Abstract
This study investigated the activities surrounding crude oil and its impact on the economic performance of Nigeria. Therefore, some economic variables surrounding crude oil in Nigeria was analysed. Most multivariate economic variables suffer the problem of multicollinearity, though often not tested or sometimes ignored by researchers. The presence of multicollinearity among predictor variables often leads to bias estimate. In this study, explorative data analyses were conducted on the data of petroleum variables and gross domestic product and modelled using the Cobb-Douglas Production Function. Multicollinearity was detected in the full model and corrected. The results showed that Real Gross Domestic Product (RGDP) have a significant positive relationship with crude oil Revenue and petroleum to GDP in the full model. The crude oil consumption, and Petroleum to GDP significantly impact the RGDP in the reduced model. Based on the findings of this study, it is recommended that the government implement policies to preserve and manage the oil sector effectively to encourage international trade and increase revenue at the same time make petroleum products available for local use in line with sustainable development goals (SDGs) 7, to ensure that there is affordable, sustainable and modern energy for all by 2030.