ENERGY CONTRIBUTIVE INDICATORS AND ECONOMIC GROWTH OF NIGERIA, 1981-2024

Abstract

This study focused on energy contributive indicators on economic growth in Nigeria from 1981-2024. The specific objectives include to: ascertain the relationship between renewable energy and gross domestic product (GDP) of Nigeria and determine the relationship between fossil fuel and gross domestic product (GDP) of Nigeria. Ex-post facto design was employed. The study used time series data of 43 years (1981-2024) obtained from Central Bank of Nigeria (CBN) Statistical Bulletin. Preliminary tests were conducted using normality test (descriptive statistics and unit root test). Correlation test method was used to estimate the variables at 0.05% level of significance. This study revealed that renewable energy had non significant positive relationship with gross domestic product (GDP) in Nigeria (correlation vale = 0.146853., t-value = 9.62149, pv = 0.3415>0.05 level of significance) and fossil fuel had non significant positive relationship with gross domestic product (GDP) in Nigeria (correlation vale = 0.098169., t-value = 0.638102, pv = 0.5264>0.05 level of significance). In the light of findings, the study recommended that government should set a renewable energy target goals by develop policies that will enable its adoption. Similarly, government shall offer financial incentives by providing tax credits, grants, and subsidies to encourage investment in renewable energy technologies like solar and wind etc and government should enhance oil refining and petrochemical process by investing in technologies that will optimize fossil fuel production, reduce emissions and minimize waste