Gas Industry In Nigeria: Production, Utilization And The Impact On The Economy

ABSTRACT

A key policy objective of sustainable economic development, especially in any developing country like Nigeria, is to establish energy development paths that are both economically efficient and sustainable. However, this depends significantly on full utilization of such resources. This research work adopts an econometric approach to evaluate both the impact and the sustainability of Gas utilization in the Nigerian economy. Also, it examines the structure of gas flaring in Nigeria in relationship to the imposition of fine on flared gas. The regression results and the co-integration tests show that utilization of Nigerian 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 flared gas since 1984 has not led to any structural change on the level of flared gas. Hence there is the need for government to always use analytical tools to evaluate its policy implementations. Finally, this research work offers some policy recommendations for effective planning, management and development of gas industry in Nigeria.