IMPACT OF ENERGY CONSUMPTION ON ECONOMIC GROWTH IN NIGERIA
Mukhtar Saleh Moriki, Salihu H. Mohammed-Gani, PhD and Henry A. Eggon, PhD
Volume 12 Issue 3
Abstract
This study investigates the impact of energy consumption on economic growth in Nigeria from 1990 to 2023 using time-series data from the Central Bank of Nigeria (CBN), the World Development Indicators, and the International Energy Agency. Employing Augmented Dickey-Fuller (ADF) unit-root tests, Johansen cointegration, and Vector Autoregression (VAR) models, the study explores both short- and long-run linkages among electricity, petroleum, gas, coal, and solar energy consumption and real GDP. Results show that petroleum, gas, and coal consumption exert positive and statistically significant effects on Nigeria’s economic growth, while electricity and solar energy remain positive but insignificant. The long-run cointegration confirms a stable equilibrium relationship between energy consumption and GDP. Policy recommendations emphasise diversification of Nigeria’s energy mix, expansion of renewable-energy infrastructure, and effective regulatory frameworks to ensure reliable energy for industrial and economic transformation. Keywords: Energy Consumption; Economic Growth; Nigeria; VAR Model; Energy Policy; Cointegration.
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