Abstract:

Nigeria's financial development and the long-term and short-term influence of energy use on the country's economy were both assessed in the study. The findings of previous studies contradict the theoretical assumptions and predictions from emerging and developing economies, according to which financial progress does not lead to increased renewable energy consumption. Using the ARDL co-integration process and a survey that spanned 60 years, this was tested. Nigeria has a long-term link between the financial sector and renewable energy consumption. This study also determined that despite the short-term effect, the rise of the financial industry has a positive impact on the Nigerian economy because of the high level of energy consumption. Policies that focus on increasing the financial sector's size have significant and far-reaching consequences for Nigeria's energy use. It was discovered that the country's energy demand expanded for over 60 years.