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Impact of Electricity Supply on Economic Growth a Case Study of Bayelsa, Nigeria

Kingdom Mienebimo, Kpou Ebisindo Jolly

Abstract

This research explores how electricity supply influences economic development in Bayelsa State, Nigeria, with a spotlight on industrial productivity, the performance of small and medium-sized enterprises , and job creation. Adopting a descriptive survey approach, data were gathered from 250 participants, including entrepreneurs, public sector workers, and households from selected local government areas. The analysis utilized descriptive statistics such as mean and standard deviation alongside Chi-square tests to examine the link between electricity availability and key economic variables. Results indicate that access to electricity significantly shapes the economic dynamics within the state. Descriptive statistics showed strong agreement among respondents that poor electricity supply leads to reduced industrial output, increased production costs, and limited business expansion. SMEs, in particular, reported high operational costs due to heavy reliance on generators, which significantly reduces profit margins and stifles growth. Employment generation was also found to be adversely affected, as many businesses are unable to expand or sustain jobs in the absence of stable electricity. The study contributes to energy and development discourse by highlighting the localized economic consequences of unreliable electricity supply in a resource-rich but power-deficient region. It recommends improved infrastructure, targeted energy subsidies for SMEs, and the integration of electricity reform into broader economic planning as essential steps toward sustainable growth in Bayelsa State.

Keywords

Electricity supplyEconomic growthIndustrial outputSmall and medium-scale enterprisesEmployment generation.

References

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