ABSTRACT
There is no doubt that the oil industry has contributed tremendously to the overall growth of Nigeria's economy. Nigeria is considered the fastest developing country in black Africa. This description of Nigeria would have been impossible if the impact of the oil industry on the Nigerian economy over the last two decades is discounted. Until 1958 when the first oil exports were made totaling 1.8 million barrels oil had no impact on the Nigerian economy. It has been empirically established that the oil producing countries have very high annual growth rates of money supply. It has also been empirically established that Nigeria's growth of money supply is one of the fastest among the oil producing countries. Nigeria's balance of trade for non-oil items has been persistently on the deficit side since 1960. Government revenue in Nigeria is defined to mean the revenue of the Federal Government of Nigeria and those of the 19 state governments of Nigeria.
