Acta Universitatis Bohemiae Meridionalis, Vol 21, No 1 (2018), DOI 10.1515/acta-2018-0001, ISSN 2336-4297 (online) DOI: 10.1515/acta-2018-0001 © Copyright by Faculty of Economics, University of South Bohemia in České Budějovice The Influence of Oil Price Volatility on Selected Macroeconomic Variables in Nigeria David Umoru, Ph.D, Sylvester Ohiomu, Ph.D, Richard Akpeke 1 Abstract The paper analyses the influence of oil price volatility on Exchange Rate Variability, External Reserves, Government Expenditure and real Gross Domestic Product using the methodology of Vector Auto- Regressive (VAR) to carry out regression analysis, impulse response function and factor error variance decomposition for robust policy recommendations. The results of the research show that unstable oil price exerts varying degrees of deleterious effect on exchange rate variability, external reserves, Government expenditure and real gross domestic product (GDP). Based on the findings of the study, we recommend the need for the country to branch out its revenue sources. This will further shield the dangle effect of the fluctuation in prices of oil. Serious policy attention should be attached to agricultural reformation, industrial policy drives, mines and mineral development to diversify Nigeria’s economy following the downward slide in the oscillations in oil prices to address the problem of excessive dependence on crude oil exportation. This will help to achieve sustainable growth and development in Nigeria. 1 David Umoru, Ph.D. Department Of Economics, Edo University, Iyamho, Edo State, Nigeria Sylvester Ohiomu, Ph.D. (Corresponding Author) Department Of Economics, Edo University, Iyamho, Edo State, Nigeria, email: ohiomu.sylvester@edouniversity.edu.ng Richard Akpeke Email: richardakpeke@yahoo.com