Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062

Conference List

The Economics and Finance Letters

June 2019, Volume 6, 2, pp 170-177

Structural Breaks, Electricity Generation and Economic Growth in Nigeria

Iyabo Adeola Olanrele

Iyabo Adeola Olanrele 1

  1. Economics and Business Policy Department, Nigerian Institute of Social and Economic Research (NISER), Nigeria. 1

on Google Scholar
on PubMed

Pages: 170-177

DOI: 10.18488/journal.29.2019.62.170.177

Share :

Article History:

Received: 07 June, 2019
Revised: 15 July, 2019
Accepted: 20 August, 2019
Published: 03 October, 2019


Instability and low electricity generation in Nigeria has continued to raise concerns. The power sector reforms aimed at enhancing increased and stable electricity generation over the decades have not been economic growth oriented. Among other factors, obsolete and poor infrastructural equipment as well as inadequate investment has continued to impede the optimal impact of the power sector. This paper used full sample VAR and structural breaks approach-rolling impulse response(RIR) model-to obtain evidence for changes in the impact of electricity generation on Nigerian economic growth based on quarterly data from 1970 to 2016. Findings revealed that electricity generation does not Granger-cause real GDP growth rate and gross fixed capital formation, while a short-run relationship exist for labour force. No strong dynamic relationship exists between electricity generation and real GDP growth over the lag period. Lastly, result from RIR technique also showed that real GDP growth rate does not respond to impulses from electricity generation over the years, but for weak impact in the early 1980s.
Contribution/ Originality
This study contributes to the existing literature by examining the relationship between electricity production and economic growth in Nigeria using a recent innovative structural break approach (Rolling impulse response). The approach was used to capture the variations in economic growth that arises from structural changes relating to electricity generation overtime.


Electricity generation, Economic growth, Nigeria, Rolling impulse approach.



Akinlo, A.E., 2009. Electricity consumption and economic growth in Nigeria: Evidence fromcointegration and co-feature analysis. Journal of Policy Modeling, 31(5): 681–693.Available at:

Blanchard, O. and J. Gali, 2007. The macroeconomic effects of oil shocks: Why arethe 2000s so different from the 1970s?” NBER Working Paper No. 13368.

Edquist, H. and M. Henrekson, 2006. Technological breakthroughs and productivity growth. Research institute of industrial economics. IFN Working Paper No. 665.

Electricity Installed Capacity, 2018. Nigeria energy profile. Available from

Farzanegan, M.R. and G. Markwardt, 2009. The effects of oil price shocks on the Iranian economy. Energy Economics, 31(1): 134-151.Available at:

International Electricity Agency, 2018. Electricity information. Available from

Iwayemi, A., 2016. No fuel, no power: Towards a sustainable exit strategy from Nigeria’s persistent energy paradoxes. Nigeria Association of Energy Economics  (NAEE) Forum. 4th Edn., Available from:

Iwayemi, A. and B. Fowowe, 2011a. Impact of oil price shocks on selected macroeconomic variables in Nigeria. Energy Policy, 39(2): 603-612.Available at:

Iyke, B.N., 2015. Electricity consumption and economic growth in Nigeria: A revisit of the energy-growth debate, Energy Economics, 51(c): 166-167.

Lee, C.-C. and C.-P. Chang, 2005. Structural breaks, energy consumption, and economic growth revisited: Evidence from Taiwan. Energy Economics, 27(6): 857-872.

Naka, A. and D. Tufte, 1997. Examining impulse response functions in cointegrated systems. Applied Economics, 29(12): 1593-1603.Available at:

National Electric Power Authority (NEPA), 2004. Power reform and power-generation plans in the public and private sectors. Abuja, Nigeria.

Ogagavwodia, J., E. Matthew and B. Ohwofasa, 2014. Power supply and national development, 1980-2012: The Nigeria experience. International Journal of Humanities and Social Science, 4(8): 144-154.

Ogundipe, A.A. and A. Apata, 2013. Electricity consumption and economic growth in Nigeria. Journal of Business Management and Applied Economics, 2(4): 1-14.

Straub, S., 2008. Infrastructure and growth in developing countries: Recent advances and research challenges. World Bank, Policy Research Working Paper No. 4460, Washington D.C.

Turhan, I., E. Hacihasanoglu and U. Soytas, 2012. Oil prices and emerging market exchange rates. Bank of the Republic of Turkey Working Paper, No. 12/01.

