The study focused on the effect of energy consumption and environmental degradation on economic growth in Nigeria. The empirical analysis that was carried out to achieve the objectives mentioned above were diagnostic tests such as unit root, co-integration, Error Correction Model (ECM) and ordinary least square (OLS) which aimed at examing empirically the effect of energy consumption and environmental degradation on economic growth in Nigeria covering the period from 1981 to 2016. The variables employed for measuring the relationship include; Gross Domestic Product per capita (GDP), Electricity Power Consumption (EC) and Carbon emission metric ton per capita (CO2). Based on the data used (secondary data source from Central Bank of Nigeria statistical bulletin, 2016, International Energy Statistics, January 2016 and World Bank Development Indicator), the result of the analysis revealed that the coefficient of error correction model (ECM) at lag one was negative and significant which implies that ECM corrects the disequilibrium in the model at the rate of 33.83 percent per annum. Lastly, in the study the recommendations made include; the establishment of training institute where our youth can be trained and garnered technical know-how on developing alternative electricity generation, sound policies framework should be provided and government should make a giant effort to check and control emission in Nigeria etc.