National Development and Unemployment Reduction in the Power and Energy Sector: 2050 Nigeria population myth in Focus

Abstract

This paper examined the relationship between electricity transmission and distribution, Gross Domestic Product and National Development in Nigeria. Also, population access to electricity consumption against the background can be on the unemployment reduction in Nigeria using co-integration technique of estimation, descriptive statistics for the period covering 1990-2014. The study used the electricity transmission and distribution and consumption data readily available from World Development Index as against that provided by the Central Bank of Nigeria Statistical Bulletin, since the latter exhibited some form of inconsistencies from time to time. A unit root testing was conducted to ascertain the stationery status of the data series; as theories has proofed the non-stationary of most economic data in level state. The series were found to contain unit root, hereby necessitating the incorporation of the differencing mechanism at first-order integration. The study found the existence of a unique co-integrating relationship among the variables in the model, as well the VECM estimates indicated a possibility of a long run convergence with high speed of error correction. The indicator of electricity transmission, distribution and consumption was found to exert a very significant impact on growth and employment creation. In line with the obtained result, a bi-directional causal relationship between electricity transmission, distribution, consumption and economic growth was found to exist. The inelastic impact of electricity transmission, distribution, consumption on growth, as obtained in the analysis; therefore, calls for the need to strengthen the effectiveness of energy generating agencies by ensuring periodic replacement of worn-out equipment and necessary tools in order to drastically reduce power losses as well as seek alternative sources of power considering comparative advantage towards national development.