World Bank World Development Indicator (WDI), 2018. Electricity generation by fuel. Available from

Yoo, S.-H. and Y. Kim, 2006. Electricity generation and economic growth in Indonesia. Energy, 31(14): 2890-2899. Available at:


Google Scholor ideas Microsoft Academic Search bing Google Scholor


This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


Related Article

( 1 ) Structural Breaks and the Long-Run Stability of Demand for Real Broad Money Function in Nigeria: A Gregory-Hansen Approach
( 2 ) Confirming the Mediation Effect of A Structural Model By Using Bootstrap Approach: A Case Study of Malaysian 8th Grade Students’ Mathematics Achievement
( 3 ) Testing the PPP Using Unit Root Tests with Structural Breaks: Evidence from Politically Unstable Arab Countries
( 4 ) Structural Breaks, Electricity Generation and Economic Growth in Nigeria
( 5 ) Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation
( 6 ) Role of Talent Development on Talent Engagement and Self-Efficacy: A Structural Model
( 9 ) Explaining Electricity Tariffs in Kenya
( 10 ) Strategic Evaluation of Distributed Power Generation Technology: A Sustainable Approach
( 11 ) An Analysis of Purchase Behavior of Generation Y in Kenya
( 13 ) The Mediating Effect of Financial Self-Efficacy on the Financial Literacy-Behavior Relationship: A Case of Generation Y Professionals
( 14 ) Consideration the Relationship Between Information Communications Technology and Economic Growth in Top 10 Economic
( 15 ) Shifting Global Economic Paradigm
( 16 ) How Telecommunication Development Aids Economic Growth: Evidence from Itu Ict Development Index (IDI) Top Five Countries for African Region
( 17 ) The Prospects of Accounting and Economic Systems in the Era of Global Knowledge Economy
( 18 ) Labor and Economic Growth in Zimbabwe
( 19 ) The Impact of Human Capital on Economic Growth: Evidence from Tunisia Using Star and Stecm Models
( 20 ) Exchange Rate Movements, Import And Economic Growth in Nigeria (1986-2010)
( 21 ) Impact of Food Beverage Price Index and Exchange Rate Volatility on Economic Growth
( 22 ) Long-Run Relationships and Causality Tests Between Military Expenditure and Economic Growth in India
( 23 ) Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach
( 24 ) Study of the Relationship between Economic Growth and Inflation: Application to the Countries of the South Side of the Mediterranean: A Panel Data Approach
( 25 ) The Entrepreneurship, Knowledge Spillover and Economic Growth
( 26 ) Corruption’s and Democracy’s Effects on Economic Growth
( 27 ) Relationships between Financial Development and Economic Growth: A New Approach by Inputs
( 28 ) Impact of Microfinance Lending On Economic Growth of Third world Nations: Study of Nigeria
( 29 ) The Role of Information and Communication Technology in Rural Socio-Economic Development in Africa
( 30 ) Dividend Policy Relevancy in Theoretical and Practical Economics
( 31 ) Consideration the Effects of Water Sector Investment on Economic Growth in Iran
( 32 ) Is Brics a Viable Solution for Russia in the Context of the Present Eu’s Economic Sanctions?
( 33 ) Stock Market Performance and Economic Growth: Evidence from Nigeria Employing Vector Error Correction Model Framework
( 34 ) Rural Saving Mobilizations and Economic Development in Akamkpa Local Government Area of Cross River State - Nigeria
( 35 ) Nigerian Politics, Economic Development, and the Role of Human Rights Organisations on Elections
( 36 ) Rural - Urban Balance as a Measure of Socio-Economic Development with Special Reference to Iran
( 37 ) Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013
( 38 ) The Effect of Access and Quality of Education on Economic Development in Botswana
( 39 ) Panel Data Analysis of the Impact of Economic Freedom as Well as Economic Conditions, The Quality of Life, and Public Education Spending on U.S. Undocumented Immigrant Settlement Patterns
( 40 ) Dynamics of Inflation, Economic Growth, Money Supply and Exchange Rate in India: Evidence from Multivariate Analysis
( 42 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 43 ) The Link Between Agricultural Budgetary Allocation and Economic Growth in Nigeria
( 44 ) Financial Deepening, Interest Rate Spread and Economic Growth: New Evidence from Sub-Sahara Africa
( 45 ) China Pakistan Economic Corridor (CPEC): Analysis of Internal and External Challenges
( 46 ) A Case Study of Local Government Implementation of the Ward Based Local Economic Development (LED) Program
( 47 ) Military Regimes and Nigeria’s Economic Development, 1966-1999
( 48 ) An Investigation of the Relationship between Manufacturing Output and Economic Growth : Evidence from Nigerias Data Set
( 49 ) Scenario Economic Impact Analysis of Offshore Fishing Tournaments in Ocean City
( 50 ) Macroeconomic Indicators and Capital Formation Growth in Nigeria: A New Evidence
( 51 ) An Empirical Investigation into the Key Drivers of Economic Performance in the CEMAC Zone: A Panel Corrected Standard Errors Approach
( 52 ) Disaggregated Foreign Capital Inflows and Economic Growth in a Developing Economy: Empirical Evidence from Nigeria
( 53 ) Impact of Telecommunications Market Liberalization on Labor Productivity in Economic Community of West African States
