ENERGY CONSUMPTION AND ECONOMIC GROWTH IN NIGERIA (1970-2019)

Abstract

This research empirically examines the impact of energy consumption on economic growth in Nigeria for the study periods between 1970 to 2019 employing various techniques of econometric analysis, using macro-economic variables such as RGDP, CO2, EC, EU, GDP. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin, world development index. Meanwhile, the study employs Autoregressive Distributed Lag Model (ARDL) as estimation methods. The results revealed that energy consumption has a significant impact on domestic output in Nigeria while long run relationship is significant at 5per cent level of significance. It also revealed that gross fixed capital formation will negatively and significantly affect gross domestic although the studies of Alege and Ogundipe 2015 revealed that fossil fuel has significant positive impact on gross domestic product in Nigeria. The study recommended that government should provide a friendly macro-economic indicator to boost the real economic growth and consider other macro-economic driver policies within the study period.