Socio-Economic Infrastructure and Standard of Living in Nigeria

Abstract

This study investigated the effect of socio-economic infrastructure on the standard of living in Nigeria for the period 1981–2021. The study used per capita income as a proxy for standard of living, while investments in health, education, telecommunications, and electric power supply were used as infrastructure. The exchange rate entered the model as a control variable. Annual time series data were obtained from secondary sources including the CBN annual statistical bulletin, and World Bank development indicators. The Eview10 Statistical Software was employed to analyze the data empirically. Due to the stationarity condition of the time series data, the study adopted the autoregressive distributed lag (ARDL) model to ascertain its objectives. The study revealed that, in the short run, the coefficient of electric power supply has a positive effect on standard of living and is significant, while in the long run, the coefficient of telecommunication infrastructure has a positive influence on standard of living and is significant. The study concludes that the place of power supply and communication cannot be undermined as Nigeria plans for sustainable economic growth and development. Therefore, it was recommended that there be a deliberate attempt to improve the quality of health care and education. Secondly, the federal government should see the provision of electric power and the reduction in airtime and internet data as the main drivers of the standard of living in Nigeria.