Volume 2 - Issue 2, March - April 2026

This study examines the nexus between oil price shocks and microeconomic fundamentals, with particular focus on wage dynamics, inflation, energy use, and money supply over the period 1990–2025. The study adopts the Autoregressive Distributed Lag (ARDL) framework to analyse both short-run and long-run relationships among the variables. Empirical results reveal a mixed order of integration, justifying the application of the ARDL bounds testing approach. The bounds test confirms the existence of a long-run equilibrium relationship among the variables. However, the long-run estimates indicate that oil price shocks exert a positive but statistically insignificant effect on wages, while inflation, energy use, and money supply also show weak and insignificant impacts. In the short run, oil price shocks exhibit only marginal influence on wage dynamics, suggesting limited transmission effects to microeconomic fundamentals. Diagnostic and stability tests confirm that the model is wellspecified and stable. The findings imply that although oil price shocks are theoretically important, their direct impact on microeconomic variables is weak, reflecting underlying structural rigidities and policy constraints. The study therefore emphasizes the need for economic diversification, energy sector reforms, and improved policy coordination to enhance economic resilience.

Bello H.T, Chisom Favour Nnamdi, Pedro Robson Datemeye, Afuwape Babatunde Azeez, Oboturi Philip Tega, Emmanuel Oke, Oghenekewe Omoghene Anthonia, Nweke Chibueze Innocent,"The Nexus Between Oil Price Shocks and Microeconomic Fundamentals in Nigeria: Evidence From New Data-Set" International Journal of Advanced Multidisciplinary Research and Educational Development, V2(2): Page(1087-1094) Mar-Apr 2026. ISSN: 3107-6513. www.ijamred.com. Published by Scientific and Academic Research Publishing.