ADSU International Journal of Applied Economics, Finance and Management

Electricity Consumption And Economic Growth In Nigeria

Abstract

This study examines the impact of electricity consumption on economic growth in Nigeria between 1980-2022. The study was conducted using time series data which were collected from World Bank database. The data were analyzed using various techniques such as, descriptive analysis, unit root test, Autoregressive Distributed Lag (ARDL) estimation as well diagnostic tests. The long run ARDL model on electricity consumption, employment and Gas exhibit positive relationship to economic growth, and statistically significant at 5% level, while inflation and petroleum reveals a negative relationship and statistically significant at 5% level. The finding of the study suggests that measures be taken towards electricity conservation to enhance efficient consumption of electricity towards increasing economic growth in Nigeria, also the government should make every effort that relates to making electricity available and to ensure efficient and adequate access, by investing heavily in electricity considering the positive influence that electricity consumption has on economic growth in the long-run.