Economics Project Topics

Energy Consumption and Economic Growth in Nigeria (1989-2019)

Energy Consumption and Economic Growth in Nigeria (1989-2019)

Energy Consumption and Economic Growth in Nigeria (1989-2019)


Aim and Objectives of the Study

The main Aim of the study is to examine the effect of energy consumption and economic growth in Nigeria. Hence the following are specific objectives

  1. To study the trend analysis of energy consumption in Nigeria.
  2. To examine the relationship between energy (Electricity) consumption and the Nigerian economic growth.
  3. To make policy recommendations based on the analysis from the study.



The section will use various approach as reviewed in extant literatures in the study, which includes, conceptual, empirical and theoretical approach. Hence methodological review of various studies will also be added.

Conceptual Review

The conceptual framework of the study will extensively review concept identified in the study, energy consumption, electricity, coal, crude oil and economic growth will be review broadly in this section.

Energy Consumption in Nigeria

Energy is ability of matter to perform work as the outcome of its motion or its position in relation to forces acting on it (Onakoya, Onakoya, Jimi – Salami and Odedairo, 2013). We use energy for the whole thing we do, from creating a jump to sending astronauts into space. The same concept according to Tejada-Bailly (1981) can be expressed as the amount of heat that must be transferred, exchanged or used up to effect a process or deliver a good to a particular point in the economic system. Energy exists in various forms, including atomic, electrical, chemical, mechanical, nuclear, radiant and thermal. Although energy can be transferred from one form to another but it cannot be created or destroyed. Energy can be extracted from a variety of resources that can be categorized as primary and secondary; commercial and noncommercial; conventional and nonconventional; renewable and non-renewable and traditional and non-traditional (Aminu and Aminu, 2015).

Energy is widely regarded as a driving force behind any economic activity and indeed industrial production. Therefore, high grade energy resources will increase the influence of technology and create tremendous economic growth (Onakoya et al., 2013). The significance of energy lies in other aspect of development – increase in foreign earnings when energy products are exported, transfer of technology in the process of exploration, production and marketing; increase in employment in energy industries; improvement of workers welfare through increase in worker’s salary and wages, improvement in infrastructure and socio-economic activities in the process of energy resource exploitation (Onakoya et al., 2013).

Nigeria had been a lucky nation to have huge energy resources, which possibly give the country an ample opportunity to transform her economy and the lives of her citizens. Nigeria sits astride of over 35 billion barrels of oil, 187 trillion cubic feet of gas, 4 billion metric tons of coal and lignite, as well as enormous reserves of tar sands, hydropower and solar radiation, amongst others (Adenikinju, 2008; Odularu and Okonkwo, 2009). Today, Nigeria is seen as one of the highest developing nations in Africa with highly endowed natural resources with potential energy resources. However, increasing access to energy in Nigeria has proved to be not only a nonstop challenge but also a persistent issue with the international community. The significance that the country has placed on crude oil is relatively very high. The over reliance of crude oil in Nigeria is a major encounter because it has failed to spread its energy consumption and ensure a fitting energy mix.



Materials and Methods

Area of Study

The study focused on the energy consumption and economic growth in Nigeria and the Head Quarters of Federal Ministry of Power, Works and Housing, Abuja were used as the case study in this study.

Research Design

The research design used for this study was the descriptive research design. Since data characteristics were described using frequencies and percentages, and no manipulations of data or variables were necessary, the researcher chose this research design. The researcher discarded other alternatives such as the causal and explanatory research designs, because accurate findings and data analysis may not be achieved.

Population of the Study

The staff in various departments of the Power, Federal Ministry of Power, Works and Housing Abuja formed the population of the study.

Sampling Procedure and Sample Size  

A stratified random sampling technique was used for the study. A population of one hundred (100) staff of the various departments were studied.



In the course of the research, one hundred (100) questionnaires each containing nineteen (19) items was administered to various respondents, who were staff in Federal Ministry of Power, Works and Housing, Abuja and all the questionnaires were duly completed, thus giving a perfect collection rate of 100%.

The table above shows the gender distribution of respondents. 48% of the respondents were male and the remaining 52% were female. Thus, female respondents were slightly higher than their male counterparts.



Discussion of Findings

The results found that energy consumption has significant relationship with economic growth in Nigeria. This implies that energy consumption has stopped the evasion of due process in most activities of the economy. This result is consistent with the findings of (Maku, 2014; Olugbenga and Owoye, 2007). Energy consumption has birthed the more revenue which means the redistributed of the fiscal capacity has a positive impact on the energy. Generally speaking, energy consumption has influence the infrastructural spending which affects aggregate resources combined with fiscal and monetary policies.


This study investigated the relationship between Energy consumption and economic growth in Nigeria (1989-2019). It is concluded that the relationship between energy consumption and economic growth is important for all developing economies like Nigeria, most of which have experienced increasing level of government spending and have achieved low level of economic development overtime. Since independence, the revenues accruing to the Nigeria Government has been on the increase annually in power sector. The study further concluded that; Issues pertaining to energy consumption and economic development should be given adequate attention especially in the budget schemes and because of this, substantial amount should be allocated to the power sector in order to resolve its challenges and keep the sector in good shape for it to make meaningful impact in economic growth.

This study concluded that Energy consumption has significant relationship with economic growth in Nigeria based on our study.


Based on the findings enumerated above, this study therefore, recommends that energy conservation policies should be effectively implemented without having any negative effect on economic growth in Nigeria and energy growth policy should be adopted in such a way that, growth in the energy sector stimulates economic growth and thus expands employment opportunities in the country.


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