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Electricity Consumption and Quality of Life in Nigeria: The Moderating Roles of Agricultural and Industrial Sector Performance

Ajufo Ikechukwu Henry, Ph.D, Anne C. Maduka, Ph.D, Chibuike R. Oguanobi, Ph.D, Ugwunna Ogochukwu Theresa, Ph.D

Abstract

Quality of life in Nigeria is one of the key developmental challenges in the country despite numerous policy interventions that have been undertaken to enhance the economic and social welfare in Nigeria. Although the consumption of electricity is widely known as one of the key drivers of productivity, income generation, and the creation of employment opportunities, its effect on the overall quality of life is limited by the poor infrastructural facilities and inefficiencies within the various sectors. This paper thus analyzes the interactions between the use of electricity and the quality of life in Nigeria with specific references to the moderating effects of the performance of agricultural and industrial sectors. The model used to examine both short-run and long-run relationships of the variables was the Autoregressive Distributed Lag model. Per capita income, employment, and environmental quality (CO2 emissions) were used as proxies of quality of life, whereas the main explanatory variable was electricity consumption (kWh per capita). Moderating variables were agricultural value added and industrial value added, and a control variable was inflation. The empirical findings showed that electricity consumption is a significant factor in improving per capita income and employment in both short and long term, but it has a P-ISSN 2695-186X negative impact on the environment quality. The performance of agricultural and industrial sector also has a positive effect on income and employment and enhances the effect of electricity consumption on these welfare indicators. The findings however indicate that as the economic activity increases due to the use of electricity, there is a degradation of the environment. The research findings are conclusive that electricity use is an important factor that determines the quality of life in Nigeria, especially when the country is backed up by strong agricultural and industrial sectors. It suggests that more infrastructure should be invested in the electricity infrastructure, it suggests that there should be increased productivity in the agricultural and industrial industries, and it suggests that cleaner and more sustainable energy sources should be adopted in order to balance the economic growth and environmental sustainability.

Keywords

Electricity consumptionquality of lifeagricultural sector performanceindustrial sector performance.

References

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