An Econometric Assessment of the Nexus Between Cost Optimization and Oil Revenue in Nigeria's Oil and Gas Industry

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.