Energy consumption and economic development in Nigeria

Abstract

Purpose: The study investigated the effect of energy consumption and economic development in Nigeria.

Methodology: The data for the study were sourced from the World Bank Database from 1990 to 2023. Following the unit root test, the Toda-Yamamoto Granger Causality or Block Exogeneity Wald was carried out.

Results and conclusion: Principally, no causality exists from access to electricity for the urban population (UPEt), electricity availability to rural populations (RPEt), energy production through renewable sources (EPRt) (hydro), electricity production through non-renewable sources (EPNt), and electric power transmission and distribution losses (EDLt) to per capita income in Nigeria. The findings suggested that enhancements in electricity access and production did not significantly contribute to economic development, as measured by per capita income during the period analyzed.

Implication of findings: The study, among others, recommended that stakeholders in the energy industry in Nigeria should synergize to enhance the provision of a reliable and quality electricity supply instead of merely increasing access. The implication of this finding is that making energy utilization and affordability better will improve the economy.