Impact of Electricity Consumption on Manufacturing Output in Nigeria From 1980 – 2021

Abstract The study examine the impact of electricity consumption on manufacturing output in Nigeria of 1980 tо 2021. Different diagnostic test was carried out which include descriptive statistics, correlation, unit root test and Autoregressive Distributed Lag. Descriptive statistics was used to examine if the explanatory variables and the dependent variable exhibit time varying volatility and leptokurtosis characteristics. The АRDL bоunds tеstіng рrосеdurе revealed that in the long-run, labour, capital and electricity consumption are the only variables that determine manufacturing output in Nigeria but inflation and interest rate has negative insignificant effect on manufacturing output in Nigeria. Also in the short-run, the variables that determine manufacturing output are electricity consumption, labour, gross fixed capital formation and electricity production but electricity production has a negative significant effect on manufacturing output in Nigeria. The study therefore recommend that Government privatization policy of the electricity sub-sector should be highly monitored to provide enough electricity generation and consumption to encourage mass employment of a skilled and unskilled labour in the economy.