IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 11 NO. 1 2025
DOI: 10.56201/ijebm.vol.11.no1.2025.pg108.148

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Energy Consumption and Quality of Life in Nigeria

Ogorchukwu Ahiakwo, Oliseeloke Olise

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Abstract

This study investigates the impacts of energy consumption and quality of life in Nigeria, measured by indicator such as the Human Development Index (HDI). Data used for the study was gotten from the central bank of Nigeria statistical bulletin (2023) and the estimation was conducted with autoregressive distributed lagged (ARDL) approach. Findings reveal that kerosene consumption significantly enhances quality of life, with a 0.034146 and 0.008923 increase in the long and short run, respectively, for every percentage rise in usage. Conversely, premium motor spirit (PMS) consumption has detrimental effects, reducing quality of life by -0.061891 in the long run and - 0.025059 in the short run due to associated environmental and health challenges. Income inequality, represented by the Gini coefficient, surprisingly shows a positive correlation with quality of life, highlighting structural inefficiencies and the need for policy reforms. Electric power consumption and its lagged values exhibit an insignificant impact on life quality, reflecting systemic inefficiencies that necessitate substantial reforms to ensure reliable electricity as a driver of socio-economic development. Diesel consumption demonstrates instability, with lagged values positively influencing life quality while current values remain insignificant. The study emphasizes the critical role of energy consumption patterns in shaping quality of life in Nigeria. Targeted energy policies promoting cleaner alternatives, equitable resource distribution, and investments in public health and infrastructure are essential for sustainable improvements in living standards and life expectancy. Recommendations include prioritizing renewable energy, enhancing kerosene distribution as a transitional energy source, addressing income inequality, and strengthening governance frameworks to implement and monitor energy and environmental policies effectively. These findings provide actionab

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Diener, E., & Suh, E. (1997). Measuring quality of life: Economic, social, and subjective
indicators. Social Indicators Research, 40(1-2), 189-216.
Helliwell, J., Layard, R., & Sachs, J. (2022). World Happiness Report. United Nations
Sustainable Development Solutions Network.
Putnam, R. D. (2000). Bowling Alone: The Collapse and Revival of American Community.
Simon & Schuster.
Raworth, K. (2017). Doughnut Economics: Seven Ways to Think Like a 21st-Century
Economist. Chelsea Green Publishing.
Ryff, C. D., & Keyes, C. L. M. (1995). The structure of psychological well-being revisited.
Journal of Personality and Social Psychology, 69(4), 719-727.
Sen, A. (1999). Development as Freedom. Oxford University Press.
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