Energy Consumption Dynamics and Sustainable Growth in Nigeria

Abstract

The paper empirically examined the energy consumption dynamics and sustainable growth in Nigeria using time series data spanning from 1980 to 2020. The major sources of data were from the World Development Index (WDI) and Central Bank of Nigeria (CBN) Statistical Bulletin various issues. In checking the stationary status of all the data engaged, the paper applied modified Ng-Perron unit root test to check the stationary properties of the series, and the results showed that GDP growth rate (GDPgr) was integrated at level (that is I(0)) while electricity consumption (ECNP), coal consumption (CCNP) and petroleum consumption (PCNP) were integrated of order one (that is, I (1)). This justified the application of Autoregressive Distributed Lag (ARDL) model of co-integration, whose results revealed that all series exhibited a stable long run relationship among them. The ARDL bound test result showed that the F-statistics was 4.35, which was greater than the upper bounds critical value of 3.79 at 5 percent level of significant. This further showed that the null hypothesis, which postulated that energy consumption dynamics has no significant impact on sustainable growth in Nigeria can be rejected. Based on the above findings, the paper submitted inter-alia that government should establish a renewable biomass as a supplement to energy sources in order to drive a sustainable growth in Nigeria.