Abstract

The aim of this study is to examine the relationship between energy consumption and foreign direct investment inflows on environmental pollution in Nigeria over the period of 1980-2018. Consequently, DOLS and FMOLS approaches were employed as the estimation strategy. The main findings show that energy consumption and manufacturing growth have a significant positive relationship with environmental pollution. This suggests that increasing energy consumption and manufacturing growth will increase environmental pollution. However, FDI inflow has a significant negative relationship with environmental pollution. This implies that increasing FDI inflows will reduce environmental pollution in Nigeria. The implication of these findings is that the use of energy to boost manufacturing growth is at the expense of environmental pollution. Therefore, efficiency is required in the energy mix of Nigeria to reduce the impact of energy consumption on the environment. Equally, government should pay attention to clean FDI inflows to further reduce environmental pollution in the country.

Key words: Energy Consumption; Foreign Direct Investment; Environmental Pollution; Nigeria