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Industrial policies were developed to stimulate and provide opportunities for prospering industrial activities following the decline of investment in the agricultural sector. This followed the discovery of crude oil in Nigeria. Electricity, gas, steam and air-conditioner, an industrial sub-sector is very crucial and requisite channel for industrial development, whether for automated, machines services or computer manufacturing processes. Failure in energy and power supply, as well as gas flaring remains a fundamental problem in Nigeria’s development. This study examined the impact of electricity and gas sub-sector of industrial sector on economic growth in Nigeria using data from 1980 to 2020. Vector error correction mechanism was used to determine the impact of the independent variables on the dependent variable. In the short run, our study shows the existence of positive, non-significant impact of electricity and gas output on economic growth. However, in the long run there was positive significant impact of electricity and gas output on economic growth in Nigeria within the period of study. The implication of the result is that adequate production and utilization of electricity and gas will spur economic activities that will generate economies of scale; since every component of the economy (industry, urbanization, modernized farming, etc) extensively demand for electricity and gas. Also, efficiency of electricity and gas would reduce energy bills for poor households, helps the nation to tackle greenhouse gas emissions. The continues gas flaring and consistent power cut in electricity in Nigeria affected industrial sector in Nigeria. This study showed that there is positive significant impact of electricity and gas on economic growth if there is intentional implementation of power policy with conscious disciplinary actions to control defaulters and make substantial investment that would stimulate industrial activities to spur economic growth.