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Electricity Consumption and Manufacturing Sector Performance: Evidence from Nigeria

Author

Listed:
  • 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.)

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.

Suggested Citation

  • Abiola John Asaleye & Adedoyin Isola Lawal & Henry Egbezien Inegbedion & Adenike Omowumi Oladipo & Akinyomade O. Owolabi & Olayemi Moses Samuel & Chisaa Onyekachi Igbolekwu, 2021. "Electricity Consumption and Manufacturing Sector Performance: Evidence from Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 195-201.
    • Handle: RePEc:eco:journ2:2021-04-24
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    References listed on IDEAS

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    1. Mohtar Rasyid & Anita Kristina, 2021. "Estimation of Demand System for Household Energy Consumption: Empirical Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 289-295.

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    More about this item

    Keywords

    Electricity consumption; Employment; Output; Capital;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • G1 - Financial Economics - - General Financial Markets

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