Energy Consumption In Nigeria Research Articles

IMPACT OF RENEWABLE AND NON-RENEWABLE ENERGY ON FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH

This study examines the impact of renewable and non-renewable energy on foreign direct investment (FDI) and economic growth in Nigeria from 1980 to 2017. The objectives are to assess how renewable energy influences economic growth, FDI, and the interplay between renewable and non-renewable energy. Using techniques such as the Augmented Dickey-Fuller test, Co-integration, and the Auto Regressive Distributed Lag (ARDL) model, secondary data from the World Bank were analyzed, focusing on GDP, renewable energy, non-renewable energy, and FDI. The findings indicate that GDP positively influences renewable energy in the long run, while non-renewable energy has a negative effect. In the short run, non-renewable energy and GDP significantly impact renewable energy, while FDI shows no effect. Recommendations include fostering a stable political environment to attract FDI and providing incentives like subsidies and tax holidays to promote trade and investment in renewable energy. Effective macroeconomic management is essential for translating economic growth into increased renewable energy consumption in Nigeria. KEYWORDS: Renewable Energy, Non-Renewable Energy, Foreign Direct Investment and Economic Growth.

Investigating the determinants of household energy consumption in Nigeria: insights and implications

BackgroundThe present study draws motivation from the United Nations Sustainable Development Goals and explores the nexus between access to modern cooking energy sources, responsible energy consumption, climate change mitigation, and economic growth. Using 2018 demographic and health survey data, the study examines the influence of key socioeconomic and demographic factors on household choice of cooking energy in Nigeria.ResultsThe empirical results show that traditional energy sources are dominant among Nigerian households (74.24%) compared to modern energy sources (25.76%). Regarding energy demographics, male-headed households show more usage of modern energy sources (19.86%) compared to female-headed households (5.90%). Regional analysis reveals that the northwest region predominantly uses traditional energy sources (18.60% of the share of total traditional energy sources), while the southwest region shows the greatest usage of modern energy sources (10.52% of the share of total modern energy sources). Binary logistic regression analysis reveals the positive and statistically significant influence of wealth index, education, and geopolitical region on the likelihood of utilizing modern energy sources. Conversely, household size and place of residence indicate an inverse relationship with the likelihood of adopting modern energy sources.ConclusionsThese findings have important policy implications for energy efficiency, environmental sustainability, and improving the quality of life in Nigeria, which is currently plagued with significant energy poverty, especially in rural communities.

The impact of educational attainment on the transition from nonrenewable to renewable energy use in Nigeria

This paper examines the role of education in promoting renewable energy in Nigeria based on data from 1990 to 2021 using FMOLS second-generation cointegration to estimate two proxies of renewable energy. It also examines how economic growth spurs education as a driver of energy transition and tests the energy mix hypothesis in Nigeria by employing real economic growth and the import of fossil fuels as controllable variables in a model with four education indicators. The results showed that education is vital to Nigeria's renewable energy goals. In contrast to existing studies, the study established that all types of education encourage the move from nonrenewable to renewable energy consumption in Nigeria. However, technical and university education are the most crucial in Nigeria's drive toward the adoption of renewable energy, which implies that Nigeria's energy transformation may require more than general knowledge. The paper also established that to mitigate the influence of Nigeria's low economic growth on its energy transition, a minimum critical level of at least 7% of the per capita income and 7%–9% of higher technical education must be attained consistently. The paper concludes that purchasing power measured by economic growth is more important than education for Nigeria's energy shift. However, education can mitigate the detrimental effects of economic growth on energy transition potential. Therefore, policy to promote energy transition with technical educational development and economic empowerment is needed to achieve Nigeria's energy transformation goal.

