Navigating the Energy Trilemma in Nigeria: Energy Price Inflation, Energy Consumption, and Economic Growth

With the energy price rising in Nigeria and the domestic economy disrupted, this paper explores how energy inflation influences both individual consumption behavior and national economic performance. Using autoregressive distribution lag (ARDL), the study revealed that energy price inflation poses a significant threat as it undermines consumer purchasing power and business productivity, ultimately stifling economic growth. Energy consumption, though it showed a moderate effect on GDP, implies that simply increasing energy use may not be sufficient to spur economic progress unless accompanied by efficient energy management and infrastructure development. The study, therefore, recommended that Nigeria should focus on enhancing trade openness and energy prices, investing in energy efficiency, and ensuring that government spending is channeled towards sustainable energy development.