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This paper investigated the dynamic relationship between energy consumption and inflation in Nigeria using time series data obtained for the period 1980 to 2017. Applying Autoregressive Distributed Lag (ADL) technique on the variables, the study found that Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK) and Natural gas were noninflationary in Nigeria both in consumption and prices over the period. Also, Automotive Gas Oil (AGO) consumption produces strong evidence of positive inflationary pressure but not in prices throughout the study period. Further, we found a strong causality link between natural gas consumption and inflation in Nigeria. We concluded that inflation in Nigeria is not majorly a demand-pull phenomenon, pulled by energy consumption. We provide both subjective and evidence-based reasons for the economic trend and recommend a bridge in the degrading systemic informality in the energy sector that will deliver real time effect of energy consumption-inflation proposition in Nigeria. Contribution/ Originality: This study documents that changes in Inflation in Nigeria is not necessarily a demand-pull phenomenon, pulled by energy consumption. Changes in inflation could be explained away from energy consumption, notably inflation expectation by the citizenry.

This paper investigates whether and how aid targeted at specific subcategories of economic infrastructure could assist the economies of 14 Economic Community of West African States to attract higher foreign direct investment (FDI) inflow via improvement in infrastructure in water supply and sanitation, energy, transport and ICT. By relying on the three stage least squares estimation technique that is able to account for endogeneity among structural equations, and utilizing data spanning 2005-2018, we found quite interesting results. First, aid targeted at infrastructure indicates a strong positive effect on the countries' infrastructure endowment. Second, there is robust evidence that aid promotes FDI, but not necessarily through the infrastructure channel. Targeted aid appears to exert a positive and direct knock-on effect on FDI-apparently, because investors anticipate the positive effect that targeted aid is almost always inclined to produce on host countries' infrastructure endowment. Finally, aid allocation by Development Assistance Committee donors seems to have been primarily merit-based, followed by weaker evidence for "need". The study recommends, inter alia, more need-based aid allocation, particularly in economies where initial infrastructure endowment is minimal.

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We ask the data whether and how aid targeted at specific sub-categories of economic infrastructure could assist ECOWAS economies to attract higher Foreign Direct Investment (FDI) inflow via improvement in infrastructure in Water Supply and Sanitation (WSS), energy, transport, and ICT. By relying on the 3SLS estimation technique that is able to explicitly account for dependencies between 3 structural equations on the allocation of targeted aid, the determinants of infrastructure, and the determinants of FDI – we found quite interesting results. First, aid targeted at infrastructure indicates strong positive effect on the countries’ infrastructure endowment, as expected. Second, there is robust evidence that aid promotes FDI but, surprisingly, not necessarily through the infrastructure channel. Targeted aid appears to exert a positive and direct knock-on effect on FDI - apparently, because investors anticipate the positive effect that targeted aid is almost always inclined to produce on host countries’ infrastructure endowment. Finally, aid allocation by Development Assistance Committee donors seems to have primarily been merit-based, followed by weaker evidence for ‘need’. Therefore, we recommend more need-based aid allocation particularly in economies where initial infrastructure endowment is minimal. There is also need for extended effort at index construction (e.g., index of infrastructure need) and data collection to drive country-case studies. This should identify the transmission channel from aid to FDI and how the associated binding constraints could be overcome.