ENERGY COST AND PROFITABILITY OF NIGERIAN QUOTED MANUFACTURING FIRMS
Abstract
The study examined the impact of energy costs on the profitability of quoted manufacturing firms in Nigeria from 1990 to 2023. Specifically, it analyzed the relationship between energy costs, electricity consumption, and carbon dioxide emissions, and their effects on the profitability of these firms. Using annual secondary data from the World Bank Development Indicator and adopting the multiple regression technique to analyze the data, the results demonstrated that changes in energy costs, electricity consumption, and carbon dioxide emissions significantly affect the profitability of these firms. Specifically, the study found that a reduction in electricity consumption is positively correlated with profitability, while an increase in carbon dioxide emissions is negatively correlated with profitability. The findings suggest that quoted manufacturing firms in Nigeria can enhance their profitability by reducing their electricity consumption and implementing sustainable practices to decrease carbon dioxide emissions.