The Effect of Oil Price Fluctuation on the Financial Performance of Quoted Manufacturing Companies in Nigeria

Akan David Chucks (FCA, Ph.D.)

Department of Accounting, Faculty of Management Sciences, Dennis Osadebay University


Ewiwile Stephen (Ph.D.)

Department of Accounting, Banking & Finance, Faculty of Management Sciences, Delta State University, Abraka – Delta State, Nigeria


The study looked into the consequence of unstable fuel values on the financial output of the Manufacturing companies. The data was compiled from the CBN bulletin, the World Bank report, and the Annual Report of Oil Producing Exporting Countries for the years 1984 to 2019. Ex post facto research was used in this study. The stationarity status of the selected data was tested using the unit root test. The data with unit root issues were detrended. The connection between petroleum products and the financial output of Nigerian manufacturing businesses was investigated using the granger causality test. Fuel rate fluctuations were the only product that had a link with the Nigerian industrial businesses. As a consequence, linear regression was utilized to examine fuel changes and Nigerian manufacturing company performance. The findings showed a noteworthy link between the vicissitudes in the cost of fuel and the financial output of Nigerian manufacturing enterprises. The recommendations given as a result of this finding include the government should reduce fuel costs because the grunt of the upsurge is passed on to consumers, thereby increasing the impoverishment of the Nigerian people.


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