Electricity Energy Consumption and Industrial Sector Performance in Nigeria: An Empirical Analysis

Electricity demand in Nigeria by the industrial sector has continued to increase while its supply remained on the declined over the years. The shortages of electricity supply formed the major background for 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 year 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.