Impact of Electricity Loss on Gross Domestic Product in Nigeria

David Adebisi Samuel
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David Adebisi Samuel: Department of Economics, Trinity University, Lagos, Nigeria

International Journal of Research and Innovation in Social Science, 2023, vol. 7, issue 1, 1556-1566

Abstract: This study investigated the impact of electricity loss both from the transmission and distribution channels that constituted the technical and non-technical losses of electricity on Gross Domestic Product in Nigeria between 1981 and 2020. The variables used in the work included electricity loss, electricity demand and electricity supplied from hydropower. Vector Autoregressive model was employed to estimate the parameters and it was revealed that electricity loss negatively impacted Gross Domestic Product in Nigeria. It was also discovered that electricity demand positively impacts GDP but electricity supply negatively impacts GDP in the country. It was however confirmed that there is no causal relationship between electricity loss, electricity demand and electricity supply and GDP in the country. It was therefore recommended that a deliberate policy that will stimulate investment in the transmission and distribution infrastructure be designed and implemented to reduce electricity losses to the barest minimum in the country.

Date: 2023
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