Household’s Level Fuel Switching in Nigeria

Abstract

This paper examines the household level fuel switching in Nigeria in the light of energy transitiontheories. The study used a survey panel data wave 3 based on the General household survey by NBS (2016). The descriptive results show that there is prevalence of different fuel, energy expenditure share and multiple-fuel use patterns among all the income groups. Hence, it is concluded that there is evidence of multiple fuel use in Nigeria in both rural and urban households largely driven by income. Also,
Households tend to move towards the use of LPG use as incomes increase. Whereas electrified households tend to use more of alternative fuel (petrol) and also diesel for urban high income. Increase in income leads to increase in LPG use while the opposite trend is observed for electricity expenditure/use. The study therefore, recommends that in terms of household energy demand policy, fuel stacking model should be the appropriate theory to be adopted for Nigeria.