ENERGY PRICE FLUCTUATIONS AND ECONOMIC INEQUALITY IN NIGERIA

Autores/as

  • Ijeoma Blessing Unachukwu Department of Economics Education, School of Arts and Social Sciences, Federal College of Education (Technical), Umunze, Anambra State, Nigeria
  • Chinasa Ifeoma Obi Department of Economics, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria
  • Veronica Nosike Ebele Department of Economics Education, School of Arts and Social Sciences, Federal College of Education (Technical), Umunze, Anambra State, Nigeria
  • Stephen Chidozirim Anukam Department of Cooperative and Rural Development, University of Agriculture and Environmental Science, Umuagwo, Imo State, Nigeria

DOI:

https://doi.org/10.46827/ejefr.v9i4.2043

Palabras clave:

energy price, economic inequality, Nigeria

Resumo

The study examined the role of energy price fluctuations in widening economic inequality across generations in Nigeria from 1985 to 2023 using data from the Central Bank of Nigeria (CBN) Statistical Bulletin, World Development Indicators, International Energy Agency and Worldwide Governance Indicators (2023) publications. Economic inequality served as the dependent variable, while oil price, gas price, expenditure on social welfare and control of corruption were utilized as the explanatory variables. The Augmented Dickey Fuller (ADF) test was used to ascertain the stationarity of the model, and it was discovered that the variables were integrated at first difference, I(1). Consequently, the Johansen co-integration test was employed to ascertain the long-run relationship of the variables. The results from both the Trace statistics and Max-Eigen statistics showed that there was no co-integration, hence establishing no long-run relationship between energy price fluctuations variables and economic inequality in Nigeria. The econometric diagnostics utilized the GARCH model, and the findings of the study do not provide strong evidence that energy price fluctuations significantly influence economic inequality across generations in Nigeria. It is therefore recommended that exploring alternative factors may provide insights into the drivers of economic inequality in Nigeria, even if energy price fluctuations do not show a significant direct impact.

 

JEL: C22, C82, H2, H24, H24

 

Article visualizations:

Hit counter

Biografías do autor/a

  • Ijeoma Blessing Unachukwu, Department of Economics Education, School of Arts and Social Sciences, Federal College of Education (Technical), Umunze, Anambra State, Nigeria

    Dr. Ijeoma Blessing Unachukwu is a lecturer in the Department of Economics Education at Federal College of Education (Technical), Umunze. She holds her Bachelor's degree (Bsc) in Economics from Anambra State University, now COOU, holds her Master’s of Science (Msc) in Economics from Imo State University and her PhD in Economics at Chukwuemeka Odumegwu Ojukwu University.  She is a researcher and has published many papers in many reputable journals, both local and international. She is currently the Head of Department in the Economics department at Federal College of Education (Technical).

  • Chinasa Ifeoma Obi, Department of Economics, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria

    Dr. Chinasa Ifeoma Obi is a lecturer in the Department of Economics at Nnamdi Azikiwe University, Awka, Anambra State. She holds a Bachelor's degree (BSc) in Economics from Nnamdi Azikiwe University, a Postgraduate Diploma (PGD) in Economics from Nnamdi Azikiwe University, a Master's degree (MSc) in Economics from Chukwuemeka Odumegwu Ojukwu University, and a PhD in Economics from the same institution. She is an active member of the Nigerian Economic Society (NES) and the Nigerian Economic Society of Female Professionals (NESFP).

  • Veronica Nosike Ebele, Department of Economics Education, School of Arts and Social Sciences, Federal College of Education (Technical), Umunze, Anambra State, Nigeria

    Ebele Veronica Nosike is a lecturer in the Department of Economics Education at Federal College of Education (Technical), Umunze. She holds her Bachelor's degree (B.Sc) in Economics from Nnamdi Azikiwe University Awka, Anambra State, holds her Master’s of Science (MSc) in Economics from Imo State University Owerri, and is currently pursuing her PhD in Economics (Public Sector and Finance) at Imo State University Owerri. She is a researcher and has published many papers in many reputable journals, both local and international. 

  • Stephen Chidozirim Anukam, Department of Cooperative and Rural Development, University of Agriculture and Environmental Science, Umuagwo, Imo State, Nigeria

    Anukam Chidozirim Stephen (PhD) is a committed academic, economist, and devoted Catholic who demonstrates a profound dedication to education and research. Hailing from Owalla Uratta in the Owerri North Local Government Area of Imo State. His educational path commenced at Community Primary School, Owalla and Uratta Secondary School, both located in Uratta, Owerri North, Imo State. He followed his enthusiasm for economics at the tertiary level, achieving a Bachelor of Science (B.Sc.) degree in Economics from the esteemed Imo State University, Owerri, in Imo State. Subsequently, she earned a Master of Science (M.Sc.) degree in Economics from Imo State University and ultimately obtained his Doctorate of Philosophy (PhD) in Development Economics Sector, Imo State University, Owerri. Dr. Anukam Chidozirim Stephen serves as a respected lecturer at the University of Agriculture and Environmental Sciences, Umuagwo, Imo State, where he shares his knowledge with the upcoming generation of leaders. He skillfully integrates his teaching responsibilities with active academic research, providing significant contributions to his discipline. In addition to his professional achievements, Dr. Anukam Chidozirim Stephen is happily married and is successfully managing a rewarding family life alongside a flourishing and influential career, achieved by hard work.

