IMPACT OF ENERGY (ELECTRICITY) CONSUMPTION ON ECONOMIC GROWTH IN NIGERIA: 1980 - 2023

Abstract

This study examined the impact of energy consumption on economic growth in Nigeria using time series data for the period of 1980 to 2020. Nigeria is a country blessed with vast energy resources. However, the country has not substantially benefitted economically from this resource. Although, energy consumption leads to economic growth but the indices of economic development speak otherwise. The study adopted the Autoregressive Distributed Lag (ARDL) co-integration model to achieve objectives of the study. The results reveal a significant positive impact of energy consumption (particularly electricity consumption) on economic growth in Nigeria. Therefore, this study concludes that the interplay between energy consumption and economic growth is substantial in Nigeria. More to that, the study recommends that those in authority should strategise more to further enhance energy efficiency and strengthen sustainable energy sources to significantly foster economic development.