Environmental Degradation Channels and Economic Growth in Nigeria (1990-2023)
Journal Title: International Journal of Experimental Research and Review - Year 2025, Vol 47, Issue 1
Abstract
Rapid global economic growth has increasingly been linked with rising environmental degradation, particularly in emerging economies, creating a need for balancing economic expansion and environmental sustainability. Nigeria, with carbon emissions reaching approximately 127.942 megatons and a declining GDP per capita of $1,621 in 2023, exemplifies this critical challenge. This study examines the impact of environmental degradation on the Nigerian economic growth between the periods 1990 and 2023 using the Fully Modified Ordinary Least Squares method to test the hypothesis of the Environmental Kuznets Curve (EKC). It specifically investigates the impact of trade openness, foreign direct investment (FDI), and per capita health expenditure channels in affecting the relationship. The results showed a marginally significant positive correlation between economic growth and carbon dioxide emissions (?=0.028, p=0.066). This suggests that Nigeria is still in the early stage of EKC, where economic expansion is still having a negative environmental impact. While trade openness had no effect, FDI had a significant negative impact on economic growth (?= -0.174, p=0.003), suggesting that current foreign investments may have negative environmental effects. Economic growth was significantly boosted by health expenditure per capita (?=0.876, p=0.000), highlighting the significance of this investment in reducing the negative health effects of the environment and increasing productivity. The study recommends that Nigeria’s National Environmental Standards Regulatory and Enforcement Agency should intensify environmental regulations and encourage green foreign investment in the bid to abate the negative environmental effects linked with economic development. Additionally, the Federal Ministry of Health should increase per capita health spending to enhance labour productivity and reduce environmental health risks, thus facilitating a sustainable economic trajectory that mirrors the EKC turning point.
Authors and Affiliations
Jonathan Ojarikre Oniore, Pureheart Ogheneogaga Irikefe
Keywords
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- EP ID EP766067
- DOI 10.52756/ijerr.2025.v47.015
- Views 15
- Downloads 0
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