Citas

Acemoglu, D. & Robinson, J. (2012). Why nations fail: The origins of power, prosperity, and Poverty. Crown Business, New York. Retrieved from https://ia801506.us.archive.org/27/items/WhyNationsFailTheOriginsODaronAcemoglu/Why-Nations-Fail_-The-Origins-o-Daron-Acemoglu.pdf

Akinlo, A. E. (2024). Oil price shocks and income inequality in Nigeria: Evidence from a nonlinear ARDL approach. African Journal of Economic Review, 12(1), 1-24. Retrieved from https://ideas.repec.org/a/ags/afjecr/340552.html

Bhattacharya, S. & Williamson, J. G. (2015). Distributional consequences of commodity price shocks: Australia over a century. Income and Wealth, 62(2), 223-244. Retrieved from https://www.roiw.org/2016/n2/2.pdf

Bolarinwa, S. T. & Akinlo, A. E. (2021). Is there a nonlinear relationship between financial development and income inequality in Africa? Evidence from a dynamic panel threshold. The Journal of Economic Asymmetries, 24(C), 1-32. https://doi.org/10.1016/j.jeca.2021.e00226

Carmignani, F. (2013). Development outcomes, resource abundance, and the transmission through inequality. Resource and Energy Economics, 35, 412-428.https://doi.org/10.1016/j.reseneeco.2013.04.007

Farzanegan, M. R., & Krieger, T. (2017). The response of income inequality to positive oil rent shocks in Iran: Implications for the post-sanction period. Diskussionsbeitrage, No. 2017-04. Retrieved from https://www.econstor.eu/bitstream/10419/168368/1/896275663.pdf

Goderis, B. & Malone, S. W. (2011). Natural resource booms and inequality: Theory and evidence. The Scandinavian Journal of Economics, 113(2), 388-417. Retrieved from https://www.jstor.org/stable/23016841

Goesling, B. & Baker, D. P. (2008). Three faces of international inequality. Research in Social Stratification and Mobility, 26(2), 183–198. http://dx.doi.org/10.1016/j.rssm.2007.11.001

Guerello, C. (2018). Conventional and unconventional monetary policy vs. household income distribution: An empirical analysis for the Euro Area. Journal of International Money and Finance, 85(7), 187-214. https://doi.org/10.1016/j.jimonfin.2017.11.005

Howie, P. & Atakhanova, Z. (2014). Resource boom and inequality: Kazakhstan as a case study. Resource Policy, 39(3), 71-79. Retrieved from https://doi.org/10.1016/j.resourpol.2013.11.004

International Monetary Fund (IMF) (2012). Inequality and economic outcomes in Sub-Saharan Africa. Retrieved from https://www.elibrary.imf.org/display/book/9781513597331/ch003.xml

Jan Luiten, Z., Joerg, B., Foldvari, P. & Van-Leeuwen, B. (2011). The changing shape of global inequality – exploring a new dataset. Utrecht University, Centre for Global Economic History, Working Papers, No. 0001. Retrieved from https://www.roiw.org/2014/n2/24.pdf

Jelilov, G., Abdulahi, A., BilaI, C. & Abdurrahman, I. (2022). Impact of oil price fluctuation on the economy of Nigeria, the core analysis for energy-producing countries. Global Trade in the Emerging Business Environment.Retrieved from https://www.intechopen.com/chapters/73798.

Jung, S. M. & Vijverberg, C. C. (2019). Financial development and income inequality in China – A spatial data analysis. The North American Journal of Economics and Finance, 48,295-320. Retrieved from https://doi.org/10.1016/j.najef.2019.03.001

Krieger, T. & Meierrieks, D. (2016). Does income inequality lead to terrorism? CESIFO Working Paper No. 5821. Retrieved from https://www.ifo.de/DocDL/cesifo1_wp5821.pdf

Mehlum, H., Moene, K. & Torvik, R. (2006). Institutions and the resource curse. The Economic Journal, 116(508), 1-20. Retrieved from https://www.econstor.eu/bitstream/10419/63059/1/354828169.pdf

Naceur, B. S. & Zhang, R. (2016). Financial development, inequality and poverty: Some international evidence. International Review of Economics & Finance, 61, 1-16. https://doi.org/10.1016/j.iref.2018.12.015

O’Farrell, R. & Rawdanowicz, L. (2016). Monetary policy and inequality: financial channels. Retrieved from https://www.cepweb.org/wp-content/uploads/OFarrell.pdf.

Oxfam International (2024). The future is equal. Retrieved from https://nigeria.oxfam.org/latest/press-release/seven-richest-africans-have-more-wealth-poorest-half-continents-population.

Saari, M. Y., Dietzenbacher, E. & Los, B. (2016). The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia. Ecological Economics, 130, 25-36. https://doi.org/10.1016/j.ecolecon.2016.05.021

Stiglitz, J. E. (2015). Inequality and economic growth. Political Quarterly, 86(S1), 134-155. Retrieved from https://business.columbia.edu/sites/default/files-efs/imce-uploads/Joseph_Stiglitz/Inequality%20and%20Economic%20Growth_0.pdf

Thorton, J. & Tommaso, C. D. (2019). The long-run relationship between finance and income inequality: Evidence from panel data. Finance Research Letters, 32, 40-62. https://doi.org/10.1016/j.frl.2019.04.036

World Bank (2022). The economic impacts of the COVID-19 crisis. Retrieved from https://www.worldbank.org/en/publication/wdr2022/brief/chapter-1-introduction-the-economic-impacts-of-the-covid-19-crisis.

United Nations (2024). Inequality – bridging the divide. Retrieved from https://www.un.org/en/un75/inequality-bridging-divide#:~:text=Inequalities%20are%20not%20only%20driven,persist%2C%20within%20and%20between%20countries

Descargas

Publicada

2025-09-22

Número

Vol. 9 Núm. 4 (2025)

Sección

Articles