Keywords
electricity consumption
Capacity utilization
Exchange Rate
Abstract
Electricity demand in Nigeria by the industrial sector has continued to increase while its supply has remained on a decline over the years. The shortages of electricity supply formed the major background for the energy crisis in Nigeria. Therefore, this paper examined the effects of electricity consumption on industrial performance in Nigeria. Using time series data from the Central Bank of Nigeria Annual Report, Statistical Bulletin, Publications of the International Monetary Fund and the National Bureau of Statistics over the years 1985 to 2023. The article used Ordinary Least Squares (OLS) Methods. The findings revealed that a unit rise in industrial electricity consumption enhances industrial performance. The paper stresses that irregular electricity supply weakens industrial performance in Nigeria. Therefore, the paper stresses the need for a comprehensive energy mix to complement the existing energy sources for the development of the industrial sector performance in Nigeria.
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