Environmental Infrastructure Investment And Economic Growth In Nigeria

Authors: Hassan Anthony Emmanuel Ph.D; Olaniyi Oyinlola
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The study investigated long run equilibrium relationship between what we identified as environmental infrastructure and economic growth in Nigeria. Sustained economic growth is particularly necessary if a country is to witness development and bring about better welfare for its citizens. One way to attain sustained economic growth is for an economy to have efficient and effective infrastructure. The AutoregressiveDistributed Lag (ARDL) bounds testing approach was followed using quarterly series over 1990 to 2016. The study confirmed long-run equilibrium relationship between environmental infrastructure and economic growth in Nigeria. Feedback causality was also identified between electricity and transport output.However, no causality of any form was identified between water output and economic growth in the country. Furthermore, electricity, transport and water outputs used as proxies for environmental infrastructure all have statistically significant relationship with economic growth. Therefore, it is recommended that government should raise infrastructure stock in the Nigerian economy through more investment as this hold the key to diversifying the economy, unlocking job opportunities and set the stage for the emergence of the Nigerian economy into one of the top twenty in the years ahead. As per the effects of these infrastructure on the environment, the government needs to ensure efficient transportation mix that will be friendly to the environment in terms of cutting down on carbon emission. Investment in energy infrastructure going forward, should be directed at renewable sources, while water resources in the country should be preserved because water is life as it is commonly known. Greater access to clean water by all irrespective of location, has implication for healthy citizen and by extension, economic growth.