Nigeria's Fossil Fuel Energy Consumption-Gdp Relation and Its Effect on National Hdi:2005-2022

Abstract

The correlation between energy usage and economic growth is widely acknowledged. The placement within the dynamics of Nigeria's economic growth and fossil fuel usage is evaluated in this paper. Retrieved and processed data from reliable databases, such as "Our World in Data"and THE WORLD BANK, covering the years 2005 to 2022, were used to analyze the following: percentage of total primary energy consumption (fossil fuel), percentage of consumption per capita, percentage of total Gross Domestic Product (GDP), percentage of GDP per capita, and overall Human Development Index (HDI). The results showed fluctuations in GDP growth rates in tandem with stable energy consumption, a continuous reliance on fossil fuels in the face of a slow but steady rise in the HDI, and economic difficulties in certain years in spite of stable energy consumption. In contrast to predictions, the country's HDI, which has been rising steadily over time, was mostly unaffected by the non-linear link between GDP and fossil fuel usage. The study also showed variations in Adjusted Net Savings, indicating the unpredictability of the country's energy sector in the face of political and economic unpredictability. Notwithstanding these obstacles, the HDI showed a slow but noticeable improvement, suggesting that the income and savings Nigeria's petroleum resources provide to its population are not very beneficial. Considering the findings, policy-based recommendations were also offered. © 2024 IEEE.