THE RELATIONSHIP BETWEEN ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH
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Abstract
The study examined the energy consumption and economic growth in Nigeria, using the time frame of thirty (30) years period from 1986-2016. It was established in the study that before the introduction of appropriate energy consumption, energy sector funds were grossly mismanaged, contracts were awarded based on ‘connections’ rather than on merit and high occurrence of corruption in Nigerian power sector.
Since power sector has been seen as an important instrument tool to be used by the government to improve the economy, the appropriate growth from power supply have strengthened all sectors in Nigeria economy and minimize the incidence of economic retardation. The result of the study reviewed that: Energy consumption has significant relationship with economic growth in Nigeria. The study suggested that energy conservation policies could be effectively implemented without having any negative effect on economic growth in Nigeria and energy growth policy should be adopted in such a way that, growth in the energy sector could stimulates economic growth and thus expands employment opportunities in the country.
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