Electric Power Deficit and Economic Growth in Nigeria: A Sectoral Analysis

<p>In addition to capital and labour, electricity supply is another important factor that promotes economic growth in an economy. Often times, economic resources are used to generate electricity for domestic consumption by different sectors of an economy. In Nigeria however, the generated KWh...

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Autores principales: James Tumba Henry, Bassey Enya Ndem, Ofem Lekam Ujong, Chijioke Mercy Ihuoma
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Publicado: EconJournals 2021
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spelling oai:doaj.org-article:03d5959c028942cda110b9c2526e81662021-11-12T07:27:32ZElectric Power Deficit and Economic Growth in Nigeria: A Sectoral Analysis2146-4553https://doaj.org/article/03d5959c028942cda110b9c2526e81662021-11-01T00:00:00Zhttps://econjournals.com/index.php/ijeep/article/view/11491https://doaj.org/toc/2146-4553<p>In addition to capital and labour, electricity supply is another important factor that promotes economic growth in an economy. Often times, economic resources are used to generate electricity for domestic consumption by different sectors of an economy. In Nigeria however, the generated KWh is far higher than what eventually gets to the final consumers due to technical inefficiencies associated with electric power transmission and distribution in the supply chain resulting in huge losses. Thus, this study investigated the effect of electric power deficit proxied by electric power transmission and distribution losses on economic growth (disaggregated into agricultural and industrial RGDP) in Nigeria. This study employed the Autoregressive Distributed Lag (ARDL) model and time series data from 1981 to 2017. The hypotheses tested in this study were done at 5 and 10 percent levels of significance. The result obtain revealed that  a 1 percent increase in electric power transmission and distribution losses will decrease agricultural output by 3 percent in the long run but insignificant in the short run. Similarly, electric power transmission and distribution losses do not have significant effect on industrial output. It was therefore recommended that the government should construct energy farms to muster and store the electricity that is produced before they are transmitted to the final consumers.</p><p><strong>Keywords: </strong>technical inefficiencies, electric power deficit, economic growth, energy farms</p><p><strong>JEL Classifications: </strong>C12, C13, C30, F43, L70, Q19, Q43</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.11491">https://doi.org/10.32479/ijeep.11491</a></p>James Tumba HenryBassey Enya NdemOfem Lekam UjongChijioke Mercy IhuomaEconJournalsarticleEnvironmental sciencesGE1-350Energy industries. Energy policy. Fuel tradeHD9502-9502.5ENInternational Journal of Energy Economics and Policy, Vol 11, Iss 6, Pp 508-516 (2021)
institution DOAJ
collection DOAJ
language EN
topic Environmental sciences
GE1-350
Energy industries. Energy policy. Fuel trade
HD9502-9502.5
spellingShingle Environmental sciences
GE1-350
Energy industries. Energy policy. Fuel trade
HD9502-9502.5
James Tumba Henry
Bassey Enya Ndem
Ofem Lekam Ujong
Chijioke Mercy Ihuoma
Electric Power Deficit and Economic Growth in Nigeria: A Sectoral Analysis
description <p>In addition to capital and labour, electricity supply is another important factor that promotes economic growth in an economy. Often times, economic resources are used to generate electricity for domestic consumption by different sectors of an economy. In Nigeria however, the generated KWh is far higher than what eventually gets to the final consumers due to technical inefficiencies associated with electric power transmission and distribution in the supply chain resulting in huge losses. Thus, this study investigated the effect of electric power deficit proxied by electric power transmission and distribution losses on economic growth (disaggregated into agricultural and industrial RGDP) in Nigeria. This study employed the Autoregressive Distributed Lag (ARDL) model and time series data from 1981 to 2017. The hypotheses tested in this study were done at 5 and 10 percent levels of significance. The result obtain revealed that  a 1 percent increase in electric power transmission and distribution losses will decrease agricultural output by 3 percent in the long run but insignificant in the short run. Similarly, electric power transmission and distribution losses do not have significant effect on industrial output. It was therefore recommended that the government should construct energy farms to muster and store the electricity that is produced before they are transmitted to the final consumers.</p><p><strong>Keywords: </strong>technical inefficiencies, electric power deficit, economic growth, energy farms</p><p><strong>JEL Classifications: </strong>C12, C13, C30, F43, L70, Q19, Q43</p><p>DOI: <a href="https://doi.org/10.32479/ijeep.11491">https://doi.org/10.32479/ijeep.11491</a></p>
format article
author James Tumba Henry
Bassey Enya Ndem
Ofem Lekam Ujong
Chijioke Mercy Ihuoma
author_facet James Tumba Henry
Bassey Enya Ndem
Ofem Lekam Ujong
Chijioke Mercy Ihuoma
author_sort James Tumba Henry
title Electric Power Deficit and Economic Growth in Nigeria: A Sectoral Analysis
title_short Electric Power Deficit and Economic Growth in Nigeria: A Sectoral Analysis
title_full Electric Power Deficit and Economic Growth in Nigeria: A Sectoral Analysis
title_fullStr Electric Power Deficit and Economic Growth in Nigeria: A Sectoral Analysis
title_full_unstemmed Electric Power Deficit and Economic Growth in Nigeria: A Sectoral Analysis
title_sort electric power deficit and economic growth in nigeria: a sectoral analysis
publisher EconJournals
publishDate 2021
url https://doaj.org/article/03d5959c028942cda110b9c2526e8166
work_keys_str_mv AT jamestumbahenry electricpowerdeficitandeconomicgrowthinnigeriaasectoralanalysis
AT basseyenyandem electricpowerdeficitandeconomicgrowthinnigeriaasectoralanalysis
AT ofemlekamujong electricpowerdeficitandeconomicgrowthinnigeriaasectoralanalysis
AT chijiokemercyihuoma electricpowerdeficitandeconomicgrowthinnigeriaasectoralanalysis
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