Empirical analysis of energy consumption behaviour An input to an effective energy plan in Nigeria

Abstract

Shortages in commercial energy (gas, fuel oil, electricity and kerosene) supplies have become increasingly marked in Nigeria, and this has been graphically illustrated by incessant power failures. Primarily such shortages have been created by unprecedented increases in energy use derived from the growth in demand for consumer goods such as electrical equipment and motor vehicles, in addition to a huge expansion of the services sector and light manufacturing following the oil boom of the 1970s. The long-run implications of such demand increases were not fully appreciated or adequately forecast because of the general feeling that Nigeria had the privileged position of being a net oil exporter and producer of gas. However, the reality of energy shortages has led to the consequences of lost output and restrictions placed upon the further expansion of the service sector. With little hope of a short-run solution to the problem, a long-term view needs to begin by acquiring a comprehensive knowledge of the energy consumption behaviour of the household sector as an input into a more wide ranging energy plan for the country. This article focuses on how such knowledge can help achieve this objective.