Does Natural Gas Utilization Reduce Unemployment in Nigeria?

Abstract

This study investigates the asymmetric impacts of natural gas utilization on unemployment in Nigeria. The study proxied natural gas utilization by total domestic gas utilization (TDG) while unemployment was proxied by unemployment rate. The study made used of annual time series data which were sourced from National Bureau of Statistics (NBS) report, Nigerian National Petroleum Corporation (NNPC) Annual Statistical Bulletins. Employing the nonlinear autoregressive distributed lag (NARDL) regression framework on time series data from 1990 to 2023, the research offers nuanced insights. Key findings reveal that total domestic gas utilization (TDG) has no long-run effect on unemployment and short-run effects are irrelevant due to symmetry. This research challenges traditional symmetric models, providing crucial insights for Nigerian policymakers to mitigate risks and foster sustainable, inclusive growth by addressing the economy's unique sensitivities to energy.