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Rivers State University, Port Harcourt.
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| Title: | Electricity Power Supply and Economic Growth in Nigeria |
| Author(s): | NJIDEOFOR O. A., EWUBARE D. B. & CHUKWU S. N. |
| Abstract: | The study investigated the effect of electricity power supply on economic growth in Nigeria. The scope of the study covered a thirty-year period, spanning from 1993 to 2023. The data for the study were obtained from sources such as, the Central Bank of Nigeria (CBN), the World Bank World Development Indicators (WDI), and Enerdata. The dependent variable of the study is real gross domestic product (RGDP), while the independent variables were comprised of power generation (PG), electric power transmission and distribution losses (PD), and electricity consumption (EC). These data were analyzed using the Augmented Dickey Fuller (ADF) method of unit root testing, the Autoregressive Distributed Lag (ARDL) method of estimation and post estimation analytical tests like, the Serial Correlation LM test, Heteroskedasticity Test, Ramsey RESET, and CUSUM test. The unit root test result showed that PG and EC had no unit root and were stationary at level. However, after first differencing RGDP, and PD became stationary. Further analysis revealed that PG had a significant positive impact on RGDP both in the immediate period and in the lagged periods while PD and EC on the other hand exerted significant influence on RGDP in the lagged period but not in the current or immediate period. The long run result showed that the performance of Nigeria’s RGDP was influenced by PD in the long run. However, PG and EC had no long run effect on RGDP within the evaluation period. The result of the post-estimation tests showed that the models of the study were free from the problems of serial correlation, heteroskedasticity, and model misspecification and that the coefficients of the models are constant throughout the sample period as suggested by the CUSUM test result. The study recommends that policy makers aiming to boost manufacturing should ensure reliable power generation but also address complementary factors such as infrastructure and financing. |
| Keywords: | electricity power supply, economic growth, real gross domestic product (RGDP), power |
| Journal: | Journal of Economic Research and Development Studies Vol 2 No 1 |
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