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Effect of Inadequate Electrification on Nigeria’s Economic Development and Environmental Sustainability

Author

Listed:
  • Mustapha Mukhtar

    (School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China)

  • Sandra Obiora

    (School of Economics and Management, University of Electronic Science and Technology of China, Chengdu 610054, China)

  • Nasser Yimen

    (National Advanced School of Engineering, University of Yaounde I, Yaounde 812, Cameroon)

  • Zhang Quixin

    (School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China)

  • Olusola Bamisile

    (School of Mechanical and Electrical Engineering, University of Electronic Science and Technology of China, Chengdu 610054, China)

  • Pauline Jidele

    (Faculty of Science, Augustine University, Ilara-Epe, PMB 1010, Lagos State 106101, Nigeria)

  • Young I. Irivboje

    (College of Animal Science and Livestock Production, Federal University of Agriculture, Abeokuta 112251, Nigeria)

Abstract

In this study, the impact of the electricity crisis on the economic growth of Nigeria is presented. Unlike other existing studies that checked the effect of electricity consumption on economic development or environmental sustainability for different countries, the present study will further present a techno-economic analysis of a proffered solution to the imminent electricity crisis. Time-series regression models are used to analyze the effect of electricity consumption on economic development and environmental sustainability while RETScreen professional software is used to perform a techno-economic analysis and determine the feasibility of a 500-kW microgrid Solar Photovoltaic (PV) system integrated for electricity generation. From the analysis results, a strong positive correlation effect is evident between electricity consumption and GNI, as well as a strong negative correlation between electricity consumption and gross domestic savings. Also, strong positive correlation effects are evident in the case of carbon emissions by buildings, by the power industry, and by other combustion industries on electricity consumption in Nigeria. Considering the net present value, internal rate of return and payback periods, the use of solar PV systems for electricity generation is feasible in the 12 different locations in Nigeria studied in this research. The most feasible area for solar PV installation is the northern part of Nigeria as Gombe and Kaduna recorded a simple PBP and an equity PBP are 6.3 years and 7.4 years respectively.

Suggested Citation

  • Mustapha Mukhtar & Sandra Obiora & Nasser Yimen & Zhang Quixin & Olusola Bamisile & Pauline Jidele & Young I. Irivboje, 2021. "Effect of Inadequate Electrification on Nigeria’s Economic Development and Environmental Sustainability," Sustainability, MDPI, vol. 13(4), pages 1-24, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:2229-:d:501940
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    References listed on IDEAS

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    3. Aisha Sa’ad & Aimé C. Nyoungue & Zied Hajej, 2021. "Improved Preventive Maintenance Scheduling for a Photovoltaic Plant under Environmental Constraints," Sustainability, MDPI, vol. 13(18), pages 1-22, September.
    4. Tasnim Ahmed & Mohammad Mazibar Rahman & Mahbuba Aktar & Anupam Gupta & Mohammad Zoynul Abedin, 2023. "The impact of economic development on environmental sustainability: evidence from the Asian region," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3523-3553, April.
    5. Ekpo, C.G. & Orji, N.O. & Is’haq, A.B., 2022. "Effect of Erratic Electric Power Supply on The Environment," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(11), pages 523-530, November.
    6. Sandra Chukwudumebi Obiora & Muhammad Abid & Olusola Bamisile & Juliana Hj Zaini, 2023. "Is Carbon Neutrality Attainable with Financial Sector Expansion in Various Economies? An Intrinsic Analysis of Economic Activity on CO 2 Emissions," Sustainability, MDPI, vol. 15(9), pages 1-27, April.

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