Research Article
The Role of Natural Gas in Driving Industrial Growth in Nigeria: An ARDL Approach
Ugbede Mathew Oduka*
Issue:
Volume 14, Issue 3, September 2025
Pages:
81-91
Received:
16 June 2025
Accepted:
26 June 2025
Published:
22 July 2025
DOI:
10.11648/j.jenr.20251403.11
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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.
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-...
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