Abstract
This study examines oil revenue volatility and institutional frameworks on macroeconomic performance in Nigeria using data spanning from 1996 to 2022. The study investigates the relationships among oil revenue, institutional quality and Real GDP. The findings reveal several key insights crucial for economic policymaking.
Firstly, there is a significant positive relationship between oil revenue and Real GDP in the short run emphasizing the importance of adopting sensible budgetary measures to handle oil revenue for economy improvement. Also, this study found the relationship between corruption and Real GDP to be negative in both short and run long highlighting the need for enacting effective anti-corruption laws.
However, the relationship between rule of law and Real GDP is found to be insignificant, suggesting the need for further exploration. Overall, the study underscores the importance of fiscal measures, long term financial planning, institutional reforms and diversification reforms and diversification strategies to mitigate oil revenue volatility, combat corruption promote sustainable economic growth. The study concludes that enhancing institutional quality is paramount for harnessing oil revenue for long term development in Nigeria
