This study investigates the effects of petroleum income on the Nigerian economy for the period 2000 to 2009 using the gross domestic product (GDP), per capita income (PCI), and inflation (INF) as the explained variables, and oil revenue, petroleum profit tax/royalties (PPT\R), and licensing fees (LF) as the explanatory variables. The sample covers all the economic sectors of the country, including the oil sector and the non-oil sector. This study relied mostly on secondary data from Central Bank of Nigeria’s Statistical Bulletin, Nigerian National Bureau of Statistics, and the Nigerian national Petroleum Corporation. Simple regressions models and Statistical Package for Social Sciences were used in this study to evaluate the data collected. The results show that oil revenue has a positive and significant relationship with GDP and PCI, but a positive and insignificant relationship with INF. Similarly, PPT/R has a positive and significant relationship with GDP and PCI, but a negative and insignificant relationship with inflation. It was also found that LF has a positive but insignificant relationship between GDP, PCI and INF, respectively. Based on these findings, this study concludes that petroleum income (oil revenue and PPT/R)has positively and significantly impacted the Nigerian economy when measured by GDP and PCI for the period 2000 to 2009. This study therefore suggests that the effect of petroleum income on the Nigerian economy was positive for the period reviewed

This study investigates the effects of petroleum income on the Nigerian economy for the period 2000 to 2009 using the gross domestic product (GDP), per capita income (PCI), and inflation (INF) as the explained variables, and oil revenue, petroleum profit tax/royalties (PPT\R), and licensing fees ...