Universal Journal of Accounting and Finance Vol. 9(1), pp. 74 - 85
DOI: 10.13189/ujaf.2021.090108
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Energy Consumption and Sectorial Value Addition on Economic Growth in Nigeria

Udo Emmanuel Samuel ^1,*, Idamoyibo Hwerien Rosemary ², Victor Inim ³, Akpan Jack Ededem ¹, Victor Ndubuaku ^4
1 Department of Banking and Finance, University of Nigeria Enugu, Nigeria
² Department of Accounting, Ignatius Ajuru University of Education, Port Harcourt, Nigeria
³ Department of Accounting, Nile University of Nigeria, Nigeria
⁴ Federal College of Agriculture Ishiagu, Nigeria

ABSTRACT

This study investigates the co-integrating and causal link between energy consumption and economic growth in three economic sectors of agriculture, manufacturing, and service sectors in Nigeria. Through the multivariate framework and quarterly data from 2000Q₁-2018Q₄. The ARDL bounds test approach, and Error Correction Model are the key techniques of analysis, and the Clemente-Montanes-Reyes unit root approach for structural breaks in the series. Findings revealed estimated billing system, and energy demand-supply gap as factors negatively influencing energy distribution and consumption in various sectors of the economy. The results also revealed a co-integrating relationship between economic growth and sectorial value creation. The results also revealed a bidirectional causality between liquefied natural gas and energy consumption and a unidirectional causality between economic growth and petroleum oil consumption. On the contrary, there is a non-causal relationship between the service and agricultural sectors. Sufficient energy distribution and consumption stir economic growth through value additions in the agricultural, manufacturing, and service sectors. The study recommends a review of the billing system, pricing framework, and policies to support, value creation, and addiction in Nigeria.

KEYWORDS
Energy Consumption, Economic Growth, Petroleum Oil, Gas, Co-Integration, Granger Causality, ECM

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Udo Emmanuel Samuel , Idamoyibo Hwerien Rosemary , Victor Inim , Akpan Jack Ededem , Victor Ndubuaku , "Energy Consumption and Sectorial Value Addition on Economic Growth in Nigeria," Universal Journal of Accounting and Finance, Vol. 9, No. 1, pp. 74 - 85, 2021. DOI: 10.13189/ujaf.2021.090108.

(b). APA Format:
Udo Emmanuel Samuel , Idamoyibo Hwerien Rosemary , Victor Inim , Akpan Jack Ededem , Victor Ndubuaku (2021). Energy Consumption and Sectorial Value Addition on Economic Growth in Nigeria. Universal Journal of Accounting and Finance, 9(1), 74 - 85. DOI: 10.13189/ujaf.2021.090108.