ACADEMIA Letters Linkage between Oil Price, Exchange Rate and the Trading Performance of Quoted Industrial Sectors in Nigeria Omowumi Monisola Ajeigbe Phillip Akanni Olomola Central to the economic interest at every national economy is the stability and the favoura- bility of its macroeconomic environment. Therefore, the study of macro-economic factors and their dynamics particularly oil price and exchange rate is fundamental to the successful management of any economy. The rapid pace at which the world system is growing towards becoming a global village recently has made macroeconomic variables that are internally sen- sitive like oil prices and the exchange rates to draw the attention of economic researchers in the recent time than in the past. However, it has been established that the most important macroeconomic factor in the world economy today is the crude oil and it is one of the main natural resources that fuels energy in the world. More so, it is generally admitted that the price of oil has efect on other macroeconomic variables owing to the context that crude oil is central to economic activities; such that it serves as input to the industrial sector, regularly consumed by the households, it serves both as a source of revenue and a consumable to the government; and it remains a global product that often constitutes a source of external positive or negative shock to the national economy. The price of oil is crucial to today’s world economy, taking into consideration that oil is the major internationally transacted good, both in terms of size and price, which have given rise to what some market analysts have termed a hydrocarbon economy. Furthermore, the price of energy-intensive goods and services become apparent to energy prices, of which oil makes up the single most important contributor. The impact of oil price on a country’s economy has been of keen interest to many people, mostly economists and throughout history, oil has played a vital role to shape the development of countries. Therefore, sudden changes in the price of oil have widespread implications for both oil-producing and oil-consuming nations. Academia Letters, June 2021 Corresponding Author: Omowumi Monisola Ajeigbe, ajeigbeo@run.edu.ng Citation: Ajeigbe, O.M., Olomola, P.A. (2021). Linkage between Oil Price, Exchange Rate and the Trading Performance of Quoted Industrial Sectors in Nigeria. Academia Letters, Article 1295. https://doi.org/10.20935/AL1295. 1 ©2021 by the authors — Open Access — Distributed under CC BY 4.0