The article explores how oil price shocks affect economies with a lot of resources and suggests ways to handle them. It shows that when oil prices go up, it can impact things like output and inflation. The study also finds that the central bank needs to consider more than just output and inflation when responding to oil price shocks. In Nigeria, oil shocks mainly affect output, not inflation, due to how oil prices affect domestic prices. The Central Bank of Nigeria faces a tough choice between stabilizing output or inflation during an oil price shock. Overall, the study highlights the complexities of dealing with oil price shocks in resource-rich economies.