A Descriptive Analysis of Nigeria and United State’s Energy Consumption and Economic Growth

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A Descriptive Analysis of Nigeria and United State’s Energy Consumption and Economic Growth

ABSTRACT:- Nigeria with a Gross Domestic Product (GDP) of $469.40 billion in in 2018 ranked 25th globally has formulated a policy objective in 2009 of becoming one of the twenty strongest economies in the world by 2020 referred to as vision 20:2020. However, empirical evidences have found strong linkages between energy consumption and economic growth; thus, the significance of energy for Nigeria to achieve its policy objective cannot be overemphasized. However, Nigeria’s per capita energy consumption in 2018 is 796 kilograms of oil equivalent; however, it is 6,902koe in United States of America (USA) the strongest economy in the world. The aim of this paper is to descriptively demonstrate that sufficient energy is needed for Nigeria’s economic growth as energy arguably contributed to economic growth in USA the global leading economy. Data on per capita energy consumption and GDP on Nigeria and USA are collected and descriptively analysed using the lens of optimal resource utilisation theory. Findings indicate that sustainable energy sufficiency was vital in driving economic growth in the USA; therefore, policy makers in Nigeria must provide sufficient and sustainable energy for the country to achieve its policy goal of becoming one of the twenty strongest economies in the world.

KEY WORDS:- Economic growth, Energy Consumption, Gross Domestic Product, Policy

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