As I already noted, asset prices and yields are inherently forward looking and thus may contain information about future economic conditions not evident in other series. Moreover, asset prices, unlike many data series, are available on a timely and continuous basis and are not revised.
Although there is some evidence of diversification, oil maintains an overly dominant position in the Nigerian economy, introducing volatility and posing significant challenges to macro-economic stability. As oil prices increased steadily between 2004 and 2008, Government spending tracked the price of oil, making fiscal policy highly pro-cyclical and adding to this volatility.