Abstract

The study investigated the factors that determine domestic energy expenditures in Nigeria. The price of the premium motor spirit PMS was used as a proxy for the domestic energy expenditure while oil output, oil importance, inflation, and exchange rate are sed as other independent variables. The model was analyzed using the Auto-regressive Distributed Lag method and the result confirms the existence of the long-run relationship between domestic energy expenditures and the determinants. Findings from the studies underscore the importance of an increase in domestic output of oil and a reduction in the importation of oil as the main drivers of the expenditure on domestic energy in Nigeria. The remaining recommendation is that the Government of Nigeria should endeavor to increase the domestic production of refined oil in Nigeria and reduce the importation of fuel to reduce expenditure on domestic energy in Nigeria.

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