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ReserarchID
829DY
Crossref Journal DOI 10.17406/GJHSS
Print ISSN 0975-587X
e-ISSN 2249-460X
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The objective of this study is to investigate the influence of energy use on the level of economic development. The case study is limited to oil and gas sub-sectors because they are regarded as the key sub-sectors in the Nigerian energy sector. The methodology for this study entails the followings; ordinary least square regression, Johansen method of co-integration test and vector error correction model (VECM). The findings show that total investment and aggregate oil consumption are the significant variables to influence the level of economic development in Nigeria. The findings of the co-integration test shows that there exists a long run co-integration among the variables and 15 coefficients of the estimated 44 coefficients are significant to explain the long run co-integration among the variables. Furthermore, oil consumption significantly affects the overall activities of the Nigerian economy. Therefore, it is recommended that the government reconsider the oil subsidy policy once again purposely to achieve a sustainable economy.
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