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Original Research Article

AN ECONOMETRIC ASSESSMENT OF THE NEXUS BETWEEN COST OPTIMIZATION AND OIL REVENUE IN NIGERIA'S OIL AND GAS INDUSTRY

NKAMA ANYA ETA

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NKAMA ANYA ETA Corresponding Author

University of Lagos

Correspondence: anyason.nkama@gmail.com

Received
12 Jun 2026
Published
10 Jul 2026

Abstract

This study examined the impact of cost optimization on revenue generation in Nigeria’s oil and gas industry using econometric techniques. The persistent volatility in global oil prices and inefficiencies in operational cost structures have made cost optimization a critical factor for sustaining revenue growth. The analytical framework of this study is based on econometric methodology encompassing the error correction model of regression analysis using data from 1980 to 2025. The Granger Causality test and cointegration technique were used to analyze the impact of cost optimization strategies in oil and gas industry on oil revenue in Nigeria within the period under review. The findings reveal that effective cost optimization significantly enhances revenue performance, while exchange rate volatility negatively affects oil revenue. The study recommended improved cost management frameworks, technological adoption, and policy reforms in the oil and gas industry to stabilize the oil and gas industry in Nigeria.

Keywords: Cost optimization, Oil revenue, Capital expenditure, Operational Cost, Exchange rate, Crude oil price.

How to Cite

APA

ETA, N. A. (2026). AN ECONOMETRIC ASSESSMENT OF THE NEXUS BETWEEN COST OPTIMIZATION AND OIL REVENUE IN NIGERIA'S OIL AND GAS INDUSTRY. Journal of Contemporary Academic Research and Methodologies, 1(5). https://doi.org/10.5281/zenodo.21299701

MLA

ETA, NKAMA ANYA. "AN ECONOMETRIC ASSESSMENT OF THE NEXUS BETWEEN COST OPTIMIZATION AND OIL REVENUE IN NIGERIA'S OIL AND GAS INDUSTRY." Journal of Contemporary Academic Research and Methodologies, vol. 1, no. 5, 2026. DOI: https://doi.org/10.5281/zenodo.21299701

Chicago

ETA, NKAMA ANYA. "AN ECONOMETRIC ASSESSMENT OF THE NEXUS BETWEEN COST OPTIMIZATION AND OIL REVENUE IN NIGERIA'S OIL AND GAS INDUSTRY." Journal of Contemporary Academic Research and Methodologies 1, no. 5 (2026). https://doi.org/10.5281/zenodo.21299701

References

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ISSN 3139-7247
Tracking ID JCARM_JUN_26_044
Article No. 027
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Article Info
Journal JCARM
Volume Vol 1, No 5
Year 2026
Type Original Research Article
Licence CC BY-NC-SA 4.0
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