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

Author

Listed:
  • Oluwatoyin A. Matthew

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

  • Tamunotonye Miebaka-Ogan

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

  • Olabisi Popoola

    (Department of Economics, Landmark University, Omu-Aran, Nigeria)

  • Tomike Olawande

    (Department of Sociology, Covenant University, Ota, Nigeria.)

  • Romanus Osabohien

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

  • Ese Urhie

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

  • Oluwasogo Adediran

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

  • Toun Ogunbiyi

    (Department of Economics and Development Studies, Covenant University, Ota, Nigeria,)

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.

Suggested Citation

  • Oluwatoyin A. Matthew & Tamunotonye Miebaka-Ogan & Olabisi Popoola & Tomike Olawande & Romanus Osabohien & Ese Urhie & Oluwasogo Adediran & Toun Ogunbiyi, 2019. "Electricity Consumption, Government Expenditure and Sustainable Development in Nigeria: A Co-integration Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 74-80.
    • Handle: RePEc:eco:journ2:2019-04-9
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    References listed on IDEAS

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    1. Philip O. Alege & Evans S. Osabuohien, 2015. "Trade-Exchange Rate Nexus in Sub-Saharan African Countries," Foreign Trade Review, , vol. 50(3), pages 151-167, August.
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    Cited by:

    1. Franklin Famous Asemota & Felicia Omowunmi Olokoyo, 2022. "Renewable Energy Financing and Sustainable Industrial Development in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 563-567, July.
    2. Oluwarotimi Ayokunnu Owolabi & Asa-Ruth Oboku Oku & Abidemi Alejo & Toun Ogunbiyi & Jeremiah Ifeanyi Ubah, 2021. "Access to Electricity, Information and Communications Technology (ICT), and Financial Development: Evidence From West Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 247-259.
    3. Alfonso Marino & Paolo Pariso & Michele Picariello, 2023. "Exploring the Economic Recovery of Italy’s Regions Post-COVID-19: A focus on Energy, Services, ICT Opportunities, and the Digital Divide," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 271-280, September.
    4. Oluwafadekemi S. Areo & Obindah Gershon & Evans Osabuohien, 2020. "Improved Public Services and Tax Compliance of Small and Medium Scale Enterprises in Nigeria: A Generalised Ordered Logistic Regression," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(7), pages 833-860, July.
    5. Olufunmilayo T. Afolayan & Henry Okodua & Hassan Oaikhenan & Oluwatoyin Matthew, 2020. "Carbon Emissions, Human Capital Investment and Economic Development in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 427-437.
    6. Oluwatoyin Matthew & Anthonia Adeniji & Romanus Osabohien & Tomike Olawande & Tolulope Atolagbe, 2020. "Gender Inequality, Maternal Mortality and Inclusive Growth in Nigeria," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 763-780, February.
    7. Amin, Sakib & Jamasb, Tooraj & Nepal, Rabindra, 2021. "Regulatory reform and the relative efficacy of government versus private investment on energy consumption in South Asia," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 421-433.
    8. Romanus Osabohien & Evans S. Osabuohien & Precious Ohalete, 2019. "Agricultural Sector Performance, Institutional Framework and Food Security in Nigeria," Working Papers of the African Governance and Development Institute. 19/083, African Governance and Development Institute..
    9. Oluwasogo S. Adediran & Ibiene Benibo & Doris Akinpelumi, 2021. "Biomass Energy Consumption and Economic Growth: An Assessment of the Relevance of Sustainable Development Goal 7 in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 43-49.
    10. Ademola Onabote & Ayobami Jolaade & Romanus Osabohien & Oghenetega Otobo & Christian Ede & Victoria Okafor, 2021. "Energy Sustainability, Energy Financing and Economic Growth in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 433-439.
    11. Romanus Osabohien & Evans Osabuohien & Precious Ohalete, 2019. "Agricultural Sector Performance, Institutional Framework and Food Security in Nigeria," Research Africa Network Working Papers 19/083, Research Africa Network (RAN).
    12. Bosede Comfort Olopade & Henry Okodua & Muyiwa Oladosun & Oluwatoyin Matthew & Ese Urhie & Romanus Osabohien & Oluwasogo Adediran & Olubunmi H. Johnson, 2020. "Economic Growth, Energy Consumption and Human Capital Formation: Implication for Knowledge-based Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 37-43.

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    More about this item

    Keywords

    Capital and Recurrent Expenditure; Electricity Consumption; Sustainable Development;
    All these keywords.

    JEL classification:

    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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