Impact of electricity consumption on manufacturing output in Nigeria

Impact of electricity consumption on manufacturing output in Nigeria

Author by Dr. Esther Lawal

Journal/Publisher: Salem Journal Of Business And Economy.

Volume/Edition: 7

Language: English

Pages: 11 - 21

Abstract

The study analyzed the impact of electricity consumption on manufacturing sector performance in Nigeria. Annual time series secondary data over a period of 38 years, covering 1981 to 2019 was analysed using Vector Error Correction Model (VECM) and Johansen cointegration technique. The study concluded that, the low level of electricity consumption hampers the growth and development of the Nigerian manufacturing sector. There should be adequate funding of the power sector, security of gas supply, maintenance of existing power supply infrastructures. Alternative sources of energy for electricity production must be prioritized by the Government to reduce reliance on fossil fuel and thermal. Other renewable energy sources such as solar, biomass and wind can be used to generate power for socioeconomic electrification.


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