ABSTRACT

The studyfocused on the impact ofelectricity consumption and economic growth in Nigeria. The objective ofthe study were to investigate the impact ofelectricity consumption on economic growth in Nigeria. To ascertain the long run relationship between electricity consumption and economic growth in Nigeria. Ordinary least square regression technique was employed in testing hypotheses. Thus, it was found that there exist a long run relationship between electricity consumption and economic growth ofNigeria. Also, t- test reveled; Gross capital stock has a positive and insignificant impact on economic growth in Nigeria. Employment level has a positive and insignificant impact on economic growth in Nigeria. Electricity consumption has a positive and significant impact on economic growth in Nigeria. Base on the findings the ‘study recommended that; Employment and capital as the most important factors in output growth, ■ implies that in order to sustain high economic growth in the long-run, the country needs to increase the efficiency ofits workforce and expand its saving capacity to generate more capital. To enhance and sustain economic growth in Nigeria in the long run, appropriate policies must be in place to meet the growing electricity consumption. Therefore, the ongoing electric sectorpower reforms in the country should be pursued vigorously to ensure stable and sustainable electricity supply. Also, both the private sector andgovernment at all levels should increase their investments.in electricity infrastructure. The findings on the long-run relationship indicate that a sufficiently large supply ofelectricity can ensure that a higher level ofeconomic growth is achieved.