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Impact of Electricity Loss on Gross Domestic Product in Nigeria

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  • David Adebisi Samuel

    (Department of Economics, Trinity University, Lagos, Nigeria)

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.

Suggested Citation

  • David Adebisi Samuel, 2023. "Impact of Electricity Loss on Gross Domestic Product in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(1), pages 1556-1566, January.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:1:p:1556-1566
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    References listed on IDEAS

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    3. Charles I. Jones, 2011. "Intermediate Goods and Weak Links in the Theory of Economic Development," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(2), pages 1-28, April.
    4. Costa-Campi, Maria Teresa & Daví-Arderius, Daniel & Trujillo-Baute, Elisa, 2018. "The economic impact of electricity losses," Energy Economics, Elsevier, vol. 75(C), pages 309-322.
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