This report examines the intricate relationship between the Nigerian economy and its oil sector, focusing on the influence of the real effective exchange rate (REER) on the demand for Nigerian crude oil exports. The study investigates whether endogenous factors within the Nigerian economy affect the value of oil exports, considering the importance of oil revenues for Nigeria's GDP. The research employs secondary data analysis, including correlation and covariance tests between GDP and REER, and regression analysis to establish the relationship between the variables. The report includes background information on Nigeria's oil production, key economic indicators, and a literature review. The methodology involves analyzing the REER's impact on the oil sector using daily production data as a proxy for export demand. The findings aim to determine if the REER significantly affects the demand for Nigerian crude oil exports, providing insights into the economic dynamics of Nigeria's oil-dependent economy. The study concludes with a discussion of the results and their implications for Nigeria's economic policies.
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