A Study on the Impact of Energy Consumption on the Nigerian Economy

Abstract

This study evaluated the impact of energy consumption on
economic growth in Nigeria covering the period of 1981 to 2018.
The objectives of the study were to investigate the impact of energy
consumption on economic growth in Nigeria and to ascertain the
long-term relationship between energy consumption and economic
growth in Nigeria. The study adopted ex-post facto method of
research design, Ordinary Least Square (OLS) regression
technique and Johansen co-integration test in arriving at a
decision. Gross fixed capital formation, electricity consumption,
and crude oil consumption have a positive and significant impact
on economic growth in Nigeria while coal consumption has a
positive but insignificant impact on economic growth in Nigeria
also there exist a long-term relationship between energy
consumption and economic growth in Nigeria. based on the result
of the findings the following recommendations were made;
government should undertake cogent approach towards
improving the electricity supply in such a way that it will lead to
increased industrial production and economic growth respectively.
Government privatization policy of the electricity sub-sector
should be highly monitored to provide enough electricity
generation and consumption to encourage mass employment of
skilled and unskilled labour in the economy. More attention should
be given to the crude oil and coal economy in the country in order
to galvanize the manufacturing sector. This will not only spur the
manufacturing sector but create employments and reduce poverty.
Thus, leading to economic growth and development in Nigeria.