Nigeria’s manufacturing sector performance: An econometric diagnosis of the effects of renewable energy resources consumption

Despite ambitious objective to strengthen the secondary goods producing sector’s performance via renewable energy utilization, its contribution to gross domestic product has remained relatively poor over time. Thus, this research as its aim; empirically examines how renewable energy resources use impacted on performance of the Nigeria’s manufacturing sector, with the sector’s aggregate domestic outputs, hydro energy use, solar energy use and renewable energy consumption per capita selected as the indicators, and included transportation infrastructure investment as moderating factor in the model. 1990 to 2023 yearly secondary data were extracted ‘from the 2023 Nigerian apex bank’s statistical bulletin, Development Indicators’ data base of the Worl Bank and International Energy Agency’s report. Employing the estimation tool of Autoregressive Distributed Lag, the established short period’s outcome and long-term’s outcome revealed hydro energy consumption as exerted positively insignificant impact on manufacturing sector gross domestic product; solar energy use, renewable energy consumption per person and transportation infrastructure investment appeared to have had significant positive impacts on the sector’s domestic real production. Sequel to the preceding expositions, it is concluded that renewable energy resources use is contributory to enhancing the economy’s manufacturing sector’s performance. Following the concluded empirical outcomes, it is suggested that the Nigerian government and private sector operators should prioritize investments in hydro and solar energies infrastructure to enhance renewable energy generation and supply while improving investment in and upgrading transportation infrastructure, which put together will complementarily reduce operating costs, enhance competitiveness and spur the manufacturing sector’s performance in future. Keywords: Renewable Energy, Hydro Energy, Solar Energy, Transport Infrastructure, Manufacturing Sector, Nigeria, Autoregressive Distributed Lag.