This study investigates the causal relation between energy consumption and economic growth in Nigeria. Time series data was generated covering 1970 to 2009 periods. The study used both aggregated and disaggregated data of energy consumption; including coal, petroleum, gas, and electricity. In analyzing the data, we employ the Augmented Dickey Fuller unit root tests and Johansen cointegration tests allowing for Granger causality test. The results infers that neither total energy consumption nor economic growth affect each other. On the other hand, finding reveals that petroleum, coal and electricity consumption leads to economic growth without feedback. Moreover, bidirectional causality between economic growth and gas consumption was found. The implication of the finding is that an energy conservation policy will retard economic growth for Nigeria. This imply that energy act as an engine of growth for the country and so the neutrality hypothesis of energy consumption and economic growth is not supported, by this study, in Nigeria.
Economic growth, Nigeria, energy consumption, cointegration, causality
