ABSTRACT
Advances and improvement in the efficiency and effectiveness of power supply is acclaimed to boost the economic growth rate of the economy, drawing from theories of the latter. This study attempts to find out the level of effect that power supply has on the Real GDP per capita growth rate(RGDPGR). In this background, data was obtained from World bank and Central Bank of Nigeria (CBN) spanning from 1980 to 2021. The study attempts to test the hypothesis if there is a significant positive effect of Gross fixed capital formation (GFCF), Population (POP), Access to electricity infrastructure (ELEC), Investment in industrial production (INDSTR) on RGDPGR and if there is a significant negative effect of Inflation rate (INF) on RGDPGR. A model was specified or developed and is analyzed by the use of 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 obtained revealed that the variables Gross fixed capital formation (GFCF), Population (POP), Access to electricity infrastructure (ELEC), Investment in industrial production (INDSTR) have positive significant impact on Real GDP per capita growth rate (RGDPGR) while Inflation rate (INF) has a negative significant effect on Real GDP per capita growth rate (RGDPGR). The study concluded that there is more work that needs to be done in improving the maximum capacity of the power supply system to ensure that their returns and benefits on economic growth and development is high. Financial prudence or management of resources will help develop the power or energy supply sector, Constantly maintaining and monitoring the effectiveness of the power sector (PHCN especially), other sources of power or energy supply like the Solar energy, Improved Biomass, Wind energy etc are some of the recommendations of this study.
KEYWORDS: Real GDP per capita growth rate, Gross fixed capital formation, Population, 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 and Descriptive Statistics.
