This study examines the impact of oil price volatility on economic growth in Nigeria over the period 1990–2024. Anchored on the Real Business Cycle Theory, the analysis captures oil-sector dynamics using oil price volatility, government oil revenue, crude oil price, and oil export volume as key explanatory variables, while real gross domestic product serves as a proxy for economic growth. Data were sourced from the World Bank’s World Development Indicators and the Central Bank of Nigeria Statistical Bulletin (2024). The study employs the Augmented Dickey-Fuller unit root test and the Autoregressive Distributed Lag (ARDL) technique to ensure robust empirical estimation. The findings reveal the existence of a long-run relationship between oil price volatility and economic growth, as confirmed by the bounds testing approach. Empirical results further indicate that government oil revenue and crude oil price exert a positive and statistically significant influence on real gross domestic product. In contrast, oil price volatility shows a positive but statistically insignificant relationship with economic growth, while oil export volume exhibits a negative and significant effect. These results underscore the complex and asymmetric nature of oil-sector dynamics in shaping Nigeria’s growth trajectory. The study concludes that although oil price volatility does not exert a statistically strong direct effect, its broader implications remain substantial for macroeconomic stability. Consequently, it recommends that the Central Bank of Nigeria, in collaboration with the Federal Ministry of Finance, should strengthen macroeconomic stabilization frameworks through the development of sovereign wealth buffers and improved foreign reserve management. Such measures are essential to mitigate the adverse effects of external oil price shocks and promote sustainable economic growth.