Gas Industry in Nigeria: Production, Utilization and the Impact on the Economy

ABSTRACT

A key policy objective ofsustainable economic development,

especially in any developing country like Nigeria, is to

establish energy development paths that are both economically

e.f .f icient and sustainable. However, this depends significantly

012 full utilization ofsuch resources. This resear~hw ork

adopts an econometric approach to evaluate both the impact

and the sustainability of Gas utilization in the Nigerian

economy. Also, it examines the structure ofgas flaring in

Nigeria in relationship to the imposition oJfine on flared gas.

The regression results and tlze co-integration tests show that

utilization ofNigerian natural gas does not only impact

positively on the economy; it is also sustainable. On the other

hand, this research work equally reveals that the imposition of

.fine on.fZaflared gas since 1984 has not led to any structural

change on tlze level offared gas. Hence there is the need jor

government to always use analytical tools to evaluate its

policy inzplernentations. Finally, this research work offers

some policy recommendationsfor effective planning,

management and development ofgas industry in Nigeria.