Hydroelectric production and energy consumption in Nigeria: Problems and solutions

This study investigates the link between hydroelectric production, energy consumption and sustainable development in Nigeria, analysing time-series data from 1981 to 2018. The Secondary data were culled from World Bank data. The variables used were; Real Gross Domestic Product as the dependent variable, with the independent variables being Alternative and Nuclear Energy, Electricity Production from Hydroelectric Sources, Electric Power Consumption, Gross Fixed Capital Formation, and Labour Force. The cointegration result revealed that the variables have a long-term relationship. The study found that increasing nuclear and alternative energy use by 1 % would result in a 2.74% increase in the actual gross domestic product over time. The study also found that hydroelectric power generation has a substantial negative long-term economic effect on Nigeria's actual gross domestic product. Increasing the use of hydroelectric sources in electricity production by a percentage point would result in a 1.33% increase in the gross domestic product over time. Furthermore, the long-run coefficient of electric power consumption significantly affected real gross domestic product, with coefficients, t-values, and probability values of 0.009175, 6.10, and 0.000, respectively.Therefore, the study recommends that the government take advantage of Nigeria's vast renewable energy resources predominantly available in different parts of Nigeria, provide a conducive environment for investors, strike partnership deals with various organizations, and spur economic growth development in Nigeria.

Energy Demand Reduction for Nigeria Housing Stock Through Innovative Materials, Methods and Technologies

Energy utilisation has recently become a highly sought-after commodity on a global scale. This situation is not limited to Nigeria, where the national grid’s supply of electricity has been severely inadequate. This has hampered the country’s ability to meet the mounting needs of its large population and expanding economy. Aside from the global challenges of rising energy costs and environmental disasters, a number of factors such as a lack of interest in indigenous building technologies and materials have contributed to the Nigerian construction industry’s slow pace of meeting energy demand and achieving energy efficiency. This study investigates the possibility of achieving energy conservation through innovative materials, methods, and technology to increase energy efficiency and minimise energy demand in Nigeria’s residential housing. The objective is to determine the variables that influence energy usage in residential house design, select methods and technologies to reduce energy demand, and assess the best materials and processes. A quantitative approach to data collection was used by distributing questionnaires to respondents in the Minna metropolis. A hundred and forty (140) question- naires were distributed, and 117 of them were returned. Secondary data were obtained from literature reviews, journal articles, and conference papers. According to the findings, the most energy efficient residential buildings would result from the appropriate use of innovative ma- terials, methods, and technology to reduce the energy demand of the building. In order to decrease energy demand, the study suggests that built environment professionals should focus largely on changing energy-consuming devices and their end uses for energy efficiency. It concluded that, in order to reduce overlap between the applications of these elements and bet- ter meet the needs of building occupants in terms of energy usage in Nigeria, energy demand should be considered from the design stage.

FINANCIJSKI RAZVOJ I POTROŠNJA ENERGIJE U NIGERIJI

The study examined the effect of financial development on energy consumption in Nigeria from 1990 to 2020. The study made use of secondary data and the data was analyzed using the Non-linear Autoregressive Distributed Lag Model (NARDL). Domestic credit to the private sector was used to measure financial development, while fossil fuel energy and renewable energy consumption were used to measure non-renewable and renewable energy respectively. Other variables included Gross domestic product, interest rate, and inflation. The study revealed that domestic private credit had a significant and negative impact on non-renewable energy only in the short run while changes in domestic credit had a significant and positive impact on renewable energy in Nigeria. This shows that the efforts of the financial sector so far in Nigeria have encouraged the consumption of renewable energy which therefore translates that the financial sector in Nigeria has a significant role to play in achieving Goal 7 target agenda of affordable and clean energy of the sustainable development. The study, therefore, recommends proper mobilization of funds from the financial sector towards investment in renewable energy considering the growing need for alternative energy sources in Nigeria. Also, policies that will discourage the use of non-renewable energy sources but encourage the use and affordability of renewable energy in Nigeria should be considered so that a reduction in environmental pollution, as well as improved health status, can be achieved.

