Asian Research Journal of Current Science

The rising energy price and poverty level in Nigeria make it imperative to examine how energy consumption has affected poverty in Nigeria. To achieved the purpose of the study, Automotive gas oil (AGO) consumption, premium motor spirit (PMS) consumption, solar energy consumption, hydropower energy and natural gas-to-power consumption were used as proxies of energy consumption while poverty rate was adopted as the indicator of poverty level.  Annual time series data sourced from National Bureau of Statistics, Nigerian National Petroleum Company Ltd and the World Bank for the period 1990 – 2023 were used and analysed using the Autoregressive Distributive Lag estimation technique due to mixed order of integration of the variables and to facilitate the simultaneous estimation of both short-run and long-run nexus among the variables. The findings of the study indicated that: there is a long-run nexus between energy consumption and poverty rate in Nigeria. AGO consumption, PMS consumption and solar energy consumption all reduced poverty rate in the short-run and long-run. Hydropower energy consumption had unfavourable effect on poverty rate in the short-run and long-run. Likewise, natural gas-to-power consumption had unfavourable and substantial effect on poverty rate in the short-run but has a favourable and substantial effect on poverty rate in the long-run.  Lastly, AGO consumption, PMS consumption, solar energy consumption, hydropower energy and natural gas-to-power consumption have joint substantial effect on poverty rate in Nigeria given the explanatory power of the variables. Consequent on these findings, the study recommends; increase investment in renewable energy source, domestic refining of crude oil and building of gas infrastructure as possible measures of stabilising prices, job creation and poverty reduction in Nigeria.