Effect of Non - Renewable Energy on Manufacturing Output in Nigeria

The role of energy, especially non-renewable energy in promoting manufacturing sector activities and operations in developing countries like Nigeria cannot be over-emphasized. This paper investigated the effect of non-renewable energy on textile and clothing output as a sub-sector of the manufacturing sector in Nigeria using time series data covering the period 1986 to 2021. Expost -Facto design was employed as a guide. The study used annual time series data on hydro-electricity, petroleum and gas energy respectively as components of non-renewable energy and textile and clothing manufacturing sub-sector output in Nigeria spanning from 1986 to 2022. Data used were obtained from the Central Bank of Nigeria (CBN) Publication and the World Development Indicators (WDI) considered as reliable sources of data for econometric analysis. The ARDL regression technique was used to estimate depicting the relationship between the variables, while the econometric properties of the data were determined using the Phillip-Perron (PP) unit root test and the Bounds cointegration methods. Mean, kurtosis and skewness were employed to describe the data. Results showed among others, that textile and clothing (coefficient, 1.25449; probability value, 0. 000) has significant positive effect on output level. Coal energy consumption (CEC) (coefficient, -6.665467; p, 0.7170), while petroleum energy consumption (PEC) (coefficient, -0.090996; p-value, 0. 6910) had no significant negative effect on textile and clothing output level. Furthermore, gas energy consumption (GEC (coefficient, 19.80158, p, 0.0069) had significant positive effect on textile and clothing output in Nigeria. The Paper concluded that non-renewable energy has no significant effect on textile and clothing output in Nigeria. The study recommended among others, that alternative energy sources, particularly renewable sources should be explored by the federal ministry of petroleum for enhanced economic growth, particularly of textile and clothing output.