Electricity Consumption, Government Expenditure and Sustainable Development in Nigeria: A Co-integration Approach

Authors

  • Oluwatoyin A. Matthew Covenant University, Ota, Ogun State, Nigeria. http://orcid.org/0000-0003-3876-3479
  • Tamunotonye Miebaka-Ogan Covenant University, Ota, Nigeria
  • Olabisi Popoola
  • Tomike Olawande Covenant University, Ota, Nigeria
  • Romanus Osabohien Covenant University, Ota, Nigeria
  • Ese Urhie
  • Oluwasogo Adediran
  • Toun Ogunbiyi

Abstract

The government incurs both capital and recurrent expenditures so as to bring about the development of the Nigerian economy. Coupled with this is the fact that electricity power plays an important role in ensuring that aggregate output increases and the welfare of the people is affected positively. This study sets out to examine the long run relationship between electricity consumption, government expenditure and sustainable development in Nigeria employing the Johansen co-integration, Vector Error Correction Mechanism (VECM) and Granger causality estimation techniques. Secondary data were obtained from Central Bank of Nigeria Statistical Bulletin, United Nations Conference on Trade and Development (UNCTAD) and World Development Indicators (WDI) from 1980 to 2017. The results obtained from the study showed that government recurrent expenditure, gross fixed capital formation have a positive and significant relationship with GDP per capita in the long run. However, electricity consumption, government capital expenditure and total labour force had a negative but significant effect on GDP per capita in the long run. Hence, this study recommended that the government and relevant agencies should ensure that projects undertaken are profitable and people oriented. Also, strategies to improve electricity supply, government expenditure on capital and labour productivity should be encouraged.

Keywords: Capital and Recurrent Expenditure, Electricity Consumption, Sustainable Development

JEL Classifications: F61, I15, I25, L92

DOI: https://doi.org/10.32479/ijeep.7547

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Author Biographies

Oluwatoyin A. Matthew, Covenant University, Ota, Ogun State, Nigeria.

Department of Economics & Development Studies

Tamunotonye Miebaka-Ogan, Covenant University, Ota, Nigeria

Department of Economics & Development Studies

Tomike Olawande, Covenant University, Ota, Nigeria

Department of Sociology

Romanus Osabohien, Covenant University, Ota, Nigeria

Department of Economics & Development Studies

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Published

2019-06-01

How to Cite

Matthew, O. A., Miebaka-Ogan, T., Popoola, O., Olawande, T., Osabohien, R., Urhie, E., Adediran, O., & Ogunbiyi, T. (2019). Electricity Consumption, Government Expenditure and Sustainable Development in Nigeria: A Co-integration Approach. International Journal of Energy Economics and Policy, 9(4), 74–80. Retrieved from https://econjournals.com/index.php/ijeep/article/view/7547

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