DO PETROLEUM PRODUCT PUMP PRICES INFLUENCE ECONOMIC GROWTH IN NIGERIA: QUANTITATIVE AND QUALITATIVE ANALYSIS

Abstract

The study evaluated petroleum product pump prices and its influence on economic growth in Nigeria using VECM Dynamics Test and Pearson Correlation Coefficient Test. The specific objectives are to: Identify the influence of petroleum product pump prices on output in Nigeria: Examine the relationship between petroleum product pump prices and capital in Nigeria: Evaluate the relationship between petroleum product pump prices and labour in Nigeria. The study used the survey approach, data extracted from the Central Bank of Nigeria annual report from 1980 – 2023 and the administration of the questionnaire. The population of the study was one thousand and forty three (1043). Two hundred and eighty one (281) staff returned the questionnaire accurately filled. The result showed that a 1% increase in the prices of PMS and AGO increased economic growth by 0.014%, 0.038% and 0.018% respectively while AGO is reduced by 0.002%. The findings also indicated: There was significance relationship between petroleum product pump prices and output (p = 0.000); There was significance relationship between petroleum product pump prices and capital (p = 0.000); There was significance relationship between petroleum product pump prices and labour (p = 0.000). The study concluded that petroleum product pump prices have significance relationship with economic growth. The study recommended among others that Government should come up with a controlled price with will reduce price flu auction thereby stabling businesses.