Sectoral Consumption of Non-Renewable Energy and Economic Growth in Nigeria

Abstract

Most studies on energy consumption and economic growth are mostly on the relationship between aggregate energy consumption and economic in Nigeria. However, the results of few studies that disaggregate energy consumption could be misleading. They could have identified which sector’s energy consumption contributes more to economic growth in the economy. This study therefore contributes to existing literatures by examining the impact of sectoral consumption of non -renewable energy on economic growth in Nigeria. Descriptive statistics in the form of pie chart and error correction mechanism w ere employed to analyse time series data on non-renewable energy in the form of oil, gas, electricity and coal consumed by industrial sector, agricultural sector, transportsector, commercial and residential sector in Nigeria. The study revealed that the residential sector consumed moreenergy in Nigeria than other sectors. The ECM results further revealed that all the variables contribute significantly to economic growth in Nigeria. But the residential sector was identified to contribute more to economic growth than other sectors. The study finally recommends that, to drive economic growth in Nigeria, policies aimed at encouraging the industrial sector should be formulated and implemented to encourage energy consumption by industrial sector in Nigeria.