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September 26, 2025International Journal of Accounting and Economics Studies0 citationsOpen Access

Empirical Analysis of The Dynamic Interplay between Energy‎Consumption and Economic Growth in Nigeria

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KUKelechi Enyinna UgwuCNCharles Odinakachi NjokuAOAnthony ‎Ifeanyi Otuonye

Key Points

  • Coal consumption and labor consumption significantly contribute to GDP per capita growth in Nigeria.
  • In the short run, PMS and electricity consumption showed insignificant effects on economic growth metrics.
  • The Johansen cointegration test revealed no long-run relationship between energy consumption and economic growth.
  • Enhancing electricity consumption through better energy provision is essential for economic growth improvement.

Abstract

The study investigated energy consumption and economic growth in Nigeria using time series data ‎for the period of 1986 to 2024. Energy consumption was measured by PMS consumption, ‎electricity consumption, coal consumption, and labour consumption, while economic growth was ‎measured by GDP per capita. The study used the Error Correction Model (ECM) to achieve its ‎objectives. The Johansen cointegration test showed that there was no long-run relationship ‎between the components of energy consumption and economic growth in Nigeria. In the short run, ‎it was observed that while PMS consumption and electricity consumption had an insignificant ‎effect on GDP per capita, coal consumption and labour consumption were significant to GDP per ‎capita growth. The study therefore recommended that the government should make adequate ‎provision to enhance electricity consumption towards boosting economic growth in the Nigerian ‎economy. This could be achieved if the federal government improves on energy generation, energy ‎transmission, and energy distribution to boost its consumption among economic agents such as ‎households, firms, markets, and the government itself‎.

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Cite This Study

Ugwu et al. (2025) studied this question.

synapsesocial.com/papers/68d6c687b1249cec298b2a02https://doi.org/10.14419/wg2qr846
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