Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between oil price volatility and non-oil revenue growth has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of the Federal Capital Territory, Abuja where operating conditions differ markedly from more developed markets.

Within the context of the Federal Capital Territory, Abuja, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of oil price volatility on non-oil revenue growth, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on oil price volatility, there remains limited consensus on the precise nature of its relationship with non-oil revenue growth, particularly within the Federal Capital Territory, Abuja. Many organizations continue to make decisions about oil price volatility without a clear, evidence-based understanding of how those decisions ultimately affect non-oil revenue growth. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Oil Price Volatility on non-oil revenue growth in the Federal Capital Territory, Abuja.
2. To assess the extent to which oil price volatility influences non-oil revenue growth within the study area.
3. To identify the challenges associated with oil price volatility in relation to non-oil revenue growth.
4. To recommend strategies for optimizing oil price volatility in order to improve non-oil revenue growth.

1.4 Research Questions

1. What is the effect of oil price volatility on non-oil revenue growth in the Federal Capital Territory, Abuja?
2. To what extent does oil price volatility influence non-oil revenue growth within the study area?
3. What challenges are associated with oil price volatility in relation to non-oil revenue growth?
4. What strategies can be adopted to optimize oil price volatility in order to improve non-oil revenue growth?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around non-oil revenue growth. For managers and practitioners within the Federal Capital Territory, Abuja, the study provides practical insight into how oil price volatility can be better managed. Finally, it contributes to the academic literature on economics by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this study confines itself to the Federal Capital Territory, Abuja, focusing specifically on how oil price volatility relates to non-oil revenue growth within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.