna State
Background of the Study
The right to information is a key element of democrati...
PSYCHOLOGICAL EFFECT OF CONFLICT/VIOLENCE ON WOMEN AND CHILDREN
ABSTRACT
This study was carried out to examine the psychological effect of conflict/violence on women and child...
Optimization of Mobile-Based Homework Submission Systems in Secondary Schools in Gusau Local Government Area, Zamfara State
Background of the Study
Mobile-based homework submission systems have emerged as a popular solution for facilitating the su...
EXAMINATION OF DEMOCRACY AND POLITICAL CRISIS IN NIGERIA
ABSTRACT
The return to democracy in Nigeria in 1999 ushered in some form of political reforms, particul...
Analysis of the Role of Augmented Reality in Enhancing Military Training in Nigeria Defence Academy, Kaduna, Kaduna State
Background of the Study
The integration of advanced technologies in military training has become increasingly vital in pre...
IMPACT OF PROBLEM SOLVING AND DISCOVERY STRATEGIES ON ATTITUDE, RETENTION AND PERFORMANCE IN GENETICS CONCEPTS AMONG SECONDARY SCHOOL STUDENTS
Introduction
Science education is an indispensable tool for national development because the economic and political stre...
The effect of population density on waste disposal practices in Jalingo Local Government Area, Taraba State
Background of the Study
As urban populations grow, effective waste management becomes a critical issue for local governments. In Jalingo...
