Energy Consumption In Nigeria Research Articles

Determinants of Market Power in Electric Power Market of Rural Areas in Nigeria

Electricity is central to socioeconomic growth and development of any economy. And, the electrical power sector of many economies has witnessed reforms in recent time, transforming into competitive and or oligopolistic market structure. In any case, energy pricing subsist as a challenge across the power value chain. This study focused identifying the determinants of market power of energy distributing operation and rural area consumers in the power retail market in Nigeria’s present oligopolistic power market structure. Adopting a production function model and econometric analysis of selected power sector time series variables between 2000-2017, the study discovered that electrical power generation, rural electricity access and energy consumption in Nigeria are though essential but do not ultimately and significantly determine market power of competing firms in the electric power market in Nigeria. It is concluded that evidence of the importance of market power for competing firms in the electric power conduct in terms of energy pricing and cost decisions is auspicious considering their prevailing market challenges. The study therefore recommend amongst others for exclusive regional or sub regional power chain structural transformation of Nigerian electrical power in order to help build efficient and effective energy supply thereby elicit information/data for control, improvement, competition and researches in the sector while Future research on market power in electrical power market is encourage on assumptions.

Banking Sector Development and Energy Consumption in Nigeria: Exploring the Causal Relationship and its Implications

AbstractThis study examines the causal relationship between banking sector development and energy consumption in Nigeria over the period 1971–2013 incorporating crude oil price and indicators of economic performance. An autoregressive distributed lag bounds testing approach to cointegration provides evidence of long‐run relationship among the variables. The long‐run and short‐run estimates suggest that a non‐linear inverted U‐shaped relationship exists between banking sector development and energy consumption in Nigeria, indicating that initially, energy consumption increases as the banking sector develops and then declines as the banking sector matures to generate efficiency in energy consumption. In addition, this study explores the direction of causality between the variables using the Toda–Yamamoto Granger causality test procedure. The results suggest that a unidirectional causality runs from crude oil price to banking sector development, from banking sector development to energy consumption and from energy consumption to economic growth. It may therefore be necessary for policy makers in Nigeria to incorporate banking sector development in the energy and sustainable economic policies.

Do Crude Oil Prices Affect Energy Consumption in Nigeria?

Do Crude Oil Prices Affect Energy Consumption in Nigeria?

The Influence of Urbanization, Population Age Groups and Trade on Energy Consumption in Nigeria: An Empirical Analysis

This study examines the influence of urbanization, population age groups (15-64 and 65 and above) and international trade on energy consumption in Nigeria using ARDL cointegration analysis and the direction of causality between the variables using VECM Granger causality framework over the period 1971-2013. The influence of trade openness and urbanization on energy consumption in the long run is found to be positive and significant. Working (ages, 15-64) and old and retired (ages, 65 and above) population age groups are found to be influencing the level of energy consumption differently. While the size of old and retired population group (ages 65 and above) causes the level of energy consumption to decrease, the size of the working population (ages 15-64) causes the level of energy consumption to increase. These results could be a guide to policy makers in analysing the energy requirements of the Nigerian economy and for appropriate energy policies required to mitigate environmental issues related to the consumption of fossil fuels.

Trend appraisal of Nigeria's energy sector and its implication on living standards

Utility capacity and energy consumption in Nigeria over a 10-year period 2005-2014 were analysed. Improvement was recorded from 2010 through 2014 for yearly and monthly peak load demand and energy consumption. The coming on stream of some NIPP plants, reduction in vandalism of gas infrastructure following the presidential amnesty to Niger Delta militant in August 2009, the launching of power sector road map in 2010 which saw to the eventual privatisation of power generation and distribution and mean monthly reservoir inflow for Kainji Dam respectively were seen to influence the yearly and monthly energy distribution. By regression technique, per capita electricity consumption (EC/capita) was used to predict to a reasonable degree of accuracy the living standard indicators-infrastructure availability and purchasing power parity. The implication of this therefore is that for there to be a positive shift in the economic and social well-being of the populace attention must be given to the provision of functional energy infrastructure.

SOCIO - ECONOMIC DETERMINANTS OF HOUSEHOLDS FUEL CONSUMPTION IN NIGERIA

Attainment of universal access to affordable, reliable, sustainable and modern energy is one of the goals for Sustainable Development Goals (SDGs). Existing data and statistic suggest that high proportion of households in less developed countries heavily rely on solid fuels for domestic requirements. Also, recent data revealed that in Nigeria over 70 percent of households depend on fuel wood for cooking which indicate the task ahead of policy makers in the country for ensuring access to efficient sources of energy before the expiration of sustainable development goals. In this study we empirically examined socio-economic factors that influence households’ likelihood of energy consumption in Nigeria. In order to achieve our specific objectives, we adopt 2013 demographic health survey dataset for Nigeria and multinomial logistic regression was conducted in analyzing the factors affecting households’ decision for energy demand. Evidence from the study revealed that demographic characteristics, economic status, public awareness and social variables are strong determinants of households’ energy choice in the country and conformed to the propositions of “Energy Ladder Hypothesis”. We concluded by presenting concluding remarks and policy implications for decision making toward ensuring access to affordable, sustainable and efficient energy in Nigeria.

