ELECTRICITY GENERATION AND ECONOMIC GROWTH IN NIGERIA: IS THERE ANY LINK?

Main Article Content

CYPRIAN CLEMENT ABUR
JACOB SESUGH ANGAHAR
TORRUAM JAPHETH TERANDE

Abstract

This study examined the relationship between electricity generation and economic growth in Nigeria during the period 1986-2019 and employed the co-integration test, autoregressive distributed lag analysis and Granger causality test techniques. The cointegration test result revealed that there was a long-run relationship between our variable of interest. The study found that electricity is an important factor in economic growth in Nigeria. The result is thus an indication that electricity consumption enhances economic growth enormously. Furthermore, the result from the causality test shows that there is a bi-directional causal relationship between total electricity consumption and economic growth in the long run. The study recommends that the policymaker need to improve the power sector to harness the potential of electricity in growing the economy.

Keywords:
Granger causality, economic growth, electricity, energy generation, sector, productivity

Article Details

How to Cite
ABUR, C. C., ANGAHAR, J. S., & TERANDE, T. J. (2022). ELECTRICITY GENERATION AND ECONOMIC GROWTH IN NIGERIA: IS THERE ANY LINK?. Asian Journal of Current Research, 7(1), 1-7. Retrieved from https://ikppress.org/index.php/AJOCR/article/view/7560
Section
Original Research Article

References

George EO, Oseni JE. The Relationship between Electricity Power and Unemployment Rates in Nigeria. Australian Journal of Business and Management Research. 2012;2(2):10-19.

Somefun OA. The Erratic Electric Power Supply in Nigeria: Causes and Remedy; 2015.

Emovon I, Kareem B, Adeyeri MK. Power generation in Nigeria; problems and solution. International conference of Nigerian Association for Energy Economics. NAEE, Abuja; 2011.

Okafor EO. Development Crisis of the Power Supply and implications for the Industrial Sector in Nigeria. Kanla_Raj Journal. 2008;6:83-92.

Joy N. Evaluating the impact of power pool in selected West African countries for enhanced power supply. PhD dissertation. Department of Electrical/Electronic Engineering. The Michael Okpara University of Agriculture ; 2017.

The World Bank Annual Report 2017: Washington, DC: World National Bureau of Statistics, Capital Importation. Fiscal Statistics. Annual Report: www.nigerianstat.gov.ng Uzor. J., Post Graduate 2020: Diploma Thesis.

Department of Electrical/Electronic Engineering. Michael Okpara University of Agriculture. 11(4) (PDF) Impact of Electricity Supply on Economic Growth: A Nigerian Case Study. Available: https://www.researchgate.net/publication/326812316_

Khobai H, Mugano G, Le Roux P. Exploring the Nexus of Electricity Supply and Economic. Growth in South Africa, International Journal of Energy Economics and Policy. 2017;7(4):240-251(4) (PDF) Impact of Electricity Supply on Economic Growth: A Nigerian Case Study. Available:https://www.researchgate.net/publication/326812316_ [accessed May 20 2020]

Sarker AR, Alam K. Nexus between Electricity Generation and Economic Growth in Bangladesh” Asian Social Science ISSN 1911-2017 E-ISSN 1911-2025. 2010;Vol. 6(12):16-22.

Lean HH, Smyth R. Multivariate Granger causality between electricity generation, exports, prices and GDP in Malaysia. Energy. 2010;35:3640-3648.

Altintas H, Kum M. Multivariate Granger Causality between Electricity Generation, Exports, Prices and Economic Growth in Turkey. International Journal of Energy Economics and Policy Vol. 3, Special Issue. 2013;41-51. ISSN: 2146-4553

Atems B, Hotaling C. The effect of renewable and non-renewable electricity generation on economic growth” Energy Policy. 2018;112:111-118.

Yoon SH, Kim Y. Electricity generation and economic growth in Indonesi. Energy 2006;31(14):2890-2899.

Oyeleke OJ, Akinlo T. Energy generation and economic growth: empirical evidence from Nigeria” Environment, Development and Sustainability; 2019. Available:https://doi.org/10.1007/s10668-019-00476-4

Ogbonna OS, Idenyi OS, Nick A. Power Generation Capacity and Economic Growth in Nigeria: A Causality Approach.” European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online). 2016;8(32):74-90.

Nkalo UK, Agwu EO. Review of the Impact of Electricity Supply on Economic Growth: A Nigerian Case Study” IOSR Journal of Electrical and Electronics Engineering e-ISSN: 2278-1676,p-ISSN: 2320-3331, 2019;14( 1):28-34.

Research Clue. 2020: “The impact of power generation on economic growth: a case study of Nigeria for the years 1980-2017.” https://nairaproject.com/projects/4256.html

Adoghe AU, Gloris AS, Hoper SA. Power Sector Reforms-Effects on Electric Power Supply Reliability and Stability in Nigeria. International Journal of Electrical and Power Engineering. 2009;3(1):36-42. ISSN: 1990-7958

Ogundipe AA, Apata A. Electricity Consumption and Economic Growth in Nigeria; Journal of Business Management and Applied Economics. 2013;2(4):4,5.

Ohwofasa BO, Obeh HO, Erakpoweri J. The Impact of Electricity Supply on Economic Growth, 1980 – 2010: An Error Correction Method. Research Journal of Finance and Accounting. 2015;5(1):2222-1697.