GROWTH EFFECT OF ENERGY RESOURCES ON NIGERIA ECONOMY

Simeon M. Eze

Department of Continuing Education,

Federal College of Education, Eha-Amufu, Enugu State, Nigeria

E-mail: simeonmaduekeeze@yahoo.com

Abstract: This paper investigated empirically the effect of energy resources on Nigerian economy, and long run relationship between energy resources and Nigerian economy. An econometric model was specified and verified. Changes in Gross Domestic Product were regressed on Electricity, Coal, Gas/Petroleum products. Unit root and co-integration tests were also employed. Data analysis showed that energy resources have positive effect on Nigerian economy and that a long run relationship exists between energy resources and Nigerian economy. The following recommendations are therefore made: Government programme of privatization of electricity generating and distribution should be sustained; other sources of generating energy such as sun, wind should be vigorously explored; all the challenges which confront exploration and distribution of petroleum products should be addressed appropriately; solid minerals exploitation should be given due attention.

Keywords: Econometric Model, Gross Domestic Product, Energy Resources, Unit Root and Co-Integration Tests, Nigerian Economy, Distribution of Petroleum Products, Solid Minerals Exploitation.