Effect of Energy Consumption on GDP Evidence from (Ten) Sub-Saharan Africa Countries

<p>There is no uncertainty that Energy plays a very important part in economic growth and development of any country and increasing access to modernized systems of energy is vital to unlocking rapid economic and social development in sub Saharan Africa. Therefore, this paper has empirically examined the causality between energy and economic growth using a consistent data set and methodology for 10 sub-Saharan Africa countries for the period 1990-2012. By applying Augmented Dickey Fuller, co-integration and causality tests the study finds causality running from GDP to energy consumption in Nigeria, in Ghana causality runs from energy consumption to GDP, for Namibia causality runs from GDP to energy consumption but not vice versa and for Cote d’ivore causality runs from gross capital formation to GDP. And no evidence of causality found in Togo, Cameroon, Botswana, Ethiopia, South Africa and Benin.</p>

Energy consumption and economic growth: causality relationship for Nigeria

In this paper, cointegration and causality between energy consumption and gross domestic product (GDP) in Nigeria over the period 1971-2006 were analysed. The study used vector error correction models to test the relationships. The results of these tests showed the existence of cointegration as well as unidirectional causality-running from GDP to energy in Nigeria. The conclusion from these results was that decline in GDP or economic recession may have an adverse effects on energy consumption in Nigeria. However, energy conservation policies could be effectively implemented without any negative consequence on the growth of GDP in Nigeria.

An evaluation of alternatives for cooking energy in Nigeria’s household energy mix

Globally, energy consumption is projected to grow, with the major increase expected in developing countries, including Nigeria. Bio-energy sources accounted for 60% of the total final energy consumption in Nigeria, of which 85% was utilized by the household sector, in 2000. The effect of technology intervention on household energy mix in Nigeria was examined for a 30-year period by using four different economic development scenarios. These consist of the baseline scenario, NEEDS (National Economic Empowerment and Development Strategy) Baseline, or N_BS, and three technology intervention scenarios, namely, NEEDS Trend Scenario, or N_TS, NEEDS Action Scenario, or N_AOS, and Non-NEEDS Scenario, or N-NS. The study was carried out for different ecological zones, namely, forest and savanna. Long-range Energy Alternatives Planning, or LEAP, system, an energy simulation model, was employed for the analysis of the study. Lower and upper limits of the cost of technology intervention are $17.40 billion and $39.20 billion for N_BS and N-NS, respectively. The final energy demand dropped by about 47%, 55%, and 64% for the three intervention scenarios, namely, N_TS, N_AOS, and N-NS, respectively. Environmental implications, in terms of GHG (greenhouse gas) savings, are savings of 1.5 billion kg of C equivalent, and the avoided cost is about −$0.11 million/tonne of C equivalent, which actually represents benefit. Cumulative GHG emission per capita at about 690 kg CO2 equivalent was highest for N_BS in 2030, with the least emission occurring for N-NS for the same time period, at 550 kg CO2 equivalent. The final energy intensity for the country's household sector was estimated to be 50.96 GJ/annum. With a technology intervention that is more efficient than the current trend and provides better alternatives for cooking energy, this figure is expected to drop appreciably over the 30-year time frame of the analysis. However, the immediate contending issues for household energy use in Nigeria are ensuring accessibility to energy sources in terms of availability and affordability, and enabling the rural populace and urban poor to achieve a sustainable path for national economic growth and development.

Patterns of energy consumption in Nigeria

The forms of energy consumed in Nigeria have increased in diversity and intensity with innovations in science and technology and socio-economic changes. Taking account of the continuing population growth, and the realization that the available fossil energy resources are finite and, therefore, exhaustible, it has become necessary to examine Nigeria's energy consumption trends continually as an aid to conservation and development of new alternatives. In view of this, the patterns of energy production, distribution and consumption in Nigeria are discussed in this paper, with special reference to the primary (fossil) fuels and electricity. Future consumption trends are also included.

Optimal Structure of the Nigerian Energy Supply Mix

Nigeria, a member of the Organization of Petroleum Exporting Countries (OPEC), is blessed with relatively abundant energy resources like petroleum, gas, coal, solar, hydropower, etc. With an estimated population of 80 million, the country also has abundant human resources. In spite of her varied human and energy resources, the performance of the Nigerian economy has been closely linked with one resource, petroleum, a situation characteristic of most OPEC member countries. oil exports, energy consumption in Nigeria has been on the increase. The increase is attributed mainly to the consumption of petroleum products, especially gasoline, and to electricity production from fossil fuels. A simple extrapolation of the growth in the petroleum products experienced in the 1970s and early 1980s shows that there is a possibility that future petroleum exports may be severely curtailed, either due to production capacity limitations or to OPEC crude oil production quota (Dayo and Adegbulugbe, 1985). But due to the nation's diversified energy resource base and the possibility for fuel substitution, such a situation need not arise. One of the key energy policy issues for Nigeria is how to utilize the various domestic resources to achieve balanced development. My purpose is to examine, using a linear programming approach, what the long-term optimal structure of the Nigerian energy supply mix might look like. The aim of the exercise is modest in the sense that I am mainly interested in highlighting the potential roles of the various energy resources. I have not tried to give precise estimates of the future energy supply mix since (a) the objectives of government will necessarily be more complex than what is modeled here and (b) some of these objectives may not be quantifiable. The next section gives a brief description of the energy supply and demand situation in Nigeria. This is followed by a description of the analytical approach