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Electricity utilisation and firm efficiency in Nigeria: evidence from data envelopment analysis

Author

Listed:
  • Ambrose Nnaemeka Omeje
  • Augustine Jideofor Mba
  • Michael Okike Ugwu

Abstract

Electricity consumption is a major factor that influence economic activities of firms. Epileptic electricity supply can reduce the ease of doing business for firms by raising production costs if they switch to alternative electricity supply. This study utilised Nigeria Enterprise Survey (2014) data and data envelopment analysis to find out if utilisation of electricity supply makes firms in Nigeria more efficient compared to when they utilise alternative electricity. It was found that electricity utilisation does not encourage firms in Nigeria to increase their efficiency levels under CRS due to the fact that there exist epileptic/erratic national grid electricity supply accompanied with low voltage whenever the supply is available. The study recommends that Nigerian government and its various agencies in power/electricity sector should strive more to provide constant electricity supply to the people and the firms, to encourage more economic productions that would spur economic growth and development of the country.

Suggested Citation

  • Ambrose Nnaemeka Omeje & Augustine Jideofor Mba & Michael Okike Ugwu, 2022. "Electricity utilisation and firm efficiency in Nigeria: evidence from data envelopment analysis," International Journal of Critical Infrastructures, Inderscience Enterprises Ltd, vol. 18(3), pages 240-266.
    • Handle: RePEc:ids:ijcist:v:18:y:2022:i:3:p:240-266
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