IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-2p3859-3873.html
   My bibliography  Save this article

Does Energy Utilisation Reduce Unemployment? The Nigeria’s Experience

Author

Listed:
  • Alwell Nteegah

    (University of Port Harcourt, Nigeria)

  • Tochukwu Michael Dinyelu

    (University of Port Harcourt, Nigeria)

Abstract

This study empirically determined the effect of energy utilisation on employment in Nigeria over the period 1990 – 2022 using time series data. The study utilized data on: renewable (hydroelectric), nonrenewable (petroleum oil and natural gas), energy consumption and unemployment rate sourced from the Central Bank of Nigeria Statistical Bulletin, World Development Indicator (WDI) and the International Energy Association (IEA). This study adopted cointegration and error correction mechanism (ECM) methodology to investigate the relationship between the energy consumption and unemployment rate. Findings from the study shows that the utilisation of renewable energy resource like hydro power, had a substantial adverse effect on unemployment rate. Conversely, the use of nonrenewable energy sources, petroleum oil and natural gas, had a substantial positive effect on unemployment rate in Nigeria. Based on the findings, the study therefore concluded that there exists a variation in the impact of energy consumption on unemployment rate, in Nigeria. Consequent upon these findings, the study suggested improve investment in power generation that supports the integration of renewable energy into the national grid and reduction in transmission power losses during transmission in order to improve power supply, improve investment and creation of more job opportunities for the teeming unemployed youths in Nigeria.

