MULTISECTORAL ANALYSES OF ENERGY CONSUMPTION AND THE REAL GROWTH OF THE NIGERIAN ECONOMY

MULTISECTORAL ANALYSES
OF ENERGY CONSUMPTION AND
THE REAL GROWTH OF THE
NIGERIAN ECONOMY
Florence Uche Nwafor & Kalu Ebere Ume
Department of Banking and Finance
University of Nigeria, Enugu Campus.
Nsukka, Nigeria
floxynwafor@yahoo.com
ABSTRACT
The impact of energy consumption on
economic growth in Nigeria has remained
and will always remain a topical issue in
finance and economics. This study sought to
evaluate the impact of energy consumption
on the growth of the real sector as well as
the overall growth of the Nigerian economy.
Ex-post facto research designed was
adopted. Auto Regressive Distributive Lagged
Model technique, granger causality test, co
integration test and error correction model
were used as methods of estimation.
Annualised time series data for 37-year-
period, 1980- 2016, collected from
theCentral Bank of Nigeria statistical bulletin
and World Development Indicators were
used. Energy use per capita (ENUPC) was
used as the independent variable while
Accounting and Finance Research Association
electric power consumption, fossil fuel
consumption and inflation rate were used as
moderating variables. Agriculture Gross
Domestic Product (GDPA), industrial sector
gross domestic product (GDPI), commercial
sector gross domestic product (GDPC) and
overall Gross domestic product (RGDP) were
used as the dependent variables. The
research findings show that energy
consumption positively and significantly
impacted on both the real sector growth and
overall economic growth. A feedback
relationship was discovered between
economic growth and energy consumption.
This underscores the relevance of energy
consumption in the growth of the Nigerian
real sector and the overall economy. It is
therefore recommended that priority
attention be given to energy generation and
supply in Nigeria through initiating growth-
oriented and development–focused energy
policies which will meet the increasing needs
of the various sectors and create stable,
consistent and sustainable growth of the
Nigerian economy. Keywords: Real Growth;
Energy Use Per Capita; Agriculture;
Manufacturing; ARDL and Commerce

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