National Electric Energy Supply and Industrial Productivity in Nigeria from 1970 to 2010

Abstract

This study investigates the impact of electric energy supply on the industrial sector productivity in Nigeria from 1970 to 2010. The specific objectives were; to investigate the extent to which electricity supply impacts on industrial development in Nigeria and examine the existence of a long run relationship between electricity supply and industrial productivity in Nigeria. We obtained secondary data from the CBN Statistical Bulletin, using the multiple regression analysis. The result shows that national energy supply have no significant impact on industrial productivity in Nigeria, the ADF test results shows that all the variables are stationary at first difference and that the convergence of industrial output to equilibrium in Nigeria which is below zero (-.9450) equilibrium line points to the possibility of convergence of industrial output at the nearest future. We therefore recommend sustained sanitization and funding of the power sector and the encouragement of private partnership in the power sector, which we believe will enhance the growth of the economy.

Keywords: industrial output, energy consumption and supply, manufacturing output, price level, co-integration and economic growth.