Impact of Power Generating Capacity on the Nigerian Economy

Abstract

The study focused on the impact of power generation capacity on
the Nigerian economy. The specific objectives was to investigate
the relationship between power generation capacity and
economic growth. Secondary data sourced from Central Bank of
Nigeria was analysed using ordinary least squares (OLS) method.
In the model specified, real gross domestic product is a function
of power generation, technology, and gross capital formation.
The results of the estimation showed that there is a significant
positive relationship between Power Generation Capacity
(PGW), Gross Capital Formation (GCP), Technology utilization
(TECHU). The study therefore recommended that government
must ensure transparency in the overall implementation of its
power sector policy and the attendant reform agenda in order to
enhance growth of the economy in power generation capacity.
Government should also increase its expenditure in the aspect of
technology so as to foster economic growth.