Political Environment and the Use of Energy Resources in Nigeria

This study examines the dynamic relationship between political environment and the use of energy resources in Nigeria covering the period from 1978-2017 using the autoregressive distributed lag (ARDL) bounds testing approach. The results reveal that democracy has a significant long run and short run positive influence on energy consumption in Nigeria. However, the positive effect decreases significantly with an increase in the level of oil dependence in the short run. The results of this study in general support the view that high dependence of political democratic structures on oil wealth influences the positive effects of democracy in making public goods available in developing net oil-exporting economies. Economic diversification in Nigeria may therefore require formulating policies that will enhance access to clean energy sources in the economy.

Financial development and renewable energy consumption in Nigeria

Financial sector performance is increasingly linked with the transition to renewable energy in the sustainability discourse of developing economies. This paper examines the nexus and implication(s) of financial development on renewable energy consumption in Nigeria (the largest and most populous economy in Africa). Specifically, this study utilized the broad-based financial development index data to effectively address the multidimensional nature of financial development and the portion of renewable energy in total energy consumption as key variables, while other relevant pieces of information (growth rate of per capita GDP, foreign direct investment and consumer price index) were incorporated. The study employed a blend of the ADF test and Zivot-Andrew test to ascertain stationarity properties as well as the likelihood of structural breaks, while the ARDL was utilized to determine the long-run relationship(s) using data from 1981 to 2019. The study estimation finds, among other things, that financial development is critical for renewable energy consumption in Nigeria and recommends policies to promote better outcomes for the financial and energy sectors, respectively.

Modeling the determinants of renewable energy consumption in Nigeria: Evidence from Autoregressive Distributed Lagged in error correction approach

Different solutions have been designed to solve the climate change impacts. One recommended solution is to use renewable energy sources to power up economic activities. Renewable energy lowers the carbon footprint, generates no emissions and reduces harmful air pollutants. This research investigates the determinants of renewable energy consumption in Nigeria from 1960 to 2019 using the Parameterization Autoregressive Distributed Lagged in Error Correction approach. Nigeria is used as a case study because of its position and role in African and global economies. In the long-run, gross domestic product and financial development promote renewable energy consumption, and fossil fuel energy consumption harms renewable energy consumption. As gross domestic product increases by 1%, renewable energy consumption increases by 0.11%. A 1% increase in fossil fuel energy consumption decreases renewable energy consumption by 0.0008%. As financial development increases by 1%, renewable energy consumption increases by 0.026%. In the short-run, trade openness has a negative impact on renewable energy consumption. A 1% increase in trade openness decreases renewable energy consumption by 0.005%. Therefore, it is suggested that the Nigerian government continue to create policies that increase the Nigerian economy's productive capacity and regulate the importation of fossil fuel-related goods in favor of renewable energy products.

Dynamics of globalization, financial deepening and energy demand in Nigeria

In recent times, globalization has raised issues on dynamics of economic globalization, financialdeepening and energy consumption. The present study has been an attempt to explore interlinks betweenthese variables using Toda-Yamamoto causal approach and ARDL bound cointegration approach.The results showed unidirectional causality run from globalization to financial deepening variables suchas credit to private sector and market capitalization. It is also observed that unidirectional causality runsfrom credit to private sector to energy consumption. No causal relationship runs from broad money supplyto globalization and energy consumption. The coefficient of globalization has a positive and statisticallysignificant effect on energy consumption for both short and long-run. The results also shows thatfinancial deepening has impact on energy consumption in Nigeria; the coefficients on the interactionbetween the globalization (GLS), broad money supply (BDS), credit to private sector (CPS) and marketcapitalization (MCP) are statistically significant at 5% level and with the positive sign in the short-runand negative sign in the long –run. Nigeria should develop its financial sector to enhance investment inenergy saving equipments to reduce fossil fuel consumption.Key words: Globalization, Financial development, Energy Consumption.

Tourism-induced pollution emission amidst energy mix: evidence from Nigeria.

