The Impact of Power Supply on the Industrial Development in Nigeria

Abstract

This paper seek to investigate the causal and long run relationship between power supply and industrial development in Nigeria from 1985–2011. To achieve this, the paper employed the Agumented Dickey Fuller (ADF) test of stationeries to co-integration proposed by assumption of Dimitrious and Stephen 2007 in to determine the time series characteristics of variables used in the regression. The paper adopted the approach of Durbin Watson modified unit root test. The ADF results show that there is presence of a false bloated positive outcome–effect of Electricity Installed Capacity (ELIC) against industrial productivity and a combined positive impact as high as 79.08% Adjusted R-square, while at the same time indicating an untreated problem of autocorrelation manifesting in Durbin Watson value of 0.784. These lapses thus necessitated the introduction of first difference of each series. While keeping the above in mind, the final result above shows negative relationship between Electricity installed capacity and industrial productivity in Nigeria to drive industrialization development, the country should fix the electricity supply problem.

Keywords: Power supply, industrialization, development, electricity

Cite this Article

Yakubu L. O., Aremu J. M. The Impact of Power Supply on the Industrial Development in Nigeria. OmniScience: A Multi-disciplinary Journal(OSMJ). 2015; 5(1): 5–11p.