Crude Oil Price, Monetary Policy and Output Performance of African Oil Producing Countries

The study investigated the nexus between crude oil price, monetary policy and output performance of the African oil producing countries between 1980 to 2017. The countries covered are Nigeria, Angola, Algeria, Libya, Egypt, Equatorial Guinea, Congo Republic, Sudan and Gabon. The GDP growth rate is used to measure output performance while interest rate, money supply ratio to the GDP, exchange rate, inflation rate and oil price are used as the predictors in the panel model. Panel data analysis is applied and the fixed effects result shows that oil price is an important external factor affecting the output performance of this country and monetary policy is shown as vibrant policy that can influence the output of these countries. However, findings from the study failed to support currency devaluation as means of promoting the output performance of these countries as it aggravates inflation, which also showed a significant negative impact on the output performance of the country.