Effect of Inadequate Electrification on Nigeria’s Economic Development and Environmental Sustainability

Mustapha Mukhtar, Sandra Obiora, Nasser Yimen, Zhang Quixin, Olusola Bamisile, Pauline Jidele and Young I. Irivboje
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Mustapha Mukhtar: School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China
Sandra Obiora: School of Economics and Management, University of Electronic Science and Technology of China, Chengdu 610054, China
Nasser Yimen: National Advanced School of Engineering, University of Yaounde I, Yaounde 812, Cameroon
Zhang Quixin: School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China
Olusola Bamisile: School of Mechanical and Electrical Engineering, University of Electronic Science and Technology of China, Chengdu 610054, China
Pauline Jidele: Faculty of Science, Augustine University, Ilara-Epe, PMB 1010, Lagos State 106101, Nigeria
Young I. Irivboje: College of Animal Science and Livestock Production, Federal University of Agriculture, Abeokuta 112251, Nigeria

Sustainability, 2021, vol. 13, issue 4, 1-24

Abstract: In this study, the impact of the electricity crisis on the economic growth of Nigeria is presented. Unlike other existing studies that checked the effect of electricity consumption on economic development or environmental sustainability for different countries, the present study will further present a techno-economic analysis of a proffered solution to the imminent electricity crisis. Time-series regression models are used to analyze the effect of electricity consumption on economic development and environmental sustainability while RETScreen professional software is used to perform a techno-economic analysis and determine the feasibility of a 500-kW microgrid Solar Photovoltaic (PV) system integrated for electricity generation. From the analysis results, a strong positive correlation effect is evident between electricity consumption and GNI, as well as a strong negative correlation between electricity consumption and gross domestic savings. Also, strong positive correlation effects are evident in the case of carbon emissions by buildings, by the power industry, and by other combustion industries on electricity consumption in Nigeria. Considering the net present value, internal rate of return and payback periods, the use of solar PV systems for electricity generation is feasible in the 12 different locations in Nigeria studied in this research. The most feasible area for solar PV installation is the northern part of Nigeria as Gombe and Kaduna recorded a simple PBP and an equity PBP are 6.3 years and 7.4 years respectively.

Keywords: economic development; electricity; environmental sustainability; Nigeria; solar PV (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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