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1. Introduction
Energy is widely regarded as one of the key propelling forces behind any economic activity, especially industrial production. Energy has always played an important role in human development, economic development and general society’s well-being. Therefore, high grade energy resources amplify the impact of technology and create tremendous economic growth (Adegbemi et al., 2013). This is because all economic agents including households and particularly the real sectors require energy to contribute meaningfully to overall growth (Akinyemi et al., 2016). Modern society increasingly uses energy for industrial purposes, services, homes, transportation and other general purposes (International Energy Agency, 2016).
World energy-related oil consumption from 1973 to 2014 ranges from 2,252 to 3,761 Mtoe, respectively. In other words, a growth rate of 59.8 per cent in world-oil-related energy consumption was recorded from 1973 to 2014. On the other hand, world electricity consumption between 1973 and 2014 grew from 440 to 1,706 Mtoe, representing a 25 per cent growth (International Energy Agency [IEA], 2016). Worldwide industrial sector energy consumption is projected to increase by an average of 1.2 per cent/year, from 222 quadrillion British thermal units (Btu) in 2012 to 309 quadrillion Btu by 2040. From 2012 to 2040, industrial energy consumption in non-OECD countries is projected to grow by an average of 1.5 per cent/year, compared to 0.5 per cent/year in the OECD countries. Non-OECD industrial energy consumption, which accounted for 67 per cent of world industrial sector delivered energy in 2012, would account for 73 per cent of world industrial sector delivered energy consumption in 2040. In Nigeria as a country, electricity consumption in 1990 stood at 8.29 Twh and grew to 9.11 Twh in 2000. In 2010, it was 21.62 Twh, an increase of 38 per cent from 2000 and rose from 24.52 Twh in 2013 to 25.50 Twh in 2014. According to the IEA, (2016), final energy consumption in Nigeria grew from 2,126 Ktoe in 1990 to 3,230 Ktoe in 2000; 7,302 Ktoe in 2010 to 7,334 Ktoe in 2014. All the above buttress the growing need of energy both in production and consumption in the economy.
In Nigeria, energy serves as the pillar of wealth creation. This is evident by its being the nucleus of operations and engine of growth...