This study investigated the effect of oil price volatility on economic growth in Nigeria over the period 1990 to 2024 using crude oil revenue, oil export revenue, non-oil revenue and pump price of fuel were used to proxy petroleum revenue while fiscal balance was used as a stand in for fiscal stability. Data were obtained from the World Banks World Development Indicator (WDI), and Central Bank of Nigeria (CBN) statistical Bulletin 2024 using the Augmented Dickey-Fuller unit root test, and Autoregressive Distributive Lag (ARDL). The results indicate the existence of a long-run relationship between petroleum revenue and fiscal stability according to the bound test. Further findings revealed that crude oil revenue has a positive and significant relationship with fiscal balance while non-oil revenue reported a negative but significant relationship with fiscal balance in the long-run. However, oil export volume and pump price of fuel are both insignificant and negatively related with fiscal balance in the long-run. It was concluded that petroleum revenue had a considerable impact on fiscal stability in Nigeria according to the F-Statistics. It was recommended amounts other that the Budget Office of the Federation should adopt stricter fiscal rules that link expenditure to long-term oil price benchmarks rather than short-term price increases. This will prevent procyclical spending and ensure that gains from rising oil prices translate into improved and sustainable fiscal balance.