Electricity Consumption and Manufacturing Sector Performance: Evidence from Nigeria

Abiola John Asaleye, Adedoyin Isola Lawal, Henry Egbezien Inegbedion, Adenike Omowumi Oladipo, Akinyomade O. Owolabi, Olayemi Moses Samuel and Chisaa Onyekachi Igbolekwu
Additional contact information
Abiola John Asaleye: Department of Economics, Landmark University, Omu Aran, Nigeria,
Adedoyin Isola Lawal: Landmark University SDG17 Research Group (Partnerships to achieve Goal)
Henry Egbezien Inegbedion: Landmark University SDG 8 Research Group (Decent Work and Economic Growth),
Adenike Omowumi Oladipo: Department of Economics, Landmark University, Omu Aran, Nigeria,
Akinyomade O. Owolabi: Landmark University SDG 3 Research Group (Good Health and Well-being),
Olayemi Moses Samuel: Department of Accounting and Financial Services, Landmark University, Omu Aran, Nigeria.
Chisaa Onyekachi Igbolekwu: Department of Sociology, Landmark University, Nigeria.

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 4, 195-201

Abstract: Adequate supply of energy is important for sustainable growth in an economy. The rate of the growth of the Nigeria s electricity development is very slow and not effective compare to other emerging economies; this on the other hands has discouraged production, most especially in the manufacturing sector. In light of this, the study investigates the long-run impact of electricity consumption on manufacturing sector performance proxy by output, employment and capital using Canonical Cointegrating Regression. Evidence from the result in the output equation shows that electricity consumption and credit to manufacturing sector have a negative relationship with output. In the employment equation, consumption in electricity and interest rate have negative effects on employment. In the capital equation, electricity consumption is not statistically significant. In conclusion, effects of electricity consumption as input in the manufacturing sector have not improved the performance in the sector. To improve the situation, the study recommends among others the need to create a framework to promote energy efficiency by maximizing output from the power sector and minimize wastage.

Keywords: Electricity consumption; Employment; Output; Capital (search for similar items in EconPapers)
JEL-codes: G1 J2 O1 Q4 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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