This study examined the effect of monetary policy on the pricing of petroleum products in Nigeria using annual secondary data from 1980 to 2014. This is imperative because the fluctuation in the pricing of petroleum products in the world market has led to the growth or decline in the economic performance of major oil producing economies of the world. It is also a known fact that a favourable price of petroleum products brings about a rise in human welfare of citizens. In an attempt to achieve the broad objective of this study, an econometric model was formulated to capture the relationship between monetary policy and petroleum products pricing. The data for the analysis of the model were collected from secondary sources to include the Central Bank of Nigeria (CBN) Statistical Bulletin and National Bureau of Statistics. Ordinary least square multiple regression approach was adopted for the estimation of the regression model formulated and the result of the model was facilitated using the Econometric View (E-View). From the result of analysis presented in chapter four, the study established that money supply exerts a significant positive impact on the pricing of petroleum product in Nigeria. It was also established that exchange rate exert a significant negative impact on the pricing of petroleum product. However, interest rate fails to show any impact on the petroleum product in Nigeria. Among others, the study recommended the need for diversification of the economy from oil export to the non-oil export.
TABLE OF CONTENTS
CHAPTER ONE – INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Justification of the Study
1.6 Sources of Data and Methodology
1.7 Scope and Plan of the Study
CHAPTER TWO – LITERATURE REVIEW
2.1 Conceptual Review
2.1.1 Oil price
2.1.2 Meaning of Monetary Policy
2.1.3 Objectives of Monetary Policy
2.1.4 Instruments of Monetary Policy
2.2 Theoretical Review
2..2.1 The Classical Theory on Monetary Policy
b) The Keynesian Theory on Monetary Policy
2.2.2 J-Curve hypothesis
2.3 Empirical Review
CHAPTER THREE – RESEARCH METHODOLOGY
3.1 Nature and Sources of Data
3.2 Model Specification
3.3 A priori Expectation
3.4 Research Hypothesis
3.5 Method of Analysis
3.6 Decision Criteria
CHAPTER FOUR – PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction
4.2 Presentation of Data
4.3 Presentation of Regression Result
4.4 Interpretation of Result
CHAPTER FIVE -SUMMARY, CONCLUSION, AND RECOMMENDATIONS
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX
