Impact of the Power Sector on the Economic Growth of Nigeria (1980-2020)

Abstract

This study examined the impact of power sector on the Nigerian economy over a period of 1980 to 2020. The study used time series data collected from central bank of Nigeria statistical Bulletin 2019 edition. The study employed unit root, Granger causality, co-integration test, and Error correction Model technique. Findings revealed that Government expenditure and Electricity supply both have positive impact on the economy while Human capital formation has negative impact on the economy. However, both human capital formation and Electricity supply had significant relationship with the economy whereas Government expenditure has negative relationship with the economy. The study recommends that the Nigerian Bulk Electricity Trading Company (NBET) should be streamlined in such a way that there should be sustainability in the power industry by meeting its obligations to act as a bulk-buyer and manage counter party risks in the power sector.