The Effects of Manufacturing Sector Output on Environmental Sustainability in Nigeria from 1990 to 2019

The study examined the effects of manufacturing sector output on environmental sustainability in Nigeria from 1990 to 2019. The variables used in the study are CO2 emissions as the dependent variable, and manufacturing sector output as the independent variable, with foreign direct investment, electricity production and population density applied as control variables. Co-integration tests indicated the presence of a long-run relationship among the variables of the study. The study employed the Autoregressive Distributed Lag Model (ARDL) for regression analysis. The result of the regression analysis indicates that the second lagged period of CO2 emissions has a negative impact on CO2 emissions in the current period. Also, manufacturing output has an insignificant effect on the rate of carbon dioxide emissions in Nigeria, both in the first and second lagged periods. However, electricity production has a significant effect on CO2 emissions in Nigeria. In addition, among the control variables of the study (FDI, PPD and EPD), foreign direct investment exhibits an insignificant effect on environmental sustainability in Nigeria. The study recommends that the government institutes and empowers environmental regulatory agencies that will help check environmentally harmful practices by manufacturing firms and industrial areas in the country.