Impact of electricity supply on unemployment in Nigeria (1986-2020)

Abstract

The role of power in driving the socio-economic progress of any economy cannot be overemphasised. It is a vital tool for enhancing productivity and by extension unemployment reduction. This study examined the impact of electricity supply on
unemployment in Nigeria. It focused on how the epileptic power situation inhibits industrialization and at the same time fuels unemployment in the country. To this end, annual time series data were collected for a period of 36 years from 1986-2020; and were analysed using the Ordinary Least Squares (OLS) technique. Findings from the study revealed a strong positive linear correlation between unemployment reduction and electricity supply, while it established a negative correlation between unemployment reduction and government policy. This suggest that reduction in unemployment is a function of both adequate and reliable power supply particularly to the industrial sector of the country. It therefore, recommends that the government invest more in the power sector of the country through improved budgetary allocation.