Electricity Supply and Business Performance in a Nigerian Private University

Racheal Funmi Adebayo, Damilola Felix Eluyela, Abayomi Victor-Adisa, Adeniyi Olayanju, Olabisi Popoola, Rotdelmwa Maimako, Olayiwola Olalekan, Abiola John Asaleye, Olatunde Dahunsi


There has been a consistent argument in the literature as regards the impact of electricity consumption on economic growth with most studies focused on developed economies. However, little is known on impact of electricity consumption on business performance in a university system. This study examines the short-run and long-run impact of electricity supply on business performance in a Nigerian private university. The study adopted Engle and Granger approach to co-integration. The result reveals that in the long run, a negative relationship exist between electricity supply and turnover. However, cost of sales and wages have positive relationship with turnover. In the short-run, electricity supply has negative relationship with business performance. In addition, the cost of sales is not statistically significance with turnover. The findings of the study are in line with the principle of labour marginal productivity both in the short and long-run. Therefore, the study recommended need to consider alternative source of power supply most especially in the long-run in order to maximize the aggregate benefit on the business performance.

Keywords: Electricity Supply; Education; Business Performance

JEL Classifications: Q4 H51; O4

DOI: https://doi.org/10.32479/ijeep.8555

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