( 54 ) Assessment of Dual Carriageway for Sustainable Socio-Economic Development in Ado Ekiti, Nigeria
( 56 ) Does Agricultural Sector Contribute to the Economic Growth in Case of Republic of Benin?
( 57 ) Uncertainties in Global Economic Policy and Nigerias Export Earnings
( 58 ) Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria
( 59 ) External Debt and Economic Growth: Two-Step System GMM Evidence for Sub-Saharan Africa Countries
( 60 ) Impact of Exchange Rate Fluctuation on Selected Economic Sectors of the Nigerian Economy
( 61 ) The Colonialists & Indigenous Exchange Currency: Tracing the Genesis of Socioeconomic Woes in Postcolonial Nigeria
( 62 ) The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach
( 63 ) Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis
( 64 ) The Impact of Military Spending on Economic Wellbeing in Nigeria
( 65 ) The Relationship between Financial Development, Economic Growth, and Inflation: Evidence from Southeast Asia
( 66 ) German Exports, Economic Growth and Foreign Demand: An Analysis of the Period 2000–2017
( 67 ) Does External Borrowing Affect Economic Growth? A Revisit of the Age-Long Debate for Nigeria
( 68 ) Nexus between Non-Oil Sectoral Contribution and Economic Growth in Nigeria 1981-2018
( 69 ) Management of The CFA Franc: What are the Fundamentals of the Real Exchange Rate in West African Economic and Monetary Union (WAEMU)?
( 70 ) Investigating the Environmental Effects of Economic Growth in African Economies
( 71 ) Analysis of Causal Nexus between Defense Spending and Economic Growth in Nigeria: A Toda-Yamamoto Approach
( 72 ) The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest
( 73 ) The Impact of Economic Growth, Oil Price, and Financial Globalization Uncertainty on Financial Development: Evidence from Selected Leading African Countries
( 74 ) The Effects of Macroeconomic Variables on Bank Default: A Case Study in Brazil
( 75 ) Deficit Financing Asymmetry and Nigerias Economic Growth: A Nonlinear Autoregressive Distributed Lag Approach
( 76 ) Impact of Savings on Economic Growth in Africa
( 77 ) Does Corruption Grease or Sand the Wheels of Economic Growth in Ghana? An ARDL Bounds Test
( 78 ) Fiscal Decentralization and Economic Growth: Assessing Public Policy in Ukraine
( 79 ) Socioeconomic Environment and Obesity on the US West and East Coasts
( 80 ) Human Capital and Economic Growth in Latin America: A Cointegration and Causality Analysis
( 81 ) An Empirical Investigation of the Impact of FDI, Export and Gross Domestic Savings on the Economic Growth in Bangladesh
( 82 ) Exploring the Linkages between Remittances, Economic Growth and Poverty: Empirical Evidence from Pakistan
( 83 ) Human Capital Development and Economic Growth in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach
( 84 ) Contribution of Domestic Direct Investment and Direct Foreign Investment to Economic Growth in Indonesia Era Joko Widodo
( 85 ) Contribution of Ready-Made Garments Industry on the Economic Development of Bangladesh: An Empirical Analysis
( 86 ) The Impact of Covid-19 Pandemic on the Global Economy: Emphasis on Poverty Alleviation and Economic Growth
( 87 ) Impacts of Domestic Savings and Domestic Investment on Economic Growth: An Empirical Study for Pakistan
( 88 ) Financial Development and Economic Growth in Nigeria: New Evidence from a Threshold Autoregressive and Asymmetric Analysis
( 102 ) Government Borrowing Behaviour: Implications for Private Sector Growth in Nigeria
( 105 ) Bancassurance - Growth Guaranteed in India
( 106 ) Development, Preference Change, and Inequality in an Integrated Walrasian-General-Equilibrium and Neoclassical-Growth Theory
( 107 ) The Impact of the Global Financial Crisis on the Debt, Liquidity, Growth, and Volume of Companies in Palestine Stock Exchange
( 109 ) Empirical Evidence on Municipal Tax Policy and Firm Growth
( 115 ) Public Sector Size and GDP Growth Nexus: Panel Data Estimation
( 119 ) Urban Population Growth and Environmental Sustainability in Nigeria
( 122 ) Satisfaction with Applications Fuels the Growth of Mobile Wallet Use in Thailand
( 125 ) Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?
( 130 ) Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia
( 136 ) Export- Led Growth Hypothesis for Ghana: A TVAR & TVECM Analysis
( 149 ) Contemporary Approach to Enhanced Road Transport System in Nigeria Through the Application of It-Based (Online) Bus Ticketing and Payment System
( 150 ) Impact of Labour, Capital and Human Resources in Productivity of Transport Firms in Nigeria
( 151 ) The Impact of Investment Climate Reforms on the Development of Small and Medium Sized Enterprises in Nigeria: A Policy Brief
( 152 ) Gaining Trust After the Financial Crisis in the Nigerian Economy: A Conceptual Framework
( 153 ) An Enquiry into the Contributions of Microfinance Institutions Towards the Development of Small Scale Business in Nigeria
( 155 ) Challenges of Human Rights Abuses in Nigerian Democratic Governance – Which Way Forward ?
( 158 ) Anti-Corruption Crusade in Nigeria: More Words Than Deeds
( 159 ) Social Security; A Public Policy for Good Governance in Nigeria: The Role of Nigerian Legislature
( 160 ) National Urban Development Policy and the Unanswered Development Question of Slum in Nigeria