Acta Universitatis Danubius. Œconomica, Vol 12, No 5 (2016)

Abstract

This paper examines thelink between financial development and energy consumption in Nigeria both inthe long run and the short run using the ARDL Bounds cointegration approach and a sample period of 1971-2014.A significant long-runrelationship was confirmed between financial development and energy consumptionin Nigeria. It was also deduced that the development of the financial sectorexerted positively and significantly on energy demand in the Nigerian economy,both in the short-run and the long-run periods. Italso implies that policies aimed at developing the financial sector have directimplications on energy demand in Nigeria.