Suggested Citation

  • Alwell Nteegah & Tochukwu Michael Dinyelu, 2025. "Does Energy Utilisation Reduce Unemployment? The Nigeria’s Experience," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(2), pages 3859-3873, February.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-2:p:3859-3873
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-2/3859-3873.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/does-energy-utilisation-reduce-unemployment-the-nigerias-experience/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hosier, Richard H. & Dowd, Jeffrey, 1987. "Household fuel choice in Zimbabwe : An empirical test of the energy ladder hypothesis," Resources and Energy, Elsevier, vol. 9(4), pages 347-361, December.
    2. M.Adetunji BABATUNDE & M.Isa SHAUIBU, 2011. "The Demand for Residential Electricity in Nigeria," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 21, pages 1-13.
    3. Hlalefang Khobai & Nwabisa Kolisi & Clement Moyo & Izunna Anyikwa & Siyasanga Dingela, 2020. "Renewable Energy Consumption and Unemployment in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 170-178.
    4. Ali Wajid & Nathaniel Solomon Prince & Adekunle Ibrahim Ayoade & Kumar Bezon, 2022. "Energy Consumption and Economic Growth Linkage: Global Evidence from Symmetric and Asymmetric Simulations," Quaestiones Geographicae, Sciendo, vol. 41(2), pages 67-82, June.
    5. Shuddhasattwa Rafiq & Ruhul Salim & Pasquale M Sgro, 2018. "Energy, unemployment and trade," Applied Economics, Taylor & Francis Journals, vol. 50(47), pages 5122-5134, October.
    6. Hillebrand, Bernhard & Buttermann, Hans Georg & Behringer, Jean Marc & Bleuel, Michaela, 2006. "The expansion of renewable energies and employment effects in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3484-3494, December.
    7. Nicholas Apergis & Ruhul Salim, 2015. "Renewable energy consumption and unemployment: evidence from a sample of 80 countries and nonlinear estimates," Applied Economics, Taylor & Francis Journals, vol. 47(52), pages 5614-5633, November.
    8. Payne, James E., 2009. "On the Dynamics of Energy Consumption and Employment in Illinois," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2), pages 1-5.
    9. Leach, Gerald, 1992. "The energy transition," Energy Policy, Elsevier, vol. 20(2), pages 116-123, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saboori, Behnaz & Gholipour, Hassan F. & Rasoulinezhad, Ehsan & Ranjbar, Omid, 2022. "Renewable energy sources and unemployment rate: Evidence from the US states," Energy Policy, Elsevier, vol. 168(C).
    2. Long, Han & Prasad, Biman & Krishna, Victor & Tang, Kai & Chang, Chun-Ping, 2024. "Understanding the key determinants of Fiji's renewable energy," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1144-1157.
    3. Gulmira Azretbergenova & Beybit Syzdykov & Talgat Niyazov & Turysbekova Gulzhan & Nazira Yskak, 2021. "The Relationship between Renewable Energy Production and Employment in European Union Countries: Panel Data Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 20-26.
    4. Patricia Iyore Ajayi, 2018. "Urban Household Energy Demand in Southwest Nigeria," African Development Review, African Development Bank, vol. 30(4), pages 410-422, December.
    5. Veli Yılancı & Emel İslamoğlu & Sinem Yıldırımalp & Gökçe Candan, 2020. "The Relationship between Unemployment Rates and Renewable Energy Consumption: Evidence from Fourier ADL Cointegration Test," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 8(1), pages 17-28, June.
    6. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2013. "The energy ladder: Theoretical myth or empirical truth? Results from a meta-analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 504-513.
    7. Hafiz Salami & Kingsley Okpara & Chomsri Choochuay & Techato Kuaanan & David Akeju & Manasseh Shitta, 2025. "Domestic energy consumption, theories, and policies: a systematic review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(3), pages 5821-5867, March.
    8. Stéphane Couture & Serge Garcia & Arnaud Reynaud, 2009. "Household Energy Choices and Fuelwood Consumption: An Econometric Approach to the French Data," LERNA Working Papers 09.08.284, LERNA, University of Toulouse.
    9. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2014. "The impact of the household decision environment on fuel choice behavior," Energy Economics, Elsevier, vol. 44(C), pages 236-247.
    10. Damette, Olivier & Delacote, Philippe & Lo, Gaye Del, 2018. "Households energy consumption and transition toward cleaner energy sources," Energy Policy, Elsevier, vol. 113(C), pages 751-764.
    11. Gupta, Ridhima & Pelli, Martino, 2021. "Electrification and cooking fuel choice in rural India," World Development, Elsevier, vol. 146(C).
    12. Cheng, Chao-yo & Urpelainen, Johannes, 2014. "Fuel stacking in India: Changes in the cooking and lighting mix, 1987–2010," Energy, Elsevier, vol. 76(C), pages 306-317.
    13. Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2019. "Energy demand substitution from biomass to imported kerosene: Evidence from Tanzania," Energy Policy, Elsevier, vol. 130(C), pages 243-252.
    14. Raul Jimenez & Ariel Yépez-García, 2016. "Composition and Sensitivity of Residential Energy Consumption," IDB Publications (Working Papers) 95257, Inter-American Development Bank.
    15. Muller, Christophe & Yan, Huijie, 2018. "Household fuel use in developing countries: Review of theory and evidence," Energy Economics, Elsevier, vol. 70(C), pages 429-439.
    16. Asibey, Michael Osei & Ocloo, Kafui Afi & Amponsah, Owusu, 2021. "Gender differences and productive use of energy fuel in Ghana’s rural non-farm economy," Energy, Elsevier, vol. 215(PB).
    17. Dacuycuy, Connie B., 2017. "Energy Consumption, Weather Variability, and Gender in the Philippines: A Discrete/Continuous Approach," Discussion Papers DP 2017-06, Philippine Institute for Development Studies.
    18. Yang, Xiaojun & Xu, Jintao & Xu, Xiaojie & Yi, Yuanyuan & Hyde, William F., 2020. "Collective forest tenure reform and household energy consumption: A case study in Yunnan Province, China," China Economic Review, Elsevier, vol. 60(C).
    19. Vahlne, Niklas, 2017. "On LPG usage in rural Vietnamese households," Development Engineering, Elsevier, vol. 2(C), pages 1-11.
    20. Kabiru Saidu Musa & Rabiu Maijama’a, 2020. "Causal Relationship between Renewable Energy Consumption and Unemployment in Nigeria: Evidence from Toda and Yamamoto Causality Technique," Energy Economics Letters, Asian Economic and Social Society, vol. 7(1), pages 46-60, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-2:p:3859-3873. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.