ABSTRACT
Technological advancements in power generation and distribution are widely believed to
positively influence economic development, as suggested by economic theories. This
research aims to determine the extent to which the availability of electricity impacts the
Real Gross Domestic Product per capita Growth Rate (RGDPGR). To this end, data from
the World Bank and Central Bank of Nigeria (CBN) from 1980 to 2021 was utilized. The
study examines whether Gross Fixed Capital Formation (GFCF), Population (POP),
Access to Electricity Infrastructure (ELEC), and Investment in Industrial Production
(INDSTR) have a significant positive effect on RGDPGR, while Inflation Rate (INF) has a
significant negative effect. A model was developed and analyzed using Descriptive
(Summary) Statistics, Ordinary Least Squares (OLS) Method, Augmented Dickey – Fuller
Unit Root Test, Co-Integration Test, and Vector Error Correction Method (VECM). The
results demonstrate that GFCF, POP, ELEC, and INDSTR positively and significantly
impact RGDPGR, whereas INF has a negative and significant effect. The study concludes
that significant efforts are required to enhance the capacity of the electricity generation
system to maximize its positive impact on economic growth and development. Prudent
financial management is crucial for developing the energy sector, and continuous
monitoring of the power sector's efficiency (particularly PHCN) is essential. The
research suggests exploring alternative energy sources such as solar, biomass, and wind
energy to supplement existing power generation capabilities. KEYWORDS: Real Gross
Domestic Product per capita Growth Rate, Gross Fixed Capital Formation, Population,
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Access to Electricity, Investment in Industrial Production, Inflation Rate, Financial
Prudence, Solar Energy, Biomass, Wind Energy, Power/Energy Supply, Co-Integration
Test, Vector Error Correction Method, Ordinary Least Squares Method, Descriptive
Statistics.
