Impact of Renewable Energy Indicators on Sustainable Development in Nigeria

This study investigated the impact of renewable energy indicators on sustainable development in Nigeria over the period 1990 to 2024. The main objective was to examine how solar energy consumption, total biomass consumption, and hydroelectric production influenced sustainable development as measured by the Human Development Index. The motivation for the study was rooted in Nigeria’s persistent energy challenges, its growing reliance on renewable sources, and the urgent need to understand how these transitions translate into human development outcomes. The methodology combined descriptive statistics, unit root tests, bounds testing for cointegration, and the Auto-Regressive Distributed Lag model to analyze both short-run and long-run dynamics. The statistical techniques ensured that the relationships were rigorously examined despite the mix of integration orders among the variables. The findings revealed three distinct outcomes. First, total biomass consumption had a positive but statistically insignificant effect on human development, implying that its dominant traditional use limited its developmental contribution. Second, solar energy consumption had a negative and significant effect, suggesting that despite its rapid growth, structural and institutional challenges such as high costs, weak policy frameworks, and poor integration constrained its ability to improve welfare outcomes. Third, hydroelectric production had a positive and significant effect, confirming its role as the most stable and impactful renewable source for long-term improvements in education, health, and income levels. The error correction mechanism further confirmed a strong speed of adjustment, indicating that the system quickly returned to equilibrium after short-term shocks. The study recommended that the Federal Ministry of Environment and the Energy Commission of Nigeria should lead efforts to modernize biomass through clean technologies. The Rural Electrification Agency and the Nigerian Electricity Regulatory Commission should strengthen financing and grid integration to enhance solar’s developmental impact, while the Federal Ministry of Power and the Transmission Company of Nigeria should prioritize the expansion and climate resilience of hydroelectric infrastructure. Collectively, these actions were necessary to maximize the developmental benefits of renewable energy in Nigeria.

Renewable energy, solar energy consumption, biomass consumption

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