Effect of Economic Growth, Industrialization, and Urbanization on Energy Consumption in Nigeria: A Vector Error Correction Model Analysis

Poor energy production and consumption bedevils the state of Nigeria, for which distribution of energy is concentrated in the wealthy and urban middle class with the country's large poor population denied access.  The current annual production is very low, and development of the sector is a challenge. Basically, additional infrastructure is needed to increase production which can feasibly be acquired through raising energy prices. However, a rise in price prohibits access to services for a large part of the population. Inability to raise energy production has a substantial impact on individuals and businesses alike. For businesses, frequent power outages bring inefficiency in the production of goods and services, resulting in stunted growth for local companies and discouraging international investors. For individuals, poor energy consumption impacts negatively on living standards. The accumulative effect of poor energy production and consumption over the years can greatly impact on the continent's economic growth and development. Present economic conditions may worsen with high population growth and rising urbanisation, hence, the need for a rapid and intensified strategy for energy development of the nation. Consequently, this study analyses the relationship between energy consumption on the one hand and economic growth, industry growth and urban growth for the nation. Using data for the period 1980-2016, a VEC model is analysed with the Granger causality test, impulse response function and variance decomposition. Using the Johansen cointegration test, one cointegrating relationship is found which led to conducting the VECM. It is found that a long run causal relationship exists only for GDP growth. That is, GDP only possess the correct sign and statistically significant level with the speed of adjustment back to equilibrium at 14 per cent. No short-run causal relationship is observed between energy consumption on the one hand and economic growth, industry growth and urban growth. Only FDI as a control variable has a bidirectional short-run causal relationship with energy consumption. Keywords: Energy Production, Economic Development, Industrialization, Urbanization, Energy Challenges JEL Classifications: L38, L51, L98 DOI: https://doi.org/10.32479/ijeep.817

IMPACT OF TERRORISM ON AGRICULTURAL BUSINESS IN BORNO STATE, NIGERIA

This study examines the impact of terrorism on agribusiness in Borno state. Terrorist activities in Borno state dates back to 2009 where a group of Islamic extremists popularly known as Boko Haram (meaning western education is a sin) became violent in their activities. The group operates significantly in north-eastern Nigeria where Borno state is located and since 2009. The presence of the group has led to collapse of socio-economic activities in Borno state among other states. Millions of people have been displaced fromtheir homes and forced to live in camps in neighbouring states. As a result, this study examines the impact of insurgency related activities on agribusiness in BornoState. Agricbusiness in Borno state can be measured using four different parameters, amount of area cultivated, annual crop production, rearing of livestock and fish farming. These are the major agricultural business residents of Borno state are engaged in. However due to unavailability of data, rearing of livestock and fish farming are dropped, thus focusing on area cultivated and annual crop production. As a result of these two variables, two models are developed. The first model measures the relationship between amounts of crop produced with insurgency related killings, while the second model measuresthe relationship between total areasof farmland cultivated with fatalities resulting from terrorist activity. This study employs Ordinary Least Squares methodology and finds that both relationshipsreveal negative results thus indicating statistically significant negative impact of terrorism on agribusiness in Borno State

Impact of Terrorism on Agricultural Business in Borno State, Nigeria

This study examines the impact of terrorism on agribusiness in Borno state. Terrorist activities in Borno state dates back to 2009 where a group of Islamic extremists popularly known as Boko Haram (meaning western education is a sin) became violent in their activities. The group operates significantly in north-eastern Nigeria where Borno state is located and since 2009. The presence of the group has led to collapse of socio-economic activities in Borno state among other states. Millions of people have been displaced fromtheir homes and forced to live in camps in neighbouring states. As a result, this study examines the impact of insurgency related activities on agribusiness in BornoState. Agricbusiness in Borno state can be measured using four different parameters, amount of area cultivated, annual crop production, rearing of livestock and fish farming. These are the major agricultural business residents of Borno state are engaged in. However due to unavailability of data, rearing of livestock and fish farming are dropped, thus focusing on area cultivated and annual crop production. As a result of these two variables, two models are developed. The first model measures the relationship between amounts of crop produced with insurgency related killings, while the second model measuresthe relationship between total areasof farmland cultivated with fatalities resulting from terrorist activity. This study employs Ordinary Least Squares methodology and finds that both relationshipsreveal negative results thus indicating statistically significant negative impact of terrorism on agribusiness in Borno State. JEL Classification: Q10, Q18, Q1