Analysis of The Impact of Electricity Market on Economic Growth in Nigeria.

Abstract

This work examined the impact of electricity market on economic growth in Nigeria between 1971 and 2014. The supply of electricity affects the prices of outputs from the firms and industries while the demand for electricity affects how much can be supplied and the price of electricity which in turn affects final products produced. The variables used for electricity supply was a disaggregated sources of electricity generation, like oil, hydroelectric and gas, and the demand for electricity was also disaggregated into industrial and residential. Autoregressive Distributed Lag Model was employed after the unit root test showed mixed order of integration. The findings revealed that there was a long run relationship and it is significant. But the short run relationships were not significant although they all showed positive relationship with growth. It was therefore recommended that the power sector be more liberalized for more private participation both at the generation, transmission and distribution levels.

Key Words: Energy, Electricity, Economic Growth, Demand and Supply of Electricity

DOI: 10.7176/JESD/12-20-08

Publication date:October 31^st 2021