IMPACT OF PETROLEUM ELECTRICITY AND HYDROELECTRIC AND CONSUMPTION ON ECONOMIC GROWTH IN NIGERIA

Abstract

The study examined the impact of hydroelectric and petroleum electricity consumption on economic growth in Nigeria. The research design adopted for the study was ex-post-facto. The data used for the study were drawn from secondary sources. The sources of data were from World Bank statistical database and CBN Statistical Bulletin (2020) for a period of between 1990 and 2019. Based on the research objectives and unit root test of the study, the Autoregressive Distributed Lagged (ARDL) and the Error Correction Model (ECM) were used to determine the relationship between hydroelectric and petroleum electricity consumption variables and economic growth indicators in Nigeria and the impact of hydroelectric and petroleum electricity consumption on economic growth in Nigeria. The Error Correction Model (ECM) of the study and after examining the long-run impact of the independent variables in the model of the impact of hydroelectric and petroleum electricity consumption on economic growth in Nigeria. The result shows that the ECM parameters were negative (-) and significant which are given -0.546. This means that 55 percent disequilibrium in the previous period is being corrected to restore equilibrium in the current period in the respective models. The ARDL long-run results on the impact of hydroelectric and petroleum electricity consumption on economic growth in Nigeria revealed that hydroelectric and Petroleum Electricity Consumption have positive and significant impact on real gross domestic product in Nigeria. Therefore, the study recommended that the government should increase the hydroelectric and petroleum electricity consumption in Nigeria by reducing the unit price of the petroleum electricity consumption in Nigeria in other to increase the household and industrial usage for increase economic activities through the household and industrialisation in Nigeria through the firms and young industries in Nigeria which in turn increase the sustainable economic growth in Nigeria.