The estimated result emanating from the analysis and discussion section of this study indicated that the variables considered in the model are stationary and have long run co-movement. The study showed that increase in exchange rate positively affects the economy, Foreign Direct Investment and Global Oil Price negatively impacts the economy, these variables in the oil sector context do not significantly impact the economy, therefore, changes or movements in these variables do not necessarily prompt the government into deregulating the oil sector. Oil price, Oil Production and Oil revenue positively impacts the economy and these impacts are significant because the expected negative effects of increased inflation and exchange rate and on the economy are being neutralized by these variables.  Therefore, the study concludes that Oil Price, Oil Production and Oil revenue are key variables in the oil sector and greatly affects the Nigerian economy through the policies of subsidy and deregulation with deregulation being more effective because it attracts private investors to the oil sector who compete among themselves, this competition in turn leads to efficiency and increase revenue in the oil sector.  The deregulation policy is also effective in that it increases oil revenue and this is being used in repairing, maintaining and restructuring our refineries and increase their capacity to refine more oil products to meet rising local demand, to increase its export and reduce the importation of oil products.