Oil Price Shocks and Energy Consumption in Nigeria

The study investigates the impact of oil price shocks on energy consumption in Nigeria using, Bai-Perron Structural Breaks Test, NARDL approach and VAR model to analyse the data spanning from 1978 through 2016. From the results, in the long and short-run, positive and negative changes in bonny light crude oil price positively impact on energy consumption in Nigeria. The study concludes from these findings that irrespective of changes in the price of oil, oil related energy sources are still considered and this is because of the challenges faced in the development of the country's energy sector in general. Based on the findings, the study recommends that strategic investment attention should be paid to alternative sources of energy such as the renewables in order to reduce large dependency on oil related energy such as fossil fuels.