Socioeconomic Drivers of Renewable Energy Adoption in Nigeria

Abstract

In light of the ongoing global energy shift, this paper examines the socioeconomic factors influencing Nigeria's adoption of renewable energy. By reviewing how income distribution, public spending, energy prices, and job arrangements affect outcomes related to renewable energy, it closes a gap in the body of prior work. This study examines the short- and long-term correlations between important variables using annual data from 1990 to 2022 and an Autoregressive Distributed Lag (ARDL) bounds testing method. The results demonstrate a long-term equilibrium relationship in which income inequality, energy costs, and employment in the fossil fuel sector all significantly impede the adoption of renewable energy. There is no statistically significant long-term impact from government spending, renewable energy employment, or foreign direct investment. However, there is a slight negative link between renewable energy adoption and economic growth. The results emphasise the need for targeted legislative measures to remove societal and sectoral barriers to Nigeria's transition to sustainable energy.