Impact of Energy Supply on Economic Growth in Nigeria

Publication Information

Journal Title: International Journal of Research and Innovation in Social Science (IJRISS)
Author(s): Samuel David Adebisi, Raymond Osi Alenoghena & Ayobola Olufolake Charles
Published On: 17/03/2023
Volume: 7
Issue: 2
First Page: 959
Last Page: 969
ISSN: 2454-6186

Cite this Article

Samuel David Adebisi, Raymond Osi Alenoghena & Ayobola Olufolake Charles, Impact of Energy Supply on Economic Growth in Nigeria, Volume 7 Issue 2, International Journal of Research and Innovation in Social Science (IJRISS), 959-969, Published on 17/03/2023, Available at https://rsisinternational.org/journals/ijriss/articles/special-autonomy-policy-on-regional-revenue-and-expenditure-budget-sources-in-west-papua-province-in-the-framework-of-supporting-the-defense-economy/

Abstract

Energy supply is an essential sector that can positively impact the other productive sectors of a developing economy to rapidly spur the growth process. This study investigated the impact of energy supply on economic growth in Nigeria between 1971 and 2020. The objective is to examine the extent to which energy supply has positively impacted the productive sectors of the economy to spur the growth process. The study utilized the Autoregressive Distributed Lag (ARDL) model with Bounds Testing for cointegration approach for analysis. The results of the error correction Model showed that there was a long-run relationship between the electricity supplied through hydropower, oil and gas and economic growth, and the speed of adjustment of equilibrium in economic growth, in the long run, was 49.9 per cent per annum. However, the results also showed that none of the independent variables had a significant short-run link with economic growth. Therefore, the study recommends that government should design policies and programmes to enhance hydroelectricity production and electricity from oil and gas to increase firms’ productivity and economic growth in Nigeria.

JEL Classification: Q43, O44, Q48

Key Words: Energy supply, Electricity supply, Economic Growth, Hydropower, Oil, Gas