Abstract
The poverty situation in the rural areas of the country deserves greater attention; the available statistics from the NBS reveal that the majority of the poor are located in the rural areas. It is really impossible to envision industrialization and societal well-being or high standard of living without adequate and reliable electricity supply. Sustainable electricity supply will aid the artisans, traders, farmers with storage facilities, reduce the rural-urban immigration, improve the standard of living in the rural areas, and encourage rural industrialization and capital formation. This study investigates the impact of sustainable electricity supply on poverty reduction in Nigeria. A time series data from 1981 to 2018 was analysed for this study. Based on the outcome of this study, it could be seen clearly that while electricity generation play a significantly role reducing poverty in the country, electricity consumption does not guarantee poverty reduction. Also, apart from the fact that poverty level in the past period is found to have a direct and statistically significant effect on the poverty rate in the current period, it was also revealed that lower unemployment rate does not really translate into reduction in the poverty level in Nigeria. The study therefore recommend that electricity generation should be given more attention and while trying to address the menace of unemployment in the country, underemployment and labour exploitation must also be tackled headlong.
Highlights
The demand for electricity has been growing rapidly with the growth of economy, changes in demographic structure, rising in Urbanization and Socio-economic growth
The findings suggested that increasing energy consumption leads to a decline in poverty level
This outcome satisfies the condition for the application of autoregressive distributed lag (ARDL) approach of cointegration to analyze the long-run impact of sustainable electricity supply on poverty reduction in Nigeria
Summary
The demand for electricity has been growing rapidly with the growth of economy, changes in demographic structure, rising in Urbanization and Socio-economic growth. The rural areas were worse off than the urban They have been largely underserved in terms of access to social and economic infrastructure and service.Another reason for this study is the failure of the trickledown effect theory of growth in Nigeria. Absence of electricity in the rural areas either for agricultural products storage, agro-allied industries development and especially for the welfare status of the young farmers has made them abandoned their farms to the cities where they can enjoy these infrastructures It has affected her industrialization drives as most productive multinational companies in textiles, breweries, cosmetics; drugs have relocated to other countries where they enjoy sustainable electricity supply thereby increasing the unemployment rate and the poverty rates respectively. The role of the rural electrification agency is to ensure that more than 50% of the population that live in the rural areas will have access to electricity
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