Comparative Analysis of Electricity Consumption among Residential, Commercial and Industrial Sectors of the Nigeria’s Economy

Abstract

Electricity outage is one of the main challenges confronting the residential, commercial and industrial sectors of the Nigeria’s economy.  All attempts at addressing this problem have not yielded the desired results.  This study compares electricity consumption in these three sectors using time series data that covered 35 years period, ranging from 1970 to 2004.  Analysis of variance technique was used in testing the hypothesis postulated from the objective of the study.  The results suggest that electricity consumption differed significantly among the three sectors, with the exception of the industrial versus commercial sectors, at 0.01 level (Fcal=19.805, ?-sign = .000).  The residential sector has the highest mean electricity consumption (396.405 mw per hour).  It is followed in descending order by industrial sector (9223.9429 mw per hour) and commercial sector (175.33629 mw per hour).  A comparison of the mean electricity consumption in each of the three sectors with daily electricity demand of (5000mw per hour) shows that the three sectors are grossly under supplied with electricity.  This reveals the root cause of power outages.  The outcome of this study will be useful in enhancing policies towards eliminating electricity shortages in Nigeria.

Keywords: Electricity, Residential, Commercial, Industrial, Consumption.