This study examines the impact of natural gas utilization on Nigeria’s industrial sector, aligning with the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure). Using an Autoregressive Distributed Lag (ARDL) model, the research analyzes the short-run and long-run dynamics between industrial output (LOG_IND_OP), natural gas supply (LOG_NG_SD), GDP (LOG_GDP), and inflation (LOG_INF). The findings reveal a significant short-run relationship, where a 1% increase in natural gas supply boosts industrial output by 0.33%, while GDP has a stronger positive effect (0.9%). Inflation, however, shows no short-term impact. The bounds test indicates no long-run cointegration, though weak evidence suggests a potential 1.32% industrial growth from increased natural gas supply at a 10% significance level. The study highlights the crucial role of natural gas in Nigeria’s industrial expansion, supporting energy transition theories and the Environmental Kuznets Curve (EKC) hypothesis, which posits that the adoption of cleaner energy can enhance industrial productivity while mitigating environmental degradation. Policy recommendations emphasize stabilizing natural gas supply, investing in infrastructure, and adopting adaptive industrial policies to sustain growth. The absence of long-run equilibrium highlights the need for agile strategies that align with Nigeria’s energy transition goals, ensuring industrial resilience against external shocks while fostering sustainable development.
| Published in | Journal of Energy and Natural Resources (Volume 14, Issue 3) |
| DOI | 10.11648/j.jenr.20251403.11 |
| Page(s) | 81-91 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2025. Published by Science Publishing Group |
Natural Gas, Industrial Growth, ARDL Model, SDGs, Energy Policy, Economic Growth
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APA Style
Oduka, U. M. (2025). The Role of Natural Gas in Driving Industrial Growth in Nigeria: An ARDL Approach. Journal of Energy and Natural Resources, 14(3), 81-91. https://doi.org/10.11648/j.jenr.20251403.11
ACS Style
Oduka, U. M. The Role of Natural Gas in Driving Industrial Growth in Nigeria: An ARDL Approach. J. Energy Nat. Resour. 2025, 14(3), 81-91. doi: 10.11648/j.jenr.20251403.11
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Download@article{10.11648/j.jenr.20251403.11,
author = {Ugbede Mathew Oduka},
title = {The Role of Natural Gas in Driving Industrial Growth in Nigeria: An ARDL Approach
},
journal = {Journal of Energy and Natural Resources},
volume = {14},
number = {3},
pages = {81-91},
doi = {10.11648/j.jenr.20251403.11},
url = {https://doi.org/10.11648/j.jenr.20251403.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jenr.20251403.11},
abstract = {This study examines the impact of natural gas utilization on Nigeria’s industrial sector, aligning with the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure). Using an Autoregressive Distributed Lag (ARDL) model, the research analyzes the short-run and long-run dynamics between industrial output (LOG_IND_OP), natural gas supply (LOG_NG_SD), GDP (LOG_GDP), and inflation (LOG_INF). The findings reveal a significant short-run relationship, where a 1% increase in natural gas supply boosts industrial output by 0.33%, while GDP has a stronger positive effect (0.9%). Inflation, however, shows no short-term impact. The bounds test indicates no long-run cointegration, though weak evidence suggests a potential 1.32% industrial growth from increased natural gas supply at a 10% significance level. The study highlights the crucial role of natural gas in Nigeria’s industrial expansion, supporting energy transition theories and the Environmental Kuznets Curve (EKC) hypothesis, which posits that the adoption of cleaner energy can enhance industrial productivity while mitigating environmental degradation. Policy recommendations emphasize stabilizing natural gas supply, investing in infrastructure, and adopting adaptive industrial policies to sustain growth. The absence of long-run equilibrium highlights the need for agile strategies that align with Nigeria’s energy transition goals, ensuring industrial resilience against external shocks while fostering sustainable development.},
year = {2025}
}
TY - JOUR T1 - The Role of Natural Gas in Driving Industrial Growth in Nigeria: An ARDL Approach AU - Ugbede Mathew Oduka Y1 - 2025/07/22 PY - 2025 N1 - https://doi.org/10.11648/j.jenr.20251403.11 DO - 10.11648/j.jenr.20251403.11 T2 - Journal of Energy and Natural Resources JF - Journal of Energy and Natural Resources JO - Journal of Energy and Natural Resources SP - 81 EP - 91 PB - Science Publishing Group SN - 2330-7404 UR - https://doi.org/10.11648/j.jenr.20251403.11 AB - This study examines the impact of natural gas utilization on Nigeria’s industrial sector, aligning with the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure). Using an Autoregressive Distributed Lag (ARDL) model, the research analyzes the short-run and long-run dynamics between industrial output (LOG_IND_OP), natural gas supply (LOG_NG_SD), GDP (LOG_GDP), and inflation (LOG_INF). The findings reveal a significant short-run relationship, where a 1% increase in natural gas supply boosts industrial output by 0.33%, while GDP has a stronger positive effect (0.9%). Inflation, however, shows no short-term impact. The bounds test indicates no long-run cointegration, though weak evidence suggests a potential 1.32% industrial growth from increased natural gas supply at a 10% significance level. The study highlights the crucial role of natural gas in Nigeria’s industrial expansion, supporting energy transition theories and the Environmental Kuznets Curve (EKC) hypothesis, which posits that the adoption of cleaner energy can enhance industrial productivity while mitigating environmental degradation. Policy recommendations emphasize stabilizing natural gas supply, investing in infrastructure, and adopting adaptive industrial policies to sustain growth. The absence of long-run equilibrium highlights the need for agile strategies that align with Nigeria’s energy transition goals, ensuring industrial resilience against external shocks while fostering sustainable development. VL - 14 IS - 3 ER -
Emerald Energy Institute, University of Port Harcourt, Choba, Nigeria
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