International Journal of Science and Healthcare Research

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Original Research Article

Year: 2016 | Month: January-March | Volume: 1 | Issue: 01 | Pages: 38-44

Analysis of the Effect of Gas Utilization on the Economy of Nigeria


Oghenegare E. Eyankware


Department of Gas Engineering, Faculty of Engineering, University of Port-Harcourt, P. M. B 5323, Rivers State, Nigeria.




This research assesses the relationship between gas utilisation and the economic growth rate of Nigeria. The study was motivated by the desire to bring to the limelight, Nigeria’s abundant natural gas resource which is not being optimally utilized. The methodology used to establish the relationship is a statistical tool, Regression Analysis which determined the nature of the interaction between Gross Domestic Product (GDP) and amount of gas utilized in Nigeria. A model made up of GDP as a proxy variable and Gas Produced (GP), Gas Utilized (GU), Gas Flared (GF) as independent variables was built based on Cobb-Douglas production function and analyzed using Econometric Views software (Eviews 8.0) in which annual time series data from 2004 till 2014 were used. It was found out that the coefficient of Gas Utilized is positive (α2 = 1.934996) which implies that Gas Utilized (GU) is directly related to the GDP of the nation. The study recommends that the Nigeria Gas Master Plan be fully implemented and appropriate policies that will domesticate Nigeria’s natural gas resources should be enacted by the Federal Government of Nigeria.


Keywords: Gas utilized, Gas Produced, Gas Flared, Reserves, Economy and Nigeria.

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