Impact of Energy Consumption on Economic Growth in Nigeria: 1990 – 2023.

Abstract

This research work examined the relationship that exist between energy consumption and economic growth in Nigeria for the period covering 1990- 2023 The paper examined the relationship between energy consumption and economic growth in Nigeria. Taking clue form the basics of this theory, a model was specified using Real Gross Domestic Product as a function of Gross Capital Formation, Labor Force, Per Capita Income, Electricity Consumption, Coal Consumption and Crude Oil Consumption. The study used energy consumption secondary data readily available from Central Bank of Nigeria Statistical Bulletin, the study conducted a unit root test to ascertain the stationary status of the data series, while co-integration technique was used to test for the relationship between the variables in the model. Finally, a linear regression analysis was conducted using error correction model (ECM) method. In light of the test and regression analysis conducted covering a study period of 25years (1990-20235), the following are the major findings. There is a positive and significant relationship between Real Gross Domestic Products and Gross Fixed Capital Formation, Labor Force, Per Capital Income, Electricity Consumption and Coal Consumption. While Crude Oil Consumption has a negative and non-significant relationship with Real Gross Domestic Products. Government should diversify energy consumption from fossil fuel to renewable one and alternative energy infrastructure should be enhanced through intentional investment.