Does Energy Utilisation Reduce Unemployment? The Nigeria’s Experience

Alwell Nteegah and Tochukwu Michael Dinyelu
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Alwell Nteegah: University of Port Harcourt, Nigeria
Tochukwu Michael Dinyelu: University of Port Harcourt, Nigeria

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 2, 3859-3873

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.

Date: 2025
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