Application of smooth transition regression model on natural gas consumption and economic growth

What is it about?

The paper identify the level of natural gas consumption that can be adjudged as capable of improving the growth of the Nigerian economy, investigate whether natural gas consumption is at optimal level in Nigeria and examine the nature and rate to which natural gas consumption affects economic growth in Nigeria at low and high regimes.

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Why is it important?

The findings of the paper revealed that the relationship between natural gas consumption and economic growth in Nigeria is asymmetric, where the natural gas consumption threshold value in the country is 9085.36 standard cubic meters, whereas the level of its consumption in the country is below the optimal level. Further, in both low and high regimes, natural gas consumption has been found to have a positive and significant impact on economic growth in Nigeria. However, the implication of the results is that natural gas consumption in Nigeria should not be less than 9085.36 standard cubic meters and the country should intensify efforts to increase the level of natural gas consumption, as it is below the optimal level and its consumption bolsters the growth of Nigerian economy.