An Evaluation of Domestic Gas Utilization on the Nigerian Economy

Abstract

Natural gas has continued to experience high patronage over the years, largely due to its efficiency as an energy source. Economic growth literature posits that there is a relationship between energy consumption and growth. More recent literature have argued for the efficiency of the form of energy used. The robustness of this relationship is however often questioned. Indeed natural gas remains one of the most efficient forms of energy source, and it is found in abundance in Nigeria with a proven reserve of over 180 trillion cubic feet of natural gas and the ninth country in the world regarding proven natural gas reserves. Hence, given the significant outlays of natural gas to economic growth, this study attempts an evaluation of domestic gas utilisation in Nigeria. Key macroeconomic variables with the theoretical potential of influencing the level of gas utilised in Nigeria were subjected to econometric model testing using time series data from 1980 to 2013. The result in conformity with literature reflected that gas plays a pivotal role in the Nigerian economic advancement.