Energy Consumption and Industrial Output Growth in Nigeria (1981-2018)

Abstract

Although Nigeria has strong oil resources present in its economy, still it suffers from energy shortages. This causes heavy crisis in the Industrial Output growth. This study has a primary objective to find out the nexus between Petroleum Consumption and Industrial Output from Nigerian economy point of view. it also checks the influence of electricity consumption on the growth of economy.  This study has used a secondary data source. The data has been obtained from CBN Annual Report and Statement of Account 2018; a positive relationship between Industrial Output growth and Petroleum Consumption revealed by this study. Similar type f association found between Industrial Output growth and Coal Consumption. Based on the findings and conclusion, the study recommended among others that government should intensify efforts at maintaining consistency in the production and utilization of energy for improved Industrial Output growth in Nigeria; government should ensure reliable and sustainable supply of energy at a  cost affordable to the Industrial sector in Nigeria and government should redesign policies that enhances increased production capacity of the sector through appropriate Energy Supply to achieve Industrial Output growth in Nigeria.