In recent years, there is concerted efforts to boost the tourism industry in Nigeria, and regulatory bodies were created for the tourism industry. This study is contributing to the ongoing debate on the tourism-energy-environment literature. Thus, we explore the linkage between tourism development, energy consumption, carbon dioxide (CO2) emission, and renewable energy consumption in Nigeria for the period of 1995-2016. The present study leverages on Bounds testing to cointegration in a carbon-income function environment while incorporating renewable energy consumption to the econometric framework. Subsequently, autoregressive distributed lag methodology alongside dynamic ordinary least square (DOLS) is utilized for robustness of estimations. Empirical results give credence to the energy-induced emission hypothesis in Nigeria. This outcome is suggestive to policymakers as fossil fuel-based energy consumption deplete the quality of the environment. Similarly, the study also affirms the environmental Kuznets curve (EKC) phenomenon. The emphasis on Nigerian growth trajectory (real income level) relative to her quality of environment via the channel of economic development and energy consumption from fossil-fuel source is indicated. On the other hand, renewable energy consumption in Nigeria shows significant ability to reduce emission level in Nigeria. This result is insightful, which implies that environmental quality is not threatened with an increase in tourist arrivals, hence tourism does not degrade the environment but is sustainable to the environment. Interesting and laudable for stakeholders' international tourism arrival did not deplete the quality of the environment. The plausible explanation is attributed to the scale of tourism in Nigeria which at the moment is still low or much more there is caution/awareness on ecotourism for sustainable environment.

OIL PRICE VOLATILITY AND RENEWABLE ENERGY CONSUMPTION IN NIGERIA

Oil price volatility is argued to be one of the incentives behind the rising prominence of renewable energy as a strategy to minimize oil dependence. Therefore, this study seeks to examine the impact of oil price volatility on renewable energy consumption in Nigeria from 1986-2017. A Vector Error Correction Model (VECM) was employed to achieve this objective. The variables were confirmed to exhibit a long run association. A unidirectional causality was also observed running from renewable energy consumption to oil price volatility. The impulse response function test shows that renewable energy consumption is positively influenced by oil price volatility in Nigeria. The variance decomposition result shows that real GDP causes the largest variation in renewable energy consumption amongst all the variables employed. The study recommends that public policies should be put in place to create awareness about the importance of the renewable energy sector and its potentials to lower health cost, mitigate climate change and helps Nigeria to attain energy security in the long run. Keywords: Oil Price Volatility, Renewable Energy Consumption, Vector Error Correction Model, Nigeria JEL Classifications : K32, P18, Q28 DOI: https://doi.org/10.32479/ijeep.9376

HUMAN CAPITAL DEVELOPMENT, ENERGY CONSUMPTION AND CRUDE OIL EXPORTS IN NIGERIA: IMPLICATIONS FOR SUSTAINABLE DEVELOPMENT

This study examined the roles of human capital development, energy consumption and crude oil exports in driving sustainable development goal eight (8)-sustainable economic growth in Nigeria. To achieve this, the authors utilized annual data from 1990 to 2018 which were sourced from World Data Atlas, International Energy Agency, WDI and the Central Bank of Nigeria Statistical Bulletin respectively. Autoregressive Distributed Lag technique of estimation was adopted for the data analysis. Consequently, the principal findings of this research work could be presented as follows; electricity power consumption and growth rate of the real GDP has an insignificant positive relationship with each other. The implication of this is that energy consumption in Nigeria has an inadequate capacity to drive a sustainable economic growth in the country. Similarly, oil exports have a significant positive relationship with the growth rate of the real GDP. This means that economic growth sustainability of Nigeria is highly dependent on oil exports. Conversely, government expenditure on education sector has a significant negative relationship with the growth rate of the real GDP. Also, expenditure of government on health sector has a negative but insignificant relationship with the growth rate of the real GDP. This implies that human capital development in Nigeria lack the capacity to ensure a sustainable economic growth. In view of the above, this study makes the following recommendations for the policymakers in Nigeria and by extension developing countries, any time the goal of these policymakers are sustainable economic growth, the development of human capital through adequate funding of educational and health sectors should be embarked upon. In the same vein, the policymakers should provide uninterrupted electricity supply for enhancement of maximum outputs in the country.

