NDIC Quarterly vol. 35 no. 34 Sep & Dec 2020

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Nigeria Deposit Insurance Corporation (NDIC)

Introduction; Brief Review of the Literature; Data and Methodology; Results and Discussion; Conclusion; References

The question of how financial development drives energy consumption in Nigeria probes into responses of energy users to developments in the financial sector. The International Energy Agency (IEA) in its 2017 report ranked Nigeria as the 10th and 6th net exporter of natural gas and crude oil, respectively. This vantage position notwithstanding, Nigeria has not been able to meet its domestic demand due to several capacity and management challenges. Hence, consumers opt for biofuel and imported oil products. The seemingly ‘costless’ biofuel and waste that constitutes about 90 percent of final energy consumption are used mainly by residential, while industry and transport sectors use oil products and natural gas (IEA, 2017). The major component of this biofuel is the fuelwood or firewood hence its increased use compelled by any factor could worsen the problem of deforestation in Nigeria.