MEASRURING ENERGY EFFICIENCY IN NIGERIA: ENERGY INTENSITY AND ENERGY-GDP ELASTICITY APPROACH

Abstract

Energy intensity and Energy-GDP are both measure of efficiency in the use of energy in economy. Most studies as discussed in the literature only exposed the effect energy consumption on economic growth in Nigeria. However, there is need to measure the how efficient energy was consumed. This study employed secondary data on energy consumption and economic growth sourced from IEA of US. The study adopted a descriptive analysis in the form of trends and chats. The results show that energy efficiency in Nigeria has been on the decrease within the understudy period. Also, the major proportion of energy consumed in Nigeria is by household. By implication, most energy consumed are not on productive purpose therefore, economic growth be affected. The study finally recommend that, knowing the importance of industrial activities in economic growth, Policies that could make credit available for industrial activities should be formulated and implemented. Also, import substitution industrial policies and tax relieve could stimulate industrial activities and increase the demand for energy for productive activities. Feedback industrial policies can also be encouraged by promoting the agricultural sector with the aim of making raw materials available to the industrial sector.