Optimizing Building Orientation for Reduced Cooling Load in Northeast Nigeria’s Residential Architecture

Between 1996 and 2005, the domestic sector was responsible for over half (55% -61%) of energy consumption in Nigeria. In addition, electrical energy used for cooling makes a significant contribution to national consumption. In the larger context of climate change and its accompanying adverse effects, it is important for architecture to reduce its global carbon footprint. Developing nations lack sufficient building performance standards, and as a consequence, sustainable building methods are neither pursued nor enforced. Thus, in the absence of high-tech green building practices, this paper seeks to evaluate how simpler passive means of design can be used to reduce cooling energy consumption in Northeast Nigeria’s hot dry climate. DesignBuilder is used to produce different building orientation iterations to evaluate their impact on cooling loads and an ideal building orientation is determined for the region. An optimal orientation of 270° is found to be optimal, as it reduces maximum cooling loads from 11150.95 kwh/yr to 9981.1 kwh/yr, a reduction of energy use of 10.5%.

Addressing Household Cooking Fuel Options in Nigeria

Households constitute the most significant sector in energy consumption in Nigeria. A plethora of energy source endowments exists to fulfill this demand. However, addressing the cooking fuels need arises due to issues relating to the economy, health and the environment. This necessitates empirical evidence to effect national efficient choice making and policy to entrench modern energy services. Mixed methods of analysis were employed to assess the economics of household cooking fuel choice, and policy option that would enhance productivity and inform future policy for rapid economic growth and environmental sustainability in Nigeria. Given the study findings from survey, the best alternative household energy for cooking in Nigeria is liquefied petroleum gas (LPG). Unimproved solid fuel use contributing 69.1% and 68.6% clearly dominates the household energy cooking choice over the five year period 2013 and 2018 despite its deleterious effects on the health, productivity and environmental sustainability of the economy. Government support and policy should be used to address the existing energy trilemma of productivity growth, access and security, and environmental sustainability to the economy by effectively utilizing the natural gas (LPG) endowments of Nigeria that was little used of as household cooking fuel choice in the ratio of 2.3% and 14.0% over the same period.

Determinants of Renewable Energy Consumption in Nigeria: A Toda Yamamoto Approach

Nigeria has inadequate power supply and this issue has lingered for years despite power sector reforms. Renewable resources could to be offering sustainable alternative energy supply in rural and urban regions of Nigeria. So, the key factors that determine the utilization of renewable energy in Nigeria are estimated in this paper for a period of twenty-four years using toda yamamoto method. Long-run relationship exists between renewable energy consumption and its determinants in Nigeria. Real income (real GDP) and emissions of CO2 are the most significant determinants of oil products import demand in Nigeria. Trade Openness was found to be insignificant. The analysis showed no causality between the consumption of renewable energy and some of its determinants. However, unidirectional causality runs from CO2 emission to GDP which implies that fossil fuels are significant drivers of real GDP or economic growth for Nigeria. It is evidenced that environmental considerations are less critical than real income to the consumption and development of renewable energy in Nigeria. Policy-makers should proffer incentives and measures that incentivize increased production and consumption of renewable energy while driving macroeconomic stability – especially in post COVID-19 era.

The impact of financial development on energy consumption in Nigeria

AbstractThis research evaluates the impact of financial development on energy consumption in Nigeria within the study period 1960–2019. Energy consumption in this study consists of fossil fuel energy consumption (FFEC) and renewable energy consumption (REEC). The ARDL bounds testing approach is used to determine whether a long‐run relationship exists among the variables. The findings showed evidence of a short‐run relationship. However, there was no long‐run relationship. In terms of FFEC, the study outcomes showed that financial development has a significant and negative impact on FFEC when domestic credit provided by the financial sector (DCPF) variable is used. However, the impact is not significant when the market capitalisation of listed domestic companies (MCAP) variable is used. Based on the Wald test, financial development variables at different lags jointly influence FFEC. For REEC, the results show that financial development significantly and positively impacts REEC at the 10% level of significance when the DCPF variable is used. However, it is insignificant when the MCAP variable is used. Using the Wald test, financial development variables at different lags jointly influence REEC. On the other hand, GDP is found to have a negative relationship with FFEC, but a positive relationship with REEC.

ENERGY CONSUMPTION AND ECONOMIC GROWTH NEXUS IN NIGERIA: EVIDENCE BASED ON ARDL BOUND TEST APPROACH

This study examines the relationship between economic growth and energy consumption in Nigeria by using ARDL Bound Test regression analysis. In the investigation process energy consumption, was disaggregated into electricity, coal and petroleum with growth rate of GDP data is used from 1980-2017. The findings show that petroleum and electricity variables are positive and significant to growth while coal is positive but not significant. Overall outcome is that energy consumption has a positive relationship with economic growth. The coal deposit must be put in use to increase energy production and consumption and stimulate other economic activities for growth Keywords: Energy consumption, economic growth, ARDL test.JEL Classifications: Q32, Q044DOI: https://doi.org/10.32479/ijeep.10021

The relationship between environmental degradation, energy use and economic growth in Nigeria: new evidence from non-linear ARDL

PurposeThe purpose of this paper is to study the relationship among environmental degradation, energy use and economic growth, thus lending a voice to testing the relevance, or otherwise, of the environmental Kuznets curve (EKC) hypothesis in Nigeria.Design/methodology/approachThe authors rely on the secondary data obtained from World Bank’s World Development Indicators for Nigeria, between 1981 and 2014. The non-linear autoregressive distributed lag (ARDL) technique is used after examining the unit root properties – using the augmented Dickey–Fuller and Phillips–Perron methods – and the long-run relationship – using the ARDL bounds approach to estimate the asymmetries in the effects of economic growth on the environment.FindingsThe findings of this study uphold the relevance of the EKC hypothesis in Nigeria, as the growth of GDP first reduces the environmental quality but raises it over time. Furthermore, the use of energy is found to deteriorate environmental quality, given that CO2 rises by 0.002% for a unit increase in the consumption of energy in Nigeria.Research limitations/implicationsA limitation to this research is the data coverage, which is just between 1981 and 2014, based on availability. One other limitation is the use of electric power consumption as a proxy for energy use (because of the difficulty in obtaining accurate data on energy consumption in Nigeria). Future research should, therefore, test different other proxies, to either agree with the findings or justify any deviation therefrom. Also, the use of up-to-date data is recommended as an improvement to this study, while a non-linear technique should be used on studies involving the panel of countries.Originality/valueMany studies have examined this relationship by simply taking the square of GDP as a measure of its non-linear effect on the environment. The authors are one of the first who consider the asymmetric effect of economic growth on the environment through the non-linear ARDL technique. With this, the partial sums of positive and negative changes in economic growth on the environment are easily established.

Household Energy Consumption in Nigeria: A Review on the Applicability of the Energy Ladder Model

Household energy consumption dynamics in developing countries is often conceptualized through the Energy ladder model and assumes that with increasing income, householders will have a preference to cleaner energy. This paper reviewed various energy sources for household consumption and examines the implications of their dependence on traditional energy sources as well as the energy ladder model as a concept widely used by scholars in describing the role of income in determining energy use and choices. It further explains the consumption behaviour of households in relation to the major assumptions of the model. The paper posits that the dependence on energy sources at the lowest rung of the energy ladder by most households in Nigeria is accentuated by rising poverty level consistent with the energy ladder hypothesis but disagrees with the notion of complete fuel substitution given that most households tend to have a mix of energy sources for their activities It recommends that government and other stakeholders should formulate policies that will foster the use of modern energy sources with a view to mitigating the environmental and health externalities of traditional energy use as well as improving the quality of human lives.
 Keywords: Households, energy consumption, energy ladder model, income