Abstract
This study explores the dynamic relationship between crude oil price volatility and revenue generation in Nigeria over a 41-year period from 1981 to 2021. It encompasses an analysis of key variables, including total revenue (REV), oil price (OPV), oil revenue (ORV), non-oil revenue (NRV), and exchange rate (EXCHR). The study employs the Auto Regressive Distributed Lags (ARDL) model to examine the long-term and short-term impacts of oil price volatility on revenue generation. This study reveals that crude oil price volatility (OPV) failed to exert strong impact on total revenue (REV) in Nigeria in the distance period. Oil revenue (ORV) exhibits a strong and positive influence on total revenue, highlighting its pivotal role in revenue generation. Non-oil revenue (NRV) also significantly contributes to total revenue, emphasizing the importance of diversifying revenue sources. Exchange rate (EXCHR) fluctuations do not significantly predict changes in total revenue. Based on the findings, policy recommendations include diversifying revenue sources, enhancing non-oil revenue collection, effective oil revenue management, promoting economic diversification, strengthening tax infrastructure, and adopting prudent budgeting practices.