Energy consumption and sectoral output performance in Nigeria (1981-2019)
| dc.contributor.author | ADEYEMI Owolabi Williams | |
| dc.date.accessioned | 2024-10-09T12:05:10Z | |
| dc.date.available | 2024-10-09T12:05:10Z | |
| dc.date.issued | 2022 | |
| dc.description | i-xiv, 1-176 | |
| dc.description.abstract | The study examined a trend analysis of energy consumption and sectoral outputs in Nigeria,identified the direction of causality between energy consumption and sectoral outputs in Nigeria within the period of 1981-2019, and also determined the effect of energy consumption on sectoral outputs. These were with a view to examining the relationship between energy consumption and sectoral output performance in Nigeria.The descriptive research design, and annual secondary data for the period of 1981-2019 were employed in the study. Data on real Gross Domestic Product (GDP), energy consumption, labour force, exchange rate and agricultural, crude petroleum & mining, manufacturing, construction, and trade & services outputs for the study period were sourced from World Development Indicators (WDIs, 2021) published by the World Bank, and Central Bank of Nigeria (CBN) Statistical Bulletin. The study used descriptive statistics in form of tables and graphs, while the autoregressive distributed lag (ARDL) error correction mechanism model was adopted for the short run effect analysis, and the Fully Modified Ordinary Least Squares (FMOLS) with allowance for structural breaks was adopted for long run effect analysis. The results, in relation to the trend analysis, revealed that the trend of sectoral energy consumption demonstrated a divergent pattern from those of the key sectors of the economy. Specifically, turbulent trend patterns were observed for the energy consumption by each sector, which signified different energy availability and consumption patterns for the sectors, whose outputs showed a somewhat slow but progressive growth. On the issue of causality, the study established a unidirectional causality running from agricultural output to energy consumption (χ2= 11.1569, p < 0.001). Similar finding was established between trade and services output and energy consumption (χ2 = 8.8806, p < 0.001). However, a bidirectional causation was established between energy consumption (χ2 = 31.7560, p < 0.05) and manufacturing output (χ2 = 4.1180, p < 0.0424). The study further established no causality between energy consumption and both crude petroleum & mining, and construction output. On the effect of energy consumption on the disaggregated sectors of the economy, the study established that the agricultural sector experienced positive and significant effect of energy consumption (t = 3.3874, p < 0.01). However, a study further established that energy consumption has significantly negative effect on the construction sector output (t = -2.13, p < 0.05), while it also revealed that energy consumption has positive but insignificant effect on the trade & services sector. In the long run, however, the study reveals that energy consumption has both positive and significant effect on agricultural output (t = 5.49, p < 0.01), manufacturing output (t = 10.03, p < 1), construction output (t = 2.79, p < 0.01), and trade & services output (t = 18.82, p < 0.01). The study concluded that though there is positive relationship between energy consumption and sectoral performance in Nigeria, the contribution of the sectors to Nigeria’s economic growth is low, which is due to inadequate energy consumption. | |
| dc.identifier.citation | Adeyemi, O.W. (2022). Energy consumption and sectoral output performance in Nigeria (1981-2019). Department of economics, Faculty of social sciences, Obafemi Awolow University. | |
| dc.identifier.uri | https://ir.oauife.edu.ng/handle/123456789/6652 | |
| dc.language.iso | en | |
| dc.publisher | Department of economics, Faculty of social sciences, Obafemi Awolow University. | |
| dc.title | Energy consumption and sectoral output performance in Nigeria (1981-2019) | |
| dc.type | Thesis |