ECONOMIC ANALYSIS OF HOUSEHOLD ENERGY CONSUMPTION IN NIGERIA: EVIDENCE FROM OGUN STATE

The nexus between energy consumption and the economy cannot be over emphasized. Household energy consumption accounts for a large proportion of energy consumption in Nigeria. This study analyzed patterns and determinants of household energy consumption among 160 household in Ado-Odo/Otta area of Ogun state in Nigeria. Fuelwood, kerosene and cooking gas were selected. Data analysis was accomplished using descriptive statistics and regression model. Results of the study showed that the main occupation was farming and about 79% earned below N40, 000 (<$250) monthly. Major cooking energy consumed by 55% is kerosene although 78 of farming household use fuelwood. Regression analysis showed that the unit prices of the energy sources, occupation of household head and the prices of alternative energy sources were consistently significant determinants of demand for all energy sources with their respective signs. Household income influenced consumption of both fuelwood and kerosene while age and education of household heads influenced the consumption of kerosene and gas respectively (all at p<0.05). Policy options for price regulation of fossil-fuels, creating awareness on environmental and health impact of using fuelwood, distribution of efficient cooking devices for better utilization of renewable energy and harnessing the currently flared Liquefied Natural Gas is recommended.