Renewable energy, growth and sustainable development in Nigeria: the role of FDI, inflation and urbanisation

Purpose This study examines the long-run relationship between renewable energy consumption, economic growth, and sustainable development in Nigeria over the period 2000–2023, while controlling for foreign direct investment (FDI), inflation, and urbanisation. It seeks to determine whether renewable energy and growth meaningfully contribute to multidimensional sustainability outcomes in a structurally volatile macroeconomic environment. Design/methodology/approach The study employs Fourier-based cointegration techniques to account for nonlinear dynamics and smooth structural breaks in Nigeria's macroeconomic time series. The Fourier Autoregressive Distributed Lag model is used to test for long-run relationships, while Fourier Integrated Modified OLS (FIMOLS) and Fourier Fully Modified OLS (FFMOLS) estimators provide robust long-run elasticity estimates. Findings The results indicate that renewable energy consumption and economic growth positively influence sustainable development, although their effects are inelastic. Urbanisation exerts a positive but conditional impact, whereas FDI inflows and inflation negatively affect sustainability outcomes. The significance of Fourier terms confirms the presence of structural shifts and cyclical adjustments in Nigeria's development trajectory. Originality/value This study contributes to the African sustainability literature by integrating renewable energy and growth within an SDG-based sustainability framework while explicitly controlling for macroeconomic stability, the structure of foreign investment, and the demographic transition. By applying Fourier-based estimators, it captures structural nonlinearities often overlooked in conventional African time-series analyses. The findings provide policy insights for aligning energy transition, macroeconomic stability, and investment governance with long-term sustainable development objectives in Nigeria and similar Sub-Saharan African economies.