The importance of energy in the growth and development of a country cannot be over emphasized. Energy demand, supply and pricing exert great impact on social and economic development as well as the living standards and overall quality of life of the population. Energy use also affects environmental quality through deforestation associated with unsustainable biomass energy dependence and greenhouse gas emission from fossil fuel use resulting in global warming.
One important aspect of energy consumption is the household demand for it. There are multiple reasons why the study of household energy consumption pattern and energy requirements is important especially for a densely populated developing country like Nigeria. First, households are major consumers of energy and to a large extent they contribute to the amount of total energy use in the country. Second, household spending and consumption patterns give detail information on the lifestyle of the people. Furthermore, household energy requirements at a disaggregated level help to provide information on the lifestyles of households at the individual level, their energy use and overall standard of living. It also helps to know the extent of penetration of modern energy sources (renewable energy) in the household for heating, cooling and lighting.
Nigeria is endowed with vast natural resources both renewable and non renewable, yet it is observed that modern energy services are neither available nor affordable for a high percentage of the population (Akinwumi et al 2009). Nigeria is among the fifteen largest exporters of crude oil in the world and yet ranks high among nations with poor living standards. In Nigeria, the household sector is the largest energy consuming sector in the economy and accounts for about a quarter of total commercial energy and over 80% of traditional fuel use (Adegbulugbe and Akinbami, 1995; Dayo, 2004). Nigeria has a population of over 140 million and an annual growth rate of about 2.9 percent per annum. Urban population as a percentage of total population has grown tremendously over the years. This has led to large variations in the types of energy used and patterns of consumption among households.