Energy Consumption and Economic Growth in Nigeria, 2015

ABSTRACT

This research investigates the relationship between energy consumption and the Nigerian economy from the period of 1980-2014. GDP represents economic growth, which in this research work is taken as the dependent variable and energy consumption as the independent variable. The power sources used to test this relationship were coal, electricity, crude oil and gas which were referred to as energy
and as independent variables. By applying the econometric technique of ordinary least squares (OLS), the results derived infer that there exists a positive relationship between the current period of power consumption and economic growth. But it found a negative relationship between crude oil consumption and coal. A positive relationship was recorded between electricity and gas consumption. The implication
of this study is that increase in power consumption is a strong determinant of economic growth in Nigeria’s economy, thus it is relevant that this sector should be given more relevance by properly utilizing or exploiting and diversifying this sector so as to increase the economic growth and development.