REVISITING THE ENVIRONMENTAL KUZNETS RELATION IN NIGERIA: AN EMPIRICAL STUDY OF ECONOMIC AND ENVIRONMENTAL TRENDS

Abstract

This study reexamines the Environmental Kuznets Curve (EKC) in the context of Nigeria, exploring the relationship between economic growth and environmental degradation. The EKC hypothesis suggests that as an economy grows, environmental degradation worsens initially, but improves once a certain income threshold is reached. While some studies support this theory, others have produced mixed results, largely due to the oversimplification of the relationship between economic growth and environmental quality. The study specifically focuses on Nigeria, assessing the EKC hypothesis using indicators of environmental degradation such as CO₂ emissions, fossil fuel consumption, resource depletion, and erosion. The study aims to determine if a relationship exists between these environmental indicators and per capita GDP, whether the relationship follows the EKC pattern, and if Nigeria has reached the income threshold where economic growth begins to benefit the environment. Using time-series data from 1981 to 2023 sourced from the World Bank, the study employs threshold regression analysis to test the EKC. Results indicate that while some models support the EKC theory, the relationship is not consistent across all environmental indicators. The study concludes that for Nigeria to achieve sustainable and balanced growth, the government should implement green technologies, promote renewable energy, adopt circular economy models, and enforce stricter environmental regulations to mitigate pollution, preserve resources, and combat climate change. These measures could help Nigeria transition to a more environmentally sustainable growth trajectory.