Navigating the Energy Trilemma in Nigeria: Energy Price Inflation, Energy Consumption, and Economic Growth.

Abstract:

With the energy price risen in Nigeria and the domestic economy disruptions. This paper explores how energy inflation inferences both individual consumption behaviour and nation economic performance . Using Auto-regressive distribution lag (ARDL), the study revealed that energy price inflation poses a significant challenge; as it undermines consumer purchasing power and business productivity, and ultimately stifling economic growth. Energy consumption, though showed moderate effect on GDP, implies that simply increasing energy use may not be sufficient to spur economic progress, unless accompanied by efficient energy management and infrastructure development. The study therefore, recommended that Nigeria should focus on enhancing trade openness, stabilizing energy prices, investing in energy efficiency, and ensure that government spending is channeled towards energy sustainable development.