IMPACT OF MACROECONOMIC VARIABLES OF CRUDE OIL PRODUCTION ON THE PRICE (EXCHAMGE RATE), GROSS DOMESTIC PRODUCT (GDP) AND INFALTION RATE.

The project examines the impact of exchange rate, gross domestic product (GDP) and inflation rate on crude oil production in Nigeria over the period of 20 years from 2001 to 2021. The data was transform using the natural logarithm and the normality test revealed that the variables are normally distributed at (p-value>0.05). The result found that the gross domestic product and inflation rate significantly and positively affects the crude oil production in Nigeria while exchange rate is negatively insignificant. The results further indicate that the coefficient of multiple determination R-squared value was 0.584. this implies that all the independent variables (exchange rate, gross domestic product and inflation rate) account for about 58.4% of the variation in Nigerians crude oil production rate, while the remaining 41.6% is explained by other variables which were not captured by the model. The diagnostic tests revealed that the absence of heteroscedasticity and multicollinearity while present of positive serial correlation. The project concluded that the gross domestic product and inflation rate both have positive impact on crude oil production and therefore, are the major determinants of crude oil production in Nigeria within the period under investigation. These project therefor recommends