Electricity Generation and Economic Growth in Nigeria: Is there any Link?
This study examined the relationship between electricity generation and economic growth in Nigeria during the period 1986-2019 and employed the co-integration test, autoregressive distributed lag, Granger causality test techniques. The co-integration test result revealed a long-run relationship between explanatory variables. The study found that electricity plays an important role in propelling economic growth in Nigeria. Likewise, the result from the causality test indicates that, a bi-directional causal relationship between total electricity consumption and economic growth in the long run exist. The study recommends that policymakers need to improve the power sector to harness the potential of electricity